VPU vs XLU: Yield, Cost and Returns Compared
As of Nov 5, 2026, XLU yields more: 2.79% (dividend yield) against 2.78% for VPU. XLU is cheaper to own at 0.08% a year vs 0.09%. Over the same 18 years (Dec 2007 to Oct 2026), VPU returned 7.7% a year with distributions reinvested, and XLU 7.6%.
XLUState Street Utilities Select Sector SPDR ETF2.79%dividend yield| Compared | VPU | XLU |
|---|---|---|
| YieldDividend yield | 2.78% | 2.79% |
| Expense ratio | 0.09% | 0.08% |
| Total return, 1 yr | −0.1% | +0.3% |
| Total return, 3 yr (a year) | +16.9% | +16.8% |
| Total return, 5 yr (a year) | +8.3% | +8.6% |
| Total return, 10 yr (a year) | +9.0% | +9.2% |
| Worst drop since Dec 2007 | -38.0% | -37.8% |
| Share price since Dec 2007 | +114% | +105% |
| Pays | Quarterly | Quarterly |
| Issuer | Vanguard | State Street Investment Management |
| Assets | $9.9B | $24.3B |
| Started | 2004 | 1998 |
| Type | Utilities | Utilities |
Higher yield
XLU
2.79%
Lower cost
XLU
0.08%
Better total return
VPU
7.7%/yr
Smaller worst drop
XLU
-37.8%
Key facts: VPU vs XLU
Data as of · Source: SmarterDividends data
- As of Nov 5, 2026, VPU yields 2.78% (dividend yield) and XLU yields 2.79% (dividend yield).
- VPU's expense ratio is 0.09% and XLU's is 0.08%: $9 vs $8 a year on $10,000.
- From Dec 2007 to Oct 2026, $10,000 in VPU grew to $40,253 (7.7% a year) and $10,000 in XLU to $39,410 (7.6% a year), distributions reinvested.
- Their worst month-end drops over that time: -38.0% for VPU and -37.8% for XLU.
- 9 of VPU's top ten holdings are also in XLU's top ten, an overlap of at least 49% of the fund.
Cite this page
SmarterDividends, "VPU vs XLU: Yield, Cost and Returns Compared," updated Nov 5, 2026, https://smarterdividends.com/compare/vpu-vs-xlu
$10,000 in each, Dec 2007 to Oct 2026
Distributions reinvested, month-end values, with the S&P 500 for reference.
VPU became
$40,253
7.7% a year
XLU became
$39,410
7.6% a year
Year by year
| Year | VPU | XLU |
|---|---|---|
| 2025 | +16.5% | +16.0% |
| 2024 | +23.0% | +23.3% |
| 2023 | −7.5% | −7.2% |
| 2022 | +1.1% | +1.4% |
| 2021 | +17.4% | +17.7% |
| 2020 | −0.7% | +0.6% |
| 2019 | +24.9% | +26.0% |
| 2018 | +4.4% | +3.9% |
| 2017 | +12.4% | +12.1% |
| 2016 | +17.6% | +16.1% |
| 2015 | −4.8% | −4.9% |
| 2014 | +27.0% | +28.7% |
| 2013 | +14.9% | +13.1% |
| 2012 | +1.8% | +1.0% |
| 2011 | +19.0% | +19.7% |
| 2010 | +7.1% | +5.3% |
| 2009 | +11.3% | +11.6% |
| 2008 | −27.9% | −28.9% |
Total return each calendar year, distributions reinvested.
Top holdings
9 of the top ten overlap, at least 49% of each fund.
VPU
- NEE NextEra Energy Inc11.4%
- SO Southern Co6.7%
- DUK Duke Energy Corp6.4%
- CEG Constellation Energy Corp5.7%
- AEP American Electric Power Co Inc4.7%
- D Dominion Energy Inc3.8%
- SRE Sempra3.7%
- VST Vistra Corp3.4%
- ETR Entergy Corp3.3%
- XEL Xcel Energy Inc3.2%
XLU
- NEE NextEra Energy Inc12.8%
- SO Southern Co7.9%
- DUK Duke Energy Corp7.3%
- CEG Constellation Energy Corp6.3%
- AEP American Electric Power Co Inc5.2%
- D Dominion Energy Inc4.3%
- SRE Sempra4.1%
- ETR Entergy Corp3.8%
- XEL Xcel Energy Inc3.6%
- EXC Exelon Corp3.5%
VPU vs XLU: questions
Is VPU or XLU better?
It depends on the job. XLU pays more today (2.79% vs 2.78%), XLU costs less, and VPU has the better total return over Dec 2007 to Oct 2026, with XLU holding up better in its worst stretch. For income, look at yield and whether the payouts hold up; for growth, total return and drawdowns.
Which pays a higher dividend, VPU or XLU?
XLU, at 2.79% against 2.78% for VPU as of Nov 5, 2026. On $10,000 that's about $279 vs $278 a year at today's rates.
Which has the better total return?
VPU. From Dec 2007 to Oct 2026, it returned 7.7% a year with distributions reinvested, against 7.6% for XLU. $10,000 became $40,253 vs $39,410.
Which is cheaper, VPU or XLU?
XLU, with a 0.08% expense ratio against 0.09%.
Do VPU and XLU hold the same things?
Partly. 9 of their top ten holdings match (NEE, SO, DUK, CEG), at least 49% of each fund. Owning both doubles up on those.
Yields, costs and holdings as each fund reports them (via Yahoo Finance), updated daily; returns from month-end prices with distributions reinvested. XLU leads on 6 of 8 measures above. For information only, not investment advice. Last fund data: Nov 5, 2026.