What are XLP and XLU?

XLP and XLU are exchange-traded funds (ETFs) managed by SPDR. XLP tracks the consumer staples sector, while XLU tracks the utilities sector. Both are designed to provide exposure to specific defensive sectors of the stock market, allowing investors to invest in a basket of companies within those sectors.

ETFs are investment funds that hold a diversified basket of assets, such as stocks or bonds, and trade on exchanges like individual stocks. They aim to track the performance of a specific index or sector. Investors can buy and sell ETF shares throughout the trading day at market prices.

What fees do XLP and XLU charge?

Both XLP and XLU have an expense ratio of 0.08%. This means that for every $1,000 invested, $0.80 is deducted annually for fund management expenses. These low costs are a key consideration for long-term investors.

How does the expense ratio impact returns over time?

A lower expense ratio allows more of an investor's return to remain in their account. For example, if both ETFs have the same gross performance, the fund with the lower expense ratio will provide a higher net return, enhancing long-term compounding benefits.

What are the top holdings of XLP?

The top holdings of XLP include Walmart (WMT) at 10.54%, Costco (COST) at 8.80%, Coca-Cola (KO) at 7.57%, Procter & Gamble (PG) at 7.54%, and Philip Morris (PM) at 6.51%. These companies represent significant exposure to consumer staples.

What are the top holdings of XLU?

The top holdings of XLU include NextEra Energy (NEE) at 12.97%, Southern Company (SO) at 7.60%, Duke Energy (DUK) at 7.08%, Constellation Energy (CEG) at 6.49%, and American Electric Power (AEP) at 5.05%. These companies are prominent in the utilities sector.

Do XLP and XLU have overlapping top-10 holdings?

No, XLP and XLU do not share any top-10 holdings. XLP's top holdings are consumer staples, while XLU's top holdings are utility companies. This lack of overlap means the two ETFs provide distinct sector exposures.

What is the dividend yield of XLP and XLU?

XLP has a dividend yield of 2.67%, while XLU has a dividend yield of 2.99%. Both ETFs provide income streams, making them suitable for conservative investors seeking steady cash flow.

Which ETF has higher net assets?

XLU has higher net assets of $21.1 billion, compared to XLP's $13.9 billion. This indicates that XLU is more liquid and widely held, which can be advantageous for investors.

What is the inception date of XLP and XLU?

Both XLP and XLU were established on December 16, 1998. This long operational history demonstrates that they have tracked the performance of their respective sectors for over two decades.

XLP vs XLU

Two funds, one decision: we compare cost, performance and what each ETF actually holds in September 2026.

Compare XLP Consumer Staples Select Sector SPDR and XLU Utilities Select Sector SPDR. This page reviews fees, holdings, dividends and how each fund tracks its market. Both cost 0.08% and focus on distinct defensive sectors, with no shared top-10 holdings. Educational content, not financial advice.

Compare XLP Consumer Staples Select Sector SPDR and XLU Utilities Select Sector SPDR. This page reviews fees, holdings, dividends and how each fund tracks its market. Both cost 0.08% and focus on dist...

Fund Snapshot

Key Fund Metrics

XLP

Metric

XLU

0.08%

Expense Ratio

0.08%

2.67%

Dividend Yield

2.99%

$13.93B

Net Assets

$21.15B

37

Holdings

34

Dec 16, 1998

Inception Date

Dec 16, 1998

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Index Tracked

–

Consumer Defensive

Fund Category

Utilities

Both funds charge the same annual fee.

Shared Top Holdings

These funds do not share any of their top holdings.

Discover More Comparisons

XLP vs XLY

Compare XLP and XLY on fees, holdings, and dividends. Both have 0.08% expense ratios but differ in assets, yields, and sector focus for investors.

FUTY vs XLU

Compare FUTY and XLU, two utility ETFs with identical 0.08% fees. Analyse their asset sizes, dividend yields, top holdings and tracking differences.

VPU vs XLU

VPU vs XLU: two US utility ETFs with the same top 10 holdings. VPU holds 75 stocks for 0.09% a year, XLU holds 34 for 0.08%. Compare fees, yield and size.

Investment Analysis

XLP

Pros

Fund A offers low annual costs with an expense ratio of 0.08 percent and substantial liquidity through its $13.9 billion net asset base.
Inception in December 1998 demonstrates a long operational history and established tracking performance for the consumer staples sector.
The dividend yield of 2.67 percent provides a reliable income stream suitable for conservative investors seeking steady cash flow.

Considerations

Concentration risk exists with the top five holdings comprising over forty percent of the fund's total assets.
Specific index methodology details are not available, limiting transparency regarding exact replication and rebalancing processes.
Performance may lag during economic expansions when growth-oriented sectors outperform defensive consumer staples.

XLU

Pros

Fund B features competitive low costs at 0.08 percent expense ratio alongside robust liquidity from its $21.1 billion net assets.
Established since December 1998, the fund benefits from a proven long-term track record in the utilities sector.
The higher dividend yield of 2.99 percent attracts income-focused investors seeking dependable payments from regulated utilities.

Considerations

Concentration in top holdings like NextEra Energy poses risk if specific utility companies underperform due to regulatory changes.
Exact index tracking methodology is not available, preventing full assessment of replication accuracy and potential tracking errors.
Interest rate sensitivity remains a structural weakness, as rising rates often pressure valuations in the utilities sector.

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