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%).
XLU holds the edge across 5 of 5 key metrics in this comparison. XLU has delivered stronger 1-year price return (+0.19% vs -0.20% for VPU).
- 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
- 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%
| Metric | XLU | VPU |
|---|---|---|
| ETF scorei | 24.7 | 24.7 |
| Latest closei | $43.42 | $187.63 |
| 1M returni | +9.01% | +8.68% |
| 3M returni | -0.84% | -0.82% |
| 6M returni | -5.07% | -5.14% |
| 1Y returni | +0.19% | -0.20% |
The ETF score weights long-term returns and risk-adjusted performance most heavily, but still rewards low expense ratios, larger fund size, and broader diversification — so it can favor low-cost, broad, mega-cap funds over smaller thematic or actively-managed funds even when the latter have delivered stronger returns.
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 | $10.31K (+3.1%) started 2025-11-03 | $10.26K (+2.6%) started 2025-11-03 |
| 5Y ago | $17.8K (+78.0%) started 2021-11-04 | $17.64K (+76.4%) started 2021-11-04 |
| 10Y ago | $35.87K (+258.7%) started 2016-11-04 | $35.09K (+250.9%) started 2016-11-04 |
Hypothetical — past performance does not guarantee future results.
| Metric | XLU | VPU |
|---|---|---|
| Expense ratioi | 0.08% | 0.09% |
| Total assets (AUM)i | $21.33B | $9.47B |
| Dividend yieldi | 3.07% | 3.04% |
| Trailing P/Ei | 19.66 | 19.58 |
| Betai | 0.54 | 0.55 |
| 52-week change | 0.19% | -0.20% |
| Metric | XLU | VPU |
|---|---|---|
| 1Y returni | +0.19% | -0.20% |
| 6M returni | -5.07% | -5.14% |
| 3M returni | -0.84% | -0.82% |
| 1M returni | +9.01% | +8.68% |
| 1Y Sharpe ratio | -0.20 | -0.23 |
| Betai | 0.54 | 0.55 |
| Dividend yieldi | 3.07% | 3.04% |
| 5Y CAGR | +8.68% | +8.43% |
Over the past year, XLU and VPU have moved strongly in the same direction (correlation of 1.00), based on daily returns.
Lower drawdown and smaller single-period drops generally indicate a smoother ride, though they do not guarantee lower future risk.
| Period | Metric | XLU | VPU |
|---|---|---|---|
| 1Y | Growthi | +0.19% | -0.20% |
| CAGRi | +0.19% | -0.20% | |
| Volatilityi | 15.69% | 15.31% | |
| Sharpe ratioi | -0.20 | -0.23 | |
| Sortino ratioi | -0.27 | -0.31 | |
| Max drawdowni | 16.05% | 15.58% | |
| Current drawdowni | 7.13% | 6.98% | |
| Avg drawdowni | 5.21% | 5.02% | |
| Ulcer Indexi | 6.36% | 6.15% | |
| Max daily dropi | 4.06% | 3.99% | |
| Max wkly dropi | 4.96% | 4.93% | |
| 5Y | Growthi | +51.55% | +49.82% |
| CAGRi | +8.68% | +8.43% | |
| Volatilityi | 17.44% | 17.15% | |
| Sharpe ratioi | 0.31 | 0.30 | |
| Sortino ratioi | 0.43 | 0.41 | |
| Max drawdowni | 25.26% | 25.15% | |
| Current drawdowni | 7.13% | 6.98% | |
| Avg drawdowni | 7.27% | 7.09% | |
| Ulcer Indexi | 9.30% | 9.12% | |
| Max daily dropi | 5.56% | 5.46% | |
| Max wkly dropi | 11.70% | 11.67% | |
| 10Y | Growthi | +148.23% | +144.57% |
| CAGRi | +9.52% | +9.36% | |
| Volatilityi | 19.26% | 19.13% | |
| Sharpe ratioi | 0.34 | 0.33 | |
| Sortino ratioi | 0.47 | 0.46 | |
| Max drawdowni | 36.07% | 36.42% | |
| Current drawdowni | 7.13% | 6.98% | |
| Avg drawdowni | 6.35% | 6.25% | |
| Ulcer Indexi | 8.59% | 8.54% | |
| Max daily dropi | 11.36% | 11.23% | |
| Max wkly dropi | 19.45% | 19.50% |
| Category | XLU | VPU |
|---|---|---|
| Fund name | State Street Utilities Select Sector SPDR ETF | Vanguard Utilities Index Fund ETF Shares |
| Type | ETF | ETF |
| Expense ratioi | 0.08% | 0.09% |
| Total assets (AUM)i | $21.33B | $9.47B |
| Dividend yieldi | 3.07% | 3.04% |
- 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
- 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
- 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
- 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
Compare more than two at a time
This page is a fixed writeup on XLU and VPU. Our comparison engine is the interactive version: load up to five tickers, switch timeframes, and get the correlation, drawdown, and overlap analysis that a static page can't show.
Add three more names beside XLU and VPU, mixing stocks and ETFs in the same table — useful when the real question is which of a whole peer group to own.
AI score, forward P/E, analyst target upside, operating margin, and revenue growth are scored head-to-head, with a running tally of which ticker leads on how many metrics.
Volatility, Sharpe and Sortino ratios, maximum, current, and average drawdown, Ulcer Index, and worst single-day and single-week drops across every timeframe.
Pairwise daily-return correlation for every combination, so you can see whether two holdings actually diversify each other or just move together.
A scatter plot of forward P/E against return on equity, plus drawdown and 30-day rolling volatility charts, to separate what is cheap from what is merely beaten down.
For ETFs, a top-holdings comparison that exposes hidden overlap between funds. Every comparison exports to CSV for your own spreadsheet work.
Two comparisons a week are free without an account. A 14-day trial removes the limit and adds AI price forecasts, stock rankings, saved watchlists, and the intrinsic value calculator — no credit card required.
Want deeper AI forecasts?
This comparison page is public and free forever. Subscribers can unlock saved watchlists, full AI rankings, detailed forecasts, and interactive analysis tools.