At a glance
XLU charges 0.08% a year, below the 0.39% average of the 8 funds most like it (the cheapest of 9). It has $23.11B in assets, the largest of that group; it paid 2.79% of its price in distributions over the past 12 months, quarterly. Over the past year it returned −0.4% with distributions reinvested (S&P 500: +11.5%), 4th of those 9 funds; over three years it returned −7.8% a year. At its worst it fell 35.9% in the 2020 crash (S&P 500: 33.7%) and 21.0% in the 2022 bear market (S&P 500: 24.5%), and was back at its earlier high 17 months and 23 months after the lows. Its ten largest positions make up 57.5% of the fund, out of 31 in all.
The short version
Utilities Select Sector SPDR Fund (XLU), from State Street, tracks the Utilities Select Sector Index: the utility companies in the S&P 500, 31 stocks as of June 30, 2026, led by NextEra Energy. It charges 0.08% a year, the lowest of the nine utilities ETFs we compared, and its $23.1 billion in net assets is the largest. It pays dividends quarterly, but owning one sector leaves it exposed to that industry's setbacks.
Price history
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XLU -0.4% over the year to Oct 30, 2026, total return with distributions reinvested.
How it has behaved
| YTD | 1 yr | 3 yr | 5 yr | 10 yr | Since start | |
|---|---|---|---|---|---|---|
| XLU official prospectus, to Dec 31, 2025 | — | +16.01% | — | +9.64% | +10.48% | — |
| XLU price data to Oct 30, 2026 | +3.8% | -0.4% | -7.8% | -6.5% | +0.7% | +2.7% |
- Over the year to Oct 30, 2026, XLU returned -0.4%, 4th of 9 among similar funds.
- Its 5-year annualized return was -6.5% and its 10-year +0.7%.
- In the 2020 COVID crash it fell 35.9% and regained its old high 16.8 months after the low.
- Its worst full calendar year was 2025 (-42.2%); its best was 2014 (+26.5%).
- The deepest fall in its price history was 54.8% (Dec 13, 2000 to Oct 9, 2002), recovered by Sep 1, 2005.
Show as a table
| Year | Price data | Prospectus (official) |
|---|---|---|
| 2026 (to date) | +3.8% | — |
| 2025 | -42.2% | +16.01% |
| 2024 | +21.4% | +23.22% |
| 2023 | -8.7% | -7.07% |
| 2022 | -0.1% | +1.44% |
| 2021 | +15.9% | +17.58% |
| 2020 | -1.2% | +0.35% |
| 2019 | +24.0% | +26.08% |
| 2018 | +2.2% | +4.03% |
| 2017 | +10.3% | +12.02% |
| 2016 | +14.1% | +16.00% |
| 2015 | -6.6% | — |
| 2014 | +26.5% | — |
| 2013 | +10.9% | — |
| 2012 | -1.7% | — |
| 2011 | +16.0% | — |
| 2010 | +2.1% | — |
| 2009 | +8.1% | — |
| 2008 | -30.8% | — |
| 2007 | +16.1% | — |
| 2006 | +17.9% | — |
| 2005 | +13.6% | — |
| 2004 | +20.4% | — |
| 2003 | +23.0% | — |
| 2002 | -31.0% | — |
| 2001 | -14.9% | — |
| 2000 | +19.1% | — |
| 1999 | -6.0% | — |
| 2008 financial crisis stocks fell Oct 9, 2007 – Mar 9, 2009 | Lost 44.3% over that stretch · deepest drop along the way 48.2%, back to its old high 60.6 months after the low |
|---|---|
| 2020 COVID crash stocks fell Feb 19, 2020 – Mar 23, 2020 | Lost 35.7% over that stretch · deepest drop along the way 35.9%, back to its old high 16.8 months after the low |
| 2022 bear market stocks fell Jan 3, 2022 – Oct 12, 2022 | Lost 12.3% over that stretch · deepest drop along the way 21%, back to its old high 22.5 months after the low |
Dividends and income
Show as a table
| Year | Per share | Change |
|---|---|---|
| 2026 (to date) | $0.8900 | |
| 2025 | $1.1650 | +3.6% |
| 2024 | $1.1250 | +4.7% |
| 2023 | $1.0750 | +4.4% |
| 2022 | $1.0300 | +3.0% |
| 2021 | $1.0000 | +1.5% |
| 2020 | $0.9850 | +3.1% |
| 2019 | $0.9550 | +8.5% |
| 2018 | $0.8800 | 0.0% |
| 2017 | $0.8800 | +6.0% |
| 2016 | $0.8300 | +4.4% |
| 2015 | $0.7950 | +6.0% |
| 2014 | $0.7500 | +2.0% |
| 2013 | $0.7350 | +59.4% |
| 2012 | $0.4612 | +34.9% |
| 2011 | $0.3420 | +7.5% |
| 2010 | $0.3180 | -0.1% |
| 2009 | $0.3182 | +3.0% |
| 2008 | $0.3088 | +12.8% |
| 2007 | $0.2737 | -2.1% |
| 2006 | $0.2797 | +10.8% |
| 2005 | $0.2525 | +15.6% |
| 2004 | $0.2185 | +9.7% |
| 2003 | $0.1992 | -13.4% |
| 2002 | $0.2300 | +4.5% |
| 2001 | $0.2200 | -24.2% |
| 2000 | $0.2903 | +1.1% |
| 1999 | $0.2871 |
Living on XLU: its income record, cuts, and how much a $1,000 monthly income takes →
What's inside
As of Jun 30, 2026, the fund held 31 securities; the ten largest made up 57.53% of assets.
| Holding | Weight | |
|---|---|---|
| NextEra Energy Inc | 12.89% | |
| Southern Co | 7.60% | |
| Duke Energy Corp | 6.95% | |
| Constellation Energy Corp | 5.59% | |
| American Electric Power Co Inc | 5.24% | |
| Sempra | 4.27% | |
| Dominion Energy Inc | 4.23% | |
| Entergy Corp | 3.70% | |
| Vistra Corp | 3.54% | |
| Xcel Energy Inc | 3.53% | |
| Exelon Corp | 3.36% | |
| Consolidated Edison Inc | 2.87% | |
| Public Service Enterprise Group Inc | 2.85% | |
| WEC Energy Group Inc | 2.68% | |
| PG&E Corp | 2.61% |
By country
United States 99.67%By asset type
Stocks 99.67%By sector
Sectors of the companies held, for the 89.3% of the fund in companies that have a stock page here; other holdings and cash aren't classified. Source: N-PORT holdings report as of Jun 30, 2026. Cash, money-market funds and derivatives are shown separately from the securities list.What changed recently
- Over the three months to Jun 30, 2026, investors withdrew a net $1.04B (creations minus redemptions, per the N-PORT report).
- Monthly total returns reported for that quarter: +2.08%, -5.14%, +2.69%.
How it works
XLU is an index fund: it aims to match, before expenses, the price and yield performance of the Utilities Select Sector Index, calculated by S&P Dow Jones Indices. The index takes only S&P 500 companies classed as utilities under the Global Industry Classification Standard (GICS), a common system for sorting companies by industry. That covers electric, gas and water utilities, multi-utilities, and independent power and renewable electricity producers. It had 31 stocks as of November 30, 2025.
Each stock is weighted by market capitalization, the total value of its shares, so bigger companies count more. The weights of very large single stocks may be adjusted so the fund meets federal tax-code requirements. Even so, it is concentrated: as of June 30, 2026, NextEra Energy was 12.9% of assets, Southern Co. 7.6% and Duke Energy 6.9%, and the top 10 holdings made up 57.5%.
SSGA Funds Management, the fund's adviser, uses replication: it holds substantially all the index stocks in about the same proportions, keeping at least 95% of assets in them, with the rest allowed in cash or money market funds. Trading is light; its January 2026 prospectus reports portfolio turnover of 2%. The fund is classified as "non-diversified," meaning it can hold fewer companies in bigger amounts, so a fall in one large holding hurts more.
What it really costs
- XLU charges 0.08% a year, versus an average of 0.39% for the similar funds below (1st of 9, cheapest first).
- Of that, 0.03% is the management fee; the rest covers other fund expenses.
- Using the prospectus's standard example, $10,000 invested would cost about $8 in the first year and $103 over 10 years (assuming a 5% annual return).
| Cost of $10,000 (SEC example) | 1 yr | 3 yrs | 5 yrs | 10 yrs |
|---|---|---|---|---|
| XLU | $8 | $26 | $45 | $103 |
In a retirement portfolio
Its quarterly dividends from US utilities, a 2.8% trailing yield as of October 29, 2026, fit an income role, but owning one sector makes it a complement to a diversified core.
XLU can add quarterly dividend income from US electric, gas and water companies at low cost: a 2.8% trailing 12-month yield as of October 29, 2026, and $8 in first-year costs on $10,000 under the SEC's standard example. It isn't crash-proof. It fell 48% from December 2007 to March 2009 and didn't regain that peak until March 2014. It dropped 36% in early 2020, recovering by August 2021, and 21% in fall 2022, recovering by August 2024. Its deepest fall, 55% in 2000–2002, took until September 2005 to recover.
In the prospectus's 2016–2025 record, its worst calendar year was 2023, down 7.07%. For someone drawing on savings, cashing in shares during a slump like 2008 could lock in deep losses; the dividends offer some income without touching shares, but they aren't guaranteed. Past results don't predict future ones, and a plan should consider the whole portfolio, not one fund.
Who it may suit — and who should look elsewhere
May suit
- Cost-conscious investors seeking US utility stocks: its 0.08% annual fee was the lowest of nine similar utilities ETFs compared.
- Investors wanting quarterly dividends from electric, gas and water companies, with a 2.8% trailing yield as of October 29, 2026.
- Investors with a diversified core who want a utilities tilt through a large, simple index fund: $23.1 billion in net assets, 2% turnover.
Look elsewhere if
- Investors uneasy with concentration: NextEra Energy was 12.9% and the top 10 holdings 57.5% as of June 30, 2026; RSPU equal-weights the sector, at 0.40%.
- Those wanting utilities outside the US: XLU was 99.7% US companies in June 2026; iShares Global Utilities ETF (JXI), at 0.41%, is worth comparing.
- Anyone who may need to cash out in a crash: XLU fell 48% from December 2007 to March 2009 and didn't regain that peak until 2014.
Close alternatives
Matched by holdings overlap from the latest N-PORT reports.
| Fund | Overlap | Cost | Net assets | 1 yr | 3 yr |
|---|---|---|---|---|---|
| XLU this fund | — | 0.08% | $23.11B | -0.4% | -7.8% |
| FUTY Fidelity MSCI Utilities Index ETF | 90% | 0.084% | $2.32B | -4.0% | +17.0% |
| VPU Vanguard Utilities ETF | 89% | 0.09% | $10.08B | -4.1% | +17.0% |
| IDU iShares U.S. Utilities ETF | 86% | 0.39% | $1.46B | -2.5% | +17.2% |
| RSPU Invesco S&P 500 Equal Weight Utilities ETF | 74% | 0.4% | $538.5M | -1.5% | +18.0% |
| JXI iShares Global Utilities ETF | 62% | 0.41% | $322.8M | +3.4% | +18.7% |
| PUI Invesco Dorsey Wright Utilities Momentum ETF | 60% | 0.6% | $54.6M | -5.9% | +16.7% |
| ZAP Global X U.S. Electrification ETF | 55% | 0.5% | $461.7M | +3.6% | — |
Questions investors ask
Is XLU good for retirement income?
It can be one source of income, though the yield is moderate. XLU paid $1.21 a share in dividends over the 12 months to October 29, 2026, a 2.8% yield, in quarterly payments, and it charges 0.08% a year. Because it holds one sector, 31 utility stocks as of June 30, 2026, it may suit a supporting role beside broader stock and bond holdings. Its price can also fall hard: it dropped 48% between December 2007 and March 2009.
Does XLU pay monthly dividends?
No. XLU pays dividends quarterly, so four times a year rather than monthly. The money comes from dividends paid by the utilities it owns, such as NextEra Energy, Southern Co. and Duke Energy, so payments can change from one quarter to the next. Over the 12 months to October 29, 2026, the fund's yield was 2.8%, meaning a year's dividends equaled about 2.8% of the share price.
What's the difference between XLU and VPU?
Not much in holdings: about 89% of what the two funds own overlaps. XLU holds only utilities in the S&P 500, 31 stocks as of June 30, 2026, and charges 0.08% a year, versus 0.09% for Vanguard Utilities ETF (VPU). XLU is also bigger, with $23.1 billion in net assets against VPU's $10.1 billion (as of June 30 and August 31, 2026). Fidelity MSCI Utilities Index ETF (FUTY), at 0.084%, overlaps XLU even more, about 90%.
What is XLU's average annual return?
XLU returned an average of 10.48% a year over the 10 years ended December 31, 2025, and 9.64% a year over five years, according to its prospectus. Year by year, results varied widely: a 26.08% gain in 2019, a 7.07% loss in 2023 and a 16.01% gain in 2025. For 2026 through October 29, its share price was up 3.1%. Past returns don't predict future ones.
Is XLU safe in a stock market crash?
No stock fund is safe in a crash, and XLU has fallen sharply in several. It dropped 48% from December 2007 to March 2009 and 36% from February to March 2020; its worst quarter in the prospectus was a 13.53% loss in the first quarter of 2020. It fared better in 2022, finishing the year up 1.44% despite a 21% slide that fall. Shares aren't insured, and the fund is concentrated in one sector.