LIVE
XLU
Utilities Select Sector SPDR Fund · ETF
$44.76
+0.95% this month
VERSUS
⟷
COMPARE
NEE
NextEra Energy, Inc. · Utilities
$86.75
-3.68% this month
Scoreboard verdict
Across expense ratio, momentum, yield, fund size, risk
XLU
1
NEE
2
Comparison scoreboard
NEE LEADS 2/5Exp. Ratio
XLU 0.08%
NEE N/A
1Y Return
XLU +14.28%
NEE ✓+20.72%
Div. Yield
XLU 2.68%
NEE ✓2.90%
AUM
XLU $22.35B
NEE N/A
Beta
XLU ✓0.60
NEE 0.67
Metrics last refreshed: 6/20/2026
Quick take
XLU vs NEE Stock Comparison: AI Score, Valuation, Performance and Upside
XLU and NEE are related investments — NextEra Energy is XLU's largest holding at 15%+ of the ETF. The comparison is between owning the entire US utility sector diversified across 30+ utilities versus owning NextEra Energy specifically as the industry's growth leader. NEE offers faster earnings growth from its renewable energy business; XLU offers broader diversification across all utility types.
XLU vs NEE is diversified utility sector income across all regulated utilities (XLU) versus concentrated renewable energy growth and Florida utility exposure in the world's largest renewable producer (NextEra Energy) — NEE's renewable growth premium vs XLU's diversification benefits for yield-focused utility investors.
Live analysis · updated 6/20/2026
NEE holds the edge across 2 of 5 key metrics in this comparison. NEE has delivered stronger 1-year price return (+20.72% vs +14.28% for XLU).
Normalized 1Y performance
XLU
NEE
Recent returns
XLU
NEE
Analyst price targets & sentiment
XLU
Price target data unavailable
N/A
NEE · 20 analysts
STRONG BUYHOLDSTRONG SELL
Buy (2.2/5.0)
Price target range
analyst low$52.00
analyst high$103.00
analyst mean$98.47
current price$86.75
+14.5% upside to analyst mean
Who should consider this stock?
XLU may suit investors who:
- →prefer diversified utility sector exposure across 30+ regulated electric, gas, and multi-utilities in the S&P 500
- →value spreading utility risk across Southern Company, Duke Energy, Dominion, AEP, and others beyond NextEra concentration
- →want utility sector income in falling interest rate environments or recession protection from essential electricity services
- →are comfortable with interest rate sensitivity that reduces utility sector valuations when Treasury yields rise
NEE may suit investors who:
- →prefer the world's leading renewable energy company with wind, solar, and battery storage as a long-duration growth driver
- →value Florida Power & Light's regulated earnings base in one of the fastest-growing US state power markets
- →want utility-sector income with above-average earnings growth from renewable energy project additions
- →are comfortable with utility-sector interest rate sensitivity and the related NextEra Energy Partners complexity affecting sentiment
Performance & AI score
| Metric | XLU | NEE |
|---|---|---|
| ETF score | 57.0 | 50.1 |
| Latest close | $44.76 | $86.75 |
| 1M return | +0.95% | -3.68% |
| 6M return | +6.20% | +8.05% |
| 1Y return | +14.28% | +20.72% |
$10,000 invested — hypothetical growth (dividends reinvested)
How much would $10,000 be worth today if invested at the start of each period, with all dividends reinvested?
| Period | XLU | NEE |
|---|---|---|
| 1Y ago | $11.75K (+17.5%) started 2025-06-18 | $12.12K (+21.2%) started 2025-06-18 |
| 5Y ago | $19.12K (+91.2%) started 2021-06-18 | $14.17K (+41.7%) started 2021-06-21 |
| 10Y ago | $34.77K (+247.7%) started 2016-06-20 | $44.32K (+343.2%) started 2016-06-20 |
Hypothetical — past performance does not guarantee future results.
Fund characteristics
| Metric | XLU | NEE |
|---|---|---|
| Expense ratio | 0.08% | N/A |
| Total assets (AUM) | $22.35B | N/A |
| Dividend yield | 2.68% | 2.90% |
| Trailing P/E | 20.60 | 21.82 |
| Beta | 0.60 | 0.67 |
| 52-week change | 14.28% | 20.72% |
Risk & fund metrics
| Metric | XLU | NEE |
|---|---|---|
| 1Y return | +14.28% | +20.72% |
| 6M return | +6.20% | +8.05% |
| 1M return | +0.95% | -3.68% |
| 1Y Sharpe ratio | 0.68 | 0.75 |
| Beta | 0.60 | 0.67 |
| Dividend yield | 2.68% | 2.90% |
| 5Y CAGR | +10.21% | +5.12% |
Drawdown & downside risk
Lower drawdown and smaller single-period drops generally indicate a smoother ride, though they do not guarantee lower future risk.
1Y risk snapshot
XLU max drawdown9.18%
NEE max drawdown14.53%
XLU max wkly drop4.96%
NEE max wkly drop7.21%
5Y risk snapshot
XLU max drawdown25.26%
NEE max drawdown44.97%
XLU max wkly drop11.70%
NEE max wkly drop22.71%
10Y risk snapshot
XLU max drawdown36.07%
NEE max drawdown44.97%
XLU max wkly drop19.45%
NEE max wkly drop24.36%
Performance metrics by period
| Period | Metric | XLU | NEE |
|---|---|---|---|
| 1Y | Growth | +14.28% | +21.21% |
| CAGR | +14.29% | +21.24% | |
| Sharpe ratio | 0.68 | 0.75 | |
| Max drawdown | 9.18% | 14.53% | |
| Max daily drop | 4.06% | 6.09% | |
| Max wkly drop | 4.96% | 7.21% | |
| 5Y | Growth | +62.56% | +28.32% |
| CAGR | +10.21% | +5.12% | |
| Sharpe ratio | 0.39 | 0.15 | |
| Max drawdown | 25.26% | 44.97% | |
| Max daily drop | 5.56% | 8.97% | |
| Max wkly drop | 11.70% | 22.71% | |
| 10Y | Growth | +142.38% | +247.53% |
| CAGR | +9.26% | +13.27% | |
| Sharpe ratio | 0.32 | 0.44 | |
| Max drawdown | 36.07% | 44.97% | |
| Max daily drop | 11.36% | 13.42% | |
| Max wkly drop | 19.45% | 24.36% |
Fund overview
| Category | XLU | NEE |
|---|---|---|
| Fund name | State Street Utilities Select Sector SPDR ETF | NextEra Energy, Inc. |
| Type | ETF | ETF |
| Expense ratio | 0.08% | N/A |
| Total assets (AUM) | $22.35B | N/A |
| Dividend yield | 2.68% | 2.90% |
XLU strengths
- →Essential services with regulated revenue providing earnings stability regardless of economic conditions
- →Reliable dividend income from utilities' regulated return-on-equity model generating predictable cash flows
- →AI data center electricity demand is a multi-year tailwind for utility revenue as hyperscalers seek power purchase agreements
NEE strengths
- →World's largest renewable energy company with an enormous backlog of contracted wind, solar, and battery storage projects
- →Florida Power & Light serves one of the fastest-growing US states — Florida population growth drives rate base growth without regulatory risk
- →25+ years of consecutive dividend increases — one of the most reliable dividend growth utilities in the S&P 500
Risks to watch — XLU
- →Rising interest rates compress utility valuations as bond alternatives become more attractive relative to utility dividend yields
- →XLU's largest holding is NextEra (NEE) at 15%+ — so XLU is significantly exposed to NEE's performance specifically
- →Renewable energy transition capital requirements for utilities increase debt levels and can pressure dividend growth
Risks to watch — NEE
- →Interest rate sensitivity — utility stocks including NEE de-rated significantly in 2022–2023 as rates rose rapidly, despite strong operational performance
- →NextEra Energy Partners (a related limited partnership) distribution cuts in 2023 created investor confusion and temporary sentiment pressure
- →Renewable energy project backlog execution requires supply chain management for solar panels and wind turbines — cost inflation risks
Frequently asked questions
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