Dividend comparison
XLU vs VPU: Which Is Better?
Fees, yield, total returns, drawdowns, holdings overlap and dividend history for State Street Utilities Select Sector SPDR ETF and Vanguard Utilities ETF, side by side. Updated October 21, 2026.
XLU vs VPU: key differences
The short answer, from the latest data on this page.
- Fees. XLU is cheaper at 0.08% a year versus 0.09% for VPU. On $10,000 that is $1 a year less in fees.
- Income. Their trailing yields are almost the same: 2.89% for XLU and 2.87% for VPU. Both pay quarterly.
- Performance. Over the last 5 years, XLU returned 44.3% versus 40.3% for VPU, with dividends reinvested. $10,000 would have grown to $14,431 in XLU and $14,032 in VPU.
- Risk. Their worst declines over the last 5 years were similar: -25.2% for XLU and -25.1% for VPU from peak to trough.
- Diversification. VPU holds 69 positions and XLU holds 31. The ten largest positions make up 58.7% of XLU and 52.3% of VPU.
- Overlap. 89% of the two portfolios overlap by weight, across 31 shared holdings. Owning both adds little diversification.
- Dividend growth. VPU grew its yearly payout 4.5% a year over the last 4 years, versus 3.7% for XLU.
- Size. XLU is the larger fund with $24.5 billion in assets, against $9.5 billion for VPU.
Bottom line: XLU fits better if you care most about stronger 5-year returns. VPU fits better if you care most about broader diversification. With 89% overlap, most investors would hold one or the other rather than both.
Side-by-side snapshot
Trailing twelve-month figures where available. Higher yield is highlighted — not a buy recommendation.
| Metric | XLU State Street Utilities Select Sector SPDR ETF | VPU Vanguard Utilities ETF |
|---|---|---|
| Dividend yield (TTM) | 2.89% | 2.87% |
| Dividend / share (TTM) | $1.21 | $5.20 |
| Payout frequency | Quarterly | Quarterly |
| Last dividend | $0.3004 on Sep 23, 2026 | $1.2580 on Sep 25, 2026 |
| Ex-dividend date | Sep 21, 2026 | Sep 23, 2026 |
| Dividend growth (CAGR) | 3.7% over 4 yrs | 4.5% over 4 yrs |
| Price | $41.88 | $181.04 |
| Dividend growth streak | 15 years | 4 years |
| Beta | 0.49 | 0.50 |
| Max drawdown (5Y) | -25.2% | -25.1% |
| Market cap | $24.69B | $9.50B |
| Exchange | AMEX | AMEX |
| Expense ratio | 0.08% | 0.09% |
| Assets under management | $24.50B | $9.50B |
| Number of holdings | 31 | 69 |
| Top 10 concentration | 58.7% | 52.3% |
Income on a $10,000 investment
Illustrative only — assumes current TTM yield stays constant. Actual distributions change.
XLU
$24.11/mo
$289 /yr at 2.89% yield
VPU
$23.93/mo
$287 /yr at 2.87% yield
Dividend history
Total dividends paid per share in each calendar year. XLU pays quarterly; VPU pays quarterly.
| Year | XLU | VPU |
|---|---|---|
| 2025 | $1.1572 | $5.0438 |
| 2024 | $1.1208 | $4.9281 |
| 2023 | $1.0727 | $4.7793 |
| 2022 | $1.0289 | $4.5773 |
| 2021 | $0.9999 | $4.2234 |
Strategy: Sector and thematic
Funds that hold a single industry or theme, such as technology, semiconductors, healthcare or energy. Funds covering the same sector can still differ in concentration rules: some cap the largest positions while others let the biggest companies take a quarter of the fund. Sector funds are usually used to tilt a portfolio rather than as its core.
A single sector can fall far further than the broad market and stay down for years, and the largest names often dominate the fund.
Performance
Total returns with dividends reinvested, from the adjusted closing price series. $10,000 invested on Oct 20, 2021 would now be worth $14,431 in XLU and $14,032 in VPU.
| Period | XLU | VPU |
|---|---|---|
| 1 month | 2.65% | 1.72% |
| 3 months | -6.12% | -7.26% |
| Year to date | 0.14% | -2.16% |
| 1 year | -5.89% | -8.92% |
| 3 years | 56.62% | 53.67% |
| 5 years | 44.31% | 40.32% |
- XLU
- VPU
Both series indexed to 100 on 2021-10-20 using the adjusted closing price series. Past performance does not guarantee future results.
Sector allocation
Weight of each sector within the fund. Sectors are aligned on the same row so the two funds can be read against each other directly.
- XLU
- VPU
XLU vs VPU holdings overlap
89% overlap by weight, with 31 holdings in common. Overlap adds up the smaller of the two weights for every stock both funds own, so 100% would mean identical portfolios.
| Largest shared holdings | XLU weight | VPU weight |
|---|---|---|
| NEENEXTERA ENERGY INC | 12.54% | 11.39% |
| SOSOUTHERN CO/THE | 7.90% | 6.74% |
| DUKDUKE ENERGY CORP | 7.13% | 6.41% |
| CEGCONSTELLATION ENERGY | 6.74% | 5.73% |
| AEPAMERICAN ELECTRIC POWER | 5.21% | 4.66% |
| DDOMINION ENERGY INC | 4.21% | 3.84% |
| SRESEMPRA | 4.11% | 3.68% |
| VSTVISTRA CORP | 3.61% | 3.36% |
| ETRENTERGY CORP | 3.69% | 3.34% |
| XELXCEL ENERGY INC | 3.59% | 3.17% |
Top 10 holdings
Largest positions by portfolio weight.
XLU31 holdings total
Quick verdict
XLU fits better if you care most about stronger 5-year returns. VPU fits better if you care most about broader diversification. With 89% overlap, most investors would hold one or the other rather than both. Model the holding inside your real portfolio before deciding.
Still deciding? Compare them in your portfolio
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Frequently asked questions
Is XLU or VPU better for dividend income?
It depends on your goals. XLU currently yields 2.89% Trailing Twelve Months (TTM) while VPU yields 2.87%. Higher yield means more current income per dollar invested, but may come with different risk, growth, or NAV characteristics. Compare total return and payout sustainability — not just the headline yield.
What is the difference between XLU and VPU?
State Street Utilities Select Sector SPDR ETF (XLU) is an ETF listed on AMEX. Vanguard Utilities ETF (VPU) is an ETF listed on AMEX. Side-by-side metrics on this page cover yield, fees, returns, drawdowns, holdings overlap and dividend history when available.
Which is cheaper, XLU or VPU?
XLU has the lower expense ratio. XLU charges 0.08% a year and VPU charges 0.09%, a difference of $1 a year on a $10,000 investment.
Which has performed better, XLU or VPU?
Over the last 5 years, XLU has the higher total return with dividends reinvested: XLU returned 44.3% and VPU returned 40.3%. Past performance does not predict future returns.
Which is riskier, XLU or VPU?
Measured by the worst peak-to-trough decline over the last five years, XLU has been riskier: XLU fell as much as 25.2% and VPU as much as 25.1%. Their betas are 0.49 and 0.50.
How much do XLU and VPU overlap?
About 89% of the two portfolios overlap by weight, across 31 shared holdings. The largest shared positions are NEE, SO, DUK. Holding both adds little diversification.
How often do XLU and VPU pay dividends?
Both pay quarterly. The most recent payments were $0.3004 for XLU and $1.2580 for VPU.
How much income does $10,000 in XLU vs VPU generate?
At current TTM yields, $10,000 in XLU would generate roughly $24.11 per month ($289 annually). The same amount in VPU would produce about $23.93 per month ($287 annually). Actual payouts vary with distribution changes and reinvestment.
Can I hold both XLU and VPU?
Yes. Many income investors hold both to diversify strategy or index exposure. Whether the combination actually diversifies depends on overlapping holdings and factor exposure. Model both inside Dividend Wealth to see combined income, sector mix, and forecast impact.
Where can I compare XLU vs VPU with my full portfolio?
Create a free Dividend Wealth account to import or enter holdings, forecast dividend income, and see how XLU and VPU fit alongside the rest of your portfolio. A 14-day free trial of Standard is available with no credit card required; a limited Free plan is also available.
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For informational and educational purposes only. Not investment advice. Past performance and current yields do not guarantee future results. Verify figures independently before making investment decisions.