Share-split context: A forward split was recorded on Dec 5, 2025 with coefficient 2. A forward split turns each old share into multiple new shares and lowers the quoted price per share proportionally. Proportional ownership is unchanged at the split moment, so the split itself creates neither a gain nor a loss. The price-return figures in this report are already split-adjusted.

What this ETF is trying to do

The STATE STREET(R) UTILITIES SELECT SECTOR SPDR(R) ETF (XLU) is designed to track the utilities sector. This means it invests in companies that provide essential services like electricity, gas, and water. The fund holds 34 total holdings, including major companies such as NextEra Energy Inc, Southern Co, and Duke Energy Corp.

What the numbers show

When looking at XLU, it is important to understand the difference between price return and total return. Price return only tracks how much the share price has changed. Total return includes both the price change and the money paid out through distributions.

• Year-to-Date (YTD): The price return is approximately -3.61%, while the total return is approximately -1.60%.

• One-Year: The price return is approximately -8.74%, while the total return is approximately -6.14%.

• Three-Year: The price return is approximately 43.76%, while the total return is approximately 57.14%.

• Five-Year: The five-year total return is approximately 46.48%.

This ETF has a history of forward splits. The most recent event was on December 5, 2025, where a split coefficient of 2 was used. In a forward split, each old share becomes multiple new shares. This causes the per-share price to fall proportionally, but it does not change how much of the company you own.

Income and distribution explanation

XLU provides regular cash payments to investors. The distribution yield is approximately 2.95%. This number describes the cash distributions relative to the current ETF price. The fund usually pays out on a quarterly basis, with 4 payments recorded over the last 12 months.

It is important to remember that a distribution yield is not the same as total return. While distributions provide cash income, they do not guarantee that your original investment will stay the same value.

NAV erosion explanation

"NAV erosion" refers to a decline in the Net Asset Value (the actual value of the assets held by the fund). The supplied data is sufficient to evaluate price erosion, but it does not include enough historical NAV-per-share data to confirm or rule out NAV erosion.

Regarding price erosion, the fund has an erosion-risk score of 75, which is labeled as "Mild price erosion." This is a measurement of price-based trends and is not a "severe erosion-risk flag," as that flag is currently false for this ETF.

Pros

• Strong Long-Term Returns: The three-year total return has been approximately 57.14%.

• Income Generation: The fund offers a distribution yield of approximately 2.95% and has an income rating grade of "B."

Cons

• Recent Price Declines: The one-year price return has been negative, at approximately -8.74%.

• Mild Price Erosion: The fund shows a mild erosion-risk score.

Beginner takeaway

XLU focuses on the utilities sector and provides quarterly income. While it has seen some recent share-price declines, its three-year total return shows significant growth. Investors should remember that high yields are not the same as total returns, and price changes can happen even when a fund pays out cash.