ETF Versus

XLB vs XLU

State Street Materials Select Sector SPDR ETF vs State Street Utilities Select Sector SPDR ETF

Last updated: 2026-04-02

XLB State Street

State Street Materials Select Sector SPDR ETF (XLB) is an exchange-traded fund issued by State Street that provides exposure to us sector - materials securities. It charges a low expense ratio of 0.09%. The fund offers a moderate dividend yield of 1.74%. Launched in 1998, the fund has a 28-year track record.

AUM: N/A ER: 0.09% Yield: 1.74% Since: 1998-12-22
XLU State Street

State Street Utilities Select Sector SPDR ETF (XLU) is an exchange-traded fund issued by State Street that provides exposure to us sector - utilities securities. It charges a low expense ratio of 0.09%. The fund offers an attractive dividend yield of 2.57%. Launched in 1998, the fund has a 28-year track record.

AUM: N/A ER: 0.09% Yield: 2.57% Since: 1998-12-22

Quick Verdict

Both funds have delivered similar 1-year returns (15.8% vs 16.7%), tracking closely. Income investors may prefer XLU for its higher yield (2.6% vs 1.7%).

Key Metrics

Metric XLB XLU
Expense Ratio 0.09% 0.09%
Dividend Yield 1.7% 2.6%
Fund Family State Street State Street
Category US Sector - Materials US Sector - Utilities

Performance Chart

Indexed to 100 at start (5-year comparison)

85 98 111 124 137 150 2021-04 2022-06 2023-10 2024-12 2026-04
XLB +25.2%
XLU +43.3%

Performance Comparison

Period XLB XLU Difference
1 Month -3.00% -1.55% -1.45%
3 Months +9.24% +7.32% +1.92%
6 Months +12.23% +3.24% +8.99%
YTD +9.24% +7.32% +1.92%
1 Year +15.80% +16.70% -0.90%
3 Years +24.13% +37.86% -13.73%
5 Years +25.21% +43.29% -18.08%

Fee Impact Over Time

Estimated fee cost difference assuming 8% annual returns

Investment Period XLB Fees XLU Fees You Save
$10,000 10 years $179 $179 $0
$10,000 20 years $771 $771 $0
$10,000 30 years $2,486 $2,486 $0
$50,000 10 years $896 $896 $0
$50,000 30 years $12,428 $12,428 $0
$100,000 30 years $24,855 $24,855 $0

Risk Metrics

Based on 5 years of daily returns

Metric XLB XLU
Annualized Volatility 18.9% 17.1%
Max Drawdown -25.7% -28.1%
Sharpe Ratio 0.10 0.24

Dividend Comparison

Metric XLB XLU
Annual Dividend (per share) $0.87 $1.19
Dividend Yield 1.74% 2.57%
Distribution Frequency Quarterly Quarterly

Which One Should You Choose?

Choose XLU if...

you prioritize dividend income and want higher regular distributions from your portfolio.

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