XEL vs XLU: Correlation
Measured on weekly returns over the past three years, Xcel Energy (XEL) and Utilities Select Sector SPDR Fund (XLU) carry a correlation of 0.67, a strong link.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are XEL and XLU?
Over the past 3 years, XEL and XLU moved with a correlation of 0.67, which is strong. The link has tightened recently: the 1-year correlation (0.85) runs above the 3-year figure (0.67). Over 5 years the correlation is 0.77, and the annualized covariance of weekly returns is 219.8 %².
Among the 35 assets we track against XEL, XLU ranks #8 by 3-year correlation. On 12-month performance XEL holds a 5.1-point edge, +9.2% against +4.1%. Do not treat this figure as fixed: across three years the rolling one-year correlation ranged all the way from 0.43 to 0.93.
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.
XEL vs XLU: side by side
| XEL (Xcel Energy) | XLU (Utilities Select Sector SPDR Fund) | |
|---|---|---|
| 1-year return | +9.2% | +4.1% |
| 5-year return | +31.1% | +46.3% |
| Volatility (ann.) | 20.7% | 15.8% |
| Beta vs S&P 500 | 0.09 | 0.26 |
| Max drawdown (3Y) | -24.0% | -13.1% |
| Market cap | $48.2B | – |
| P/E (trailing) | 21.3 | – |
| Dividend yield | 2.99% | 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 | XEL | XLU |
|---|---|---|
| 2022 | +6.4% | +1.4% |
| 2023 | -8.7% | -7.2% |
| 2024 | +12.3% | +23.3% |
| 2025 | +13.9% | +16.0% |
| 2026 | +6.0% | +2.5% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Fund exposure
A structural note: 3.57% of XLU is XEL itself, so the fund partly moves with the stock by construction.
Are XEL and XLU good diversifiers for each other?
To a limited degree. At 0.67 the two still catch most of the same waves, so the pair smooths returns a little without insulating either from a shared selloff.
FAQ
What is the correlation between XEL and XLU?
The XEL/XLU correlation stands at 0.67 on a 3-year window (1 year: 0.85, 5 years: 0.77), computed from weekly returns as of 2026-08-27.
Is XLU a good diversifier for XEL?
To a limited degree. At 0.67 the two still catch most of the same waves, so the pair smooths returns a little without insulating either from a shared selloff.
What does a correlation of 0.67 mean?
On the −1 to +1 scale, 0.67 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/xel-vs-xlu.json
Drop this badge in a README or notebook; it updates with the data:
[](https://www.pairbook.io/pair/xel-vs-xlu/)
The core API is free. Terms and every endpoint in the API documentation.
Related comparisons
Hubs: XEL correlations · XLU correlations
