UTG vs XLU: Correlation
Reaves Utility Income Fund (UTG) and Utilities Select Sector SPDR Fund (XLU) show a strong relationship: their 3-year correlation of weekly returns is 0.77.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are UTG and XLU?
Over the past 3 years, UTG and XLU moved with a correlation of 0.77, which is strong. The link has loosened recently: the 1-year correlation (0.65) runs below the 3-year figure (0.77). Over 5 years the correlation is 0.82, and the annualized covariance of weekly returns is 233.4 %².
XLU is one of the assets that tracks UTG most closely: it ranks #1 out of the 23 assets we track against UTG. Neither side won the trailing year by much: +6.8% against +4.1%.
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.
UTG vs XLU: side by side
| UTG (Reaves Utility Income Fund) | XLU (Utilities Select Sector SPDR Fund) | |
|---|---|---|
| 1-year return | +6.8% | +4.1% |
| 5-year return | +53.5% | +46.3% |
| Volatility (ann.) | 19.1% | 15.8% |
| Beta vs S&P 500 | 0.67 | 0.26 |
| Max drawdown (3Y) | -14.9% | -13.1% |
| Market cap | $3.5B | – |
| P/E (trailing) | 2.8 | – |
| Dividend yield | 6.17% | 2.70% |
| Expense ratio | – | 0.08% |
| Assets under management | – | $23.1B |
| Sector / category | US Listed | 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 | UTG | XLU |
|---|---|---|
| 2022 | -13.4% | +1.4% |
| 2023 | +2.8% | -7.2% |
| 2024 | +28.1% | +23.3% |
| 2025 | +23.2% | +16.0% |
| 2026 | +8.1% | +2.5% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are UTG and XLU good diversifiers for each other?
Somewhat, no more. With 0.77 correlation, most large moves hit both names, and the diversification benefit stays modest.
FAQ
What is the correlation between UTG and XLU?
As of 2026-08-27, the correlation of weekly returns between UTG and XLU is 0.77 over 3 years, 0.65 over 1 year and 0.82 over 5 years.
Is XLU a good diversifier for UTG?
Somewhat, no more. With 0.77 correlation, most large moves hit both names, and the diversification benefit stays modest.
What does a correlation of 0.77 mean?
Correlation ranges from −1 to +1. Values near +1 mean two assets move together, near 0 that they move independently, and negative values that they tend to move in opposite directions. It measures co-movement, not performance.
Use this data
$ curl https://www.pairbook.io/api/v1/pairs/utg-vs-xlu.json
Drop this badge in a README or notebook; it updates with the data:
[](https://www.pairbook.io/pair/utg-vs-xlu/)
The core API is free. Terms and every endpoint in the API documentation.
Related comparisons
Hubs: UTG correlations · XLU correlations
