NEE vs XLU: Correlation
NextEra Energy (NEE) and Utilities Select Sector SPDR Fund (XLU) show a strong relationship: their 3-year correlation of weekly returns is 0.73.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are NEE and XLU?
Over the past 3 years, NEE and XLU moved with a correlation of 0.73, which is strong. The relationship has been stable: the 1-year correlation (0.71) sits close to the 3-year figure. Over 5 years the correlation is 0.75, and the annualized covariance of weekly returns is 305.2 %².
Few assets follow NEE as closely as XLU, which ranks #1 of 29 tracked partners. Over the last 12 months NEE came out ahead by 12.1 percentage points (+16.2% against +4.1%). Across three years, the rolling one-year figure varied moderately, from 0.54 to 0.89. One caveat on sizing: NEE is 1.7 times as volatile as the other leg, so an equal-dollar split is far from equal-risk.
How is this computed?
Pearson correlation on weekly returns: ρ(A,B) = cov(rA, rB) / (σA · σB), over windows of 52, 156 and 260 weeks. Covariance is annualized (×52) and expressed in %². Full definitions on the methodology page.
NEE vs XLU: side by side
| NEE (NextEra Energy) | XLU (Utilities Select Sector SPDR Fund) | |
|---|---|---|
| 1-year return | +16.2% | +4.1% |
| 5-year return | +12.9% | +46.3% |
| Volatility (ann.) | 26.5% | 15.8% |
| Beta vs S&P 500 | 0.28 | 0.26 |
| Max drawdown (3Y) | -28.8% | -13.1% |
| Market cap | $174.1B | – |
| P/E (trailing) | 18.9 | – |
| Dividend yield | 2.82% | 2.70% |
| Expense ratio | – | 0.08% |
| Assets under management | – | $23.1B |
| Sector / category | Utilities | Sector ETF |
XLU is an Utilities fund from State Street Investment Management: $23.1B under management, 31 holdings, a 0.08% expense ratio, a 2.70% trailing dividend yield.
Year-by-year returns
| Year | NEE | XLU |
|---|---|---|
| 2022 | -8.5% | +1.4% |
| 2023 | -25.3% | -7.2% |
| 2024 | +21.5% | +23.3% |
| 2025 | +15.5% | +16.0% |
| 2026 | +5.4% | +2.5% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Fund exposure
A structural note: 12.94% of XLU is NEE itself, so the fund partly moves with the stock by construction.
Are NEE and XLU good diversifiers for each other?
Somewhat, no more. With 0.73 correlation, most large moves hit both names, and the diversification benefit stays modest.
FAQ
What is the correlation between NEE and XLU?
Using weekly returns as of 2026-08-27: 0.73 over 3 years, with 0.71 over the last year and 0.75 over 5 years.
Is XLU a good diversifier for NEE?
Somewhat, no more. With 0.73 correlation, most large moves hit both names, and the diversification benefit stays modest.
What does a correlation of 0.73 mean?
On the −1 to +1 scale, 0.73 describes how much the two returns move together: +1 is lockstep, 0 is independence, negative values mean opposite directions. It says nothing about which performed better.
Use this data
$ curl https://www.pairbook.io/api/v1/pairs/nee-vs-xlu.json
Drop this badge in a README or notebook; it updates with the data:
[](https://www.pairbook.io/pair/nee-vs-xlu/)
The core API is free. Terms and every endpoint in the API documentation.
Related comparisons
Hubs: NEE correlations · XLU correlations
