XLU vs LQD — 23-Year Performance Comparison
Utilities vs Investment-Grade Corp Bonds — backtested 2002–2024
XLU wins$56,836 vs $26,647 on $10,000 over 23 years
XLUUtilities
Final value$56,836
CAGR+7.8%
Max drawdown-29.0%
Best year+29% (2014)
Years won16 of 23
LQDInvestment-Grade Corp Bonds
Final value$26,647
CAGR+4.4%
Max drawdown-19.4%
Best year+17% (2019)
Years won7 of 23
Growth of $10,000
2002–2024XLULQD
XLU$56,836
LQD$26,647
50/50 mix$42,379
50/50 blend: $42,379 (+6.5%/yr CAGR)
Splitting equally between XLU and LQD would have landed between the two — slightly lower CAGR than XLU but less volatility. Try a custom split →
Year-by-year: XLU vs LQD
| Year | XLU | LQD | Winner |
|---|---|---|---|
| 2024 | +23.4% | +0.9% | XLU |
| 2023 | -10.2% | +9.4% | LQD |
| 2022 | -0.9% | -17.9% | XLU |
| 2021 | +17.7% | -1.8% | XLU |
| 2020 | -0.6% | +11.0% | LQD |
| 2019 | +26.3% | +17.4% | XLU |
| 2018 | +4.4% | -3.8% | XLU |
| 2017 | +12.1% | +7.1% | XLU |
| 2016 | +16.3% | +6.2% | XLU |
| 2015 | -4.8% | -1.3% | LQD |
| 2014 | +29.0% | +8.2% | XLU |
| 2013 | +13.2% | -2.0% | XLU |
| 2012 | +1.4% | +10.6% | LQD |
| 2011 | +20.0% | +9.7% | XLU |
| 2010 | +5.5% | +9.3% | LQD |
| 2009 | +11.5% | +8.4% | XLU |
| 2008 | -29.0% | +2.4% | LQD |
| 2007 | +20.2% | +3.7% | XLU |
| 2006 | +21.3% | +4.2% | XLU |
| 2005 | +16.5% | +1.2% | XLU |
| 2004 | +23.9% | +5.7% | XLU |
| 2003 | +21.9% | +7.3% | XLU |
| 2002 | -29.0% | +9.9% | LQD |
More comparisons
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