LIVE
XLU
Utilities Select Sector SPDR Fund · ETF / Utilities
$44.76
+0.95% this month
VERSUS
⟷
COMPARE
VPU
Vanguard Utilities ETF · ETF / Utilities
$193.95
+0.98% this month
Scoreboard verdict
Across expense ratio, momentum, yield, fund size, risk
XLU
5
VPU
0
Comparison scoreboard
XLU LEADS 5/5Exp. Ratio
XLU ✓0.08%
VPU 0.09%
1Y Return
XLU ✓+14.28%
VPU +14.27%
Div. Yield
XLU ✓2.68%
VPU 2.64%
AUM
XLU ✓$22.35B
VPU $10.58B
Beta
XLU ✓0.60
VPU 0.62
Metrics last refreshed: 6/20/2026
Quick take
XLU vs VPU Stock Comparison: AI Score, Valuation, Performance and Upside
XLU and VPU are essentially equivalent utilities ETFs at identical expense ratios. XLU holds S&P 500 large-cap utilities (~30 stocks); VPU holds 65+ utilities including small/mid-caps. Both are concentrated in NextEra, Southern, and Duke as top holdings. For liquidity and tactical use, XLU; for completeness including water utilities and smaller regional utilities, VPU. Both provide similar defensive income characteristics and interest rate sensitivity.
XLU vs VPU — Utilities Select Sector SPDR (S&P 500 utilities with NextEra-concentrated large-cap defensive income at 0.09%) versus Vanguard Utilities ETF (total market utilities with 65+ holdings including water utilities and smaller regional utilities at 0.10%).
Live analysis · updated 6/20/2026
XLU holds the edge across 5 of 5 key metrics in this comparison. XLU has delivered stronger 1-year price return (+14.28% vs +14.27% for VPU).
Normalized 1Y performance
XLU
VPU
Recent returns
XLU
VPU
Who should consider this stock?
XLU may suit investors who:
- →want maximum liquidity for tactical rate-sensitive positioning — XLU is the most liquid utilities ETF
- →value S&P 500 large-cap quality filter and trust NextEra's renewable energy leadership justifying concentration
- →use utilities ETFs for tactical allocation in rate-falling environments where utility dividend yields benefit
- →are comfortable with NextEra 18-20% concentration and limited small-cap utility exposure
VPU may suit investors who:
- →prefer broader utility market coverage including water utilities (American Water Works) for more complete defensive income positioning
- →use VPU for core buy-and-hold defensive income allocation and don't need XLU-level trading liquidity
- →value Vanguard's index methodology and investor-aligned ownership structure for long-term holdings
- →are comfortable with slightly lower liquidity and 0.10% expense ratio vs XLU's 0.09%
Performance & AI score
| Metric | XLU | VPU |
|---|---|---|
| ETF score | 57.0 | 53.0 |
| Latest close | $44.76 | $193.95 |
| 1M return | +0.95% | +0.98% |
| 6M return | +6.20% | +6.07% |
| 1Y return | +14.28% | +14.27% |
$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 | VPU |
|---|---|---|
| 1Y ago | $11.75K (+17.5%) started 2025-06-18 | $11.75K (+17.5%) started 2025-06-18 |
| 5Y ago | $19.12K (+91.2%) started 2021-06-18 | $19.01K (+90.1%) started 2021-06-18 |
| 10Y ago | $34.77K (+247.7%) started 2016-06-20 | $34.48K (+244.8%) started 2016-06-20 |
Hypothetical — past performance does not guarantee future results.
Fund characteristics
| Metric | XLU | VPU |
|---|---|---|
| Expense ratio | 0.08% | 0.09% |
| Total assets (AUM) | $22.35B | $10.58B |
| Dividend yield | 2.68% | 2.64% |
| Trailing P/E | 20.60 | 20.50 |
| Beta | 0.60 | 0.62 |
| 52-week change | 14.28% | 14.27% |
Risk & fund metrics
| Metric | XLU | VPU |
|---|---|---|
| 1Y return | +14.28% | +14.27% |
| 6M return | +6.20% | +6.07% |
| 1M return | +0.95% | +0.98% |
| 1Y Sharpe ratio | 0.68 | 0.69 |
| Beta | 0.60 | 0.62 |
| Dividend yield | 2.68% | 2.64% |
| 5Y CAGR | +10.21% | +10.01% |
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%
VPU max drawdown8.90%
XLU max wkly drop4.96%
VPU max wkly drop4.86%
5Y risk snapshot
XLU max drawdown25.26%
VPU max drawdown25.15%
XLU max wkly drop11.70%
VPU max wkly drop11.67%
10Y risk snapshot
XLU max drawdown36.07%
VPU max drawdown36.42%
XLU max wkly drop19.45%
VPU max wkly drop19.50%
Performance metrics by period
| Period | Metric | XLU | VPU |
|---|---|---|---|
| 1Y | Growth | +14.28% | +14.27% |
| CAGR | +14.29% | +14.28% | |
| Sharpe ratio | 0.68 | 0.69 | |
| Max drawdown | 9.18% | 8.90% | |
| Max daily drop | 4.06% | 3.99% | |
| Max wkly drop | 4.96% | 4.86% | |
| 5Y | Growth | +62.56% | +61.13% |
| CAGR | +10.21% | +10.01% | |
| Sharpe ratio | 0.39 | 0.38 | |
| Max drawdown | 25.26% | 25.15% | |
| Max daily drop | 5.56% | 5.46% | |
| Max wkly drop | 11.70% | 11.67% | |
| 10Y | Growth | +142.38% | +139.60% |
| CAGR | +9.26% | +9.14% | |
| Sharpe ratio | 0.32 | 0.32 | |
| Max drawdown | 36.07% | 36.42% | |
| Max daily drop | 11.36% | 11.23% | |
| Max wkly drop | 19.45% | 19.50% |
Fund overview
| Category | XLU | VPU |
|---|---|---|
| Fund name | State Street Utilities Select Sector SPDR ETF | Vanguard Utilities Index Fund ETF Shares |
| Type | ETF | ETF |
| Expense ratio | 0.08% | 0.09% |
| Total assets (AUM) | $22.35B | $10.58B |
| Dividend yield | 2.68% | 2.64% |
XLU strengths
- →Regulated monopoly stable earnings: utility companies earn predictable returns on regulated assets set by state utility commissions — providing stable earnings regardless of economic cycles
- →AI data center electricity demand tailwind: large language model training and inference requires enormous electricity — utility companies (especially those serving AI data center clusters) benefit from secular electricity demand growth
- →3-4% dividend yield: XLU provides above-market dividend income from utility companies' regulated earnings — attractive for income investors
VPU strengths
- →65+ holdings vs XLU's 30: VPU includes smaller regional utilities and water utilities for broader coverage
- →Water utility inclusion: American Water Works and Essential Utilities (water utilities) are in VPU — providing water infrastructure exposure that XLU may exclude
- →Vanguard total market methodology: more complete US utility sector representation for buy-and-hold investors
Risks to watch — XLU
- →Interest rate sensitivity: utilities borrow heavily to fund infrastructure — rising interest rates increase utility borrowing costs and make utility dividend yields less attractive vs risk-free Treasuries
- →Capital-intensive infrastructure: utilities must continuously invest in new transmission, generation, and distribution infrastructure — high capex relative to earnings limits free cash flow
- →NextEra concentration: 18-20% in NextEra Energy means XLU's performance is disproportionately tied to one company's renewable energy strategy
Risks to watch — VPU
- →Lower liquidity than XLU: VPU has less trading volume — wider bid-ask spreads for tactical positioning
- →Similar performance to XLU: the large-cap overlap dominates returns — small-cap utility additions rarely create material performance divergence
- →Water utilities may have different risk profiles: water utilities face regulatory and infrastructure replacement risks different from electric utilities
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