# How WEC Energy Group (WEC) compares with the whole market and its popular alternatives

> Source: BetterThanSPY research, https://betterthanspy.com/research/wec
> Data as of November 2, 2026. Total returns include reinvested dividends. Past performance does not predict future results; nothing here is investment advice.

## The short answer

- **Returns:** +8.8% a year over the past 5 years, against +11.7% for the S&P 500. $10,000 grew to $27,900 over 10 years, against $42,000 in SPY.
- **Risk:** More volatile than the S&P 500: volatility 19.1% against 17.2%; worst decline in 10 years −32.3% against −33.7%.
- **Better options:** None of its 24 popular alternatives earned more with less volatility over the past 5 years.
- **Track record:** WEC beat the S&P 500 in 14 of 29 full calendar years, and fell less than it in 10 of 10 major crashes.

Built by QuantCommons' quantitative engine, this page is about relative opportunity, not data on WEC alone. It places WEC (WEC Energy Group, Inc.) against 20+ popular alternatives, its neighboring categories and the entire market of over 10,000 U.S.-listed stocks and ETFs, and surfaces what has done better on consistent outperformance, return for the risk taken, behavior in real market crashes and diversification. The result is a clearer view of where WEC stands in the market, and of the alternatives worth a closer look.

Period covered: WEC's full trading record, from October 1986 through October 2026. All returns include reinvested dividends. Data as of November 2, 2026.

## Key findings

- **Right now:** WEC has gained ground while the market slipped, rising 7.9% over the past 3 months while the S&P 500 fell 0.5%. Both WEC and the S&P 500 are within a few percent of a record high.
- **Stock or market?:** WEC held up far better than its industry: it rose 7.9% over the past 3 months while the electric utilities ETF XLU (State Street Utilities Select Sector SPDR ETF) fell 0.8%. The S&P 500 fell 0.5%. WEC rose 15.1% last month as the S&P 500 fell 2.3% and the Nasdaq 100 fell 9.1%.
- **Past 1 to 3 years:** WEC finished behind the S&P 500 in both 2024 and 2025. WEC's 32.3% fall in March 2020 took 8 months to heal. the S&P 500 fell 24.6% over those same dates.
- **Long term:** WEC turned $10,000 into $27,900 over the past decade, against $42,000 in the S&P 500.
- **In a crash:** Across seven sell-offs, WEC has typically lost about 68% as much as the S&P 500.
- **Diversification:** WEC is some diversification, but not a hedge: a correlation of 0.35 with the S&P 500 over 5 years and 0.35 with the total US market, less closely than 59% of stocks worth at least $300 million. Over 10 years, WEC's beta versus the S&P 500 was 0.33: 41% of the S&P 500's gains in rising months and 14% of its losses in falling ones.
- **Better options**
  - **Popular alternatives:** PNW (Pinnacle West Capital), SO (Southern) and ATO (Atmos Energy) earned more than WEC over the past 5 years with similar volatility: PNW returned 15.5% a year at 19.9% volatility, against 8.8% a year at 19.1%.
  - **Nearby categories and themes:** FTS (Fortis, electric utilities) earned more than WEC with less volatility over the past 5 years: 10.0% a year at 16.5% volatility, against 8.8% a year at 19.1%.
  - **Whole market:** 208 of the 3,627 stocks and funds worth at least $500 million earned more than WEC with less volatility over the past 5 years, among them VTI (Vanguard Morningstar Total Stock Market ETF), VOO (Vanguard S&P 500 ETF) and BRK-A (Berkshire Hathaway).

## How much would $10,000 in WEC have grown?

This chart tracks a hypothetical $10,000 investment in WEC over the past 29 years, with dividends reinvested, alongside the same amount in the S&P 500, investments that ended ahead of WEC over the same span and WEC's popular alternatives, among those that traded for the entire period.

- $10,000 invested in WEC at the end of October 1997 would have grown to $248,556 by October 2026, more than the $135,020 it would have become in SPY, an S&P 500 fund.
- Five of the eight other investments on the chart ended ahead of WEC, and AAPL finished highest, at $27,060,956.

## WEC at a glance

This section summarizes the key facts about the stock, its returns over periods from one to ten years and the risk it has carried, with dividends reinvested throughout.

- WEC is trading within 1% of its all-time high.
- WEC's deepest decline since it began trading in 1986 was 45.0%, from October 1998 to March 2000. It took about three years from the low to climb back to its old high.
- Over 29 full calendar years, WEC's best was 2019, when it returned 37.0%, and its worst was 1999, when it lost 34.8%. It lost money in four of those years.

- Type: Stock, Utilities (Regulated Electric)
- Trading since: October 31, 1986
- Market value: $38B
- Volatility (5 years): 19.1%; Sharpe ratio: 0.54
- Worst decline ever: −45.0%, from October 8, 1998 to March 8, 2000; back at its high by May 22, 2003

| Period | WEC total return |
| --- | --- |
| 1 month | +15.1% |
| 3 months | +7.9% |
| 6 months | +2.1% |
| year to date | +12.6% |
| 1 year | +9.3% |
| 3 years | +55.2% |
| 5 years | +52.5% |
| 10 years | +179% |

## WEC against the whole market

Where WEC ranks among every stock and fund, and what across the market has done better.

### How does WEC rank among all stocks?

This section ranks WEC on return, volatility, risk-adjusted return and worst decline against every stock worth at least $300 million with enough history.

- WEC's worst decline of the past 10 years ranks in the top 2% of the 2,183 stocks worth at least $300 million, where the top fell the least.

| Measure | WEC | Rank |
| --- | --- | --- |
| 1-year return | +9.3% | 1,711 of 3,272 (top 53%) |
| 3-year return | +55.2% | 1,454 of 2,999 (top 49%) |
| 5-year return | +52.5% | 1,074 of 2,886 (top 38%) |
| 10-year return | +179% | 997 of 2,186 (top 46%) |
| Volatility, 5 years | 19.1% | 68 of 2,886 (top 3%) |
| Sharpe ratio, 5 years | 0.54 | 814 of 2,886 (top 29%) |
| Worst decline, past 10 years | −32.3% | 35 of 2,183 (top 2%) |

### What has beaten WEC on both return and risk?

Each dot is an investment, placed by how much it earned a year over the past 5 years (higher is better) and how much its price swung, its volatility (further left is calmer).

- Five stocks and 203 ETFs worth at least $500 million sit in the green region: each earned more than WEC over the past 5 years with smaller price swings. That is 6% of the 3,627 screened.
- Among those with at least half WEC's swings, LVHI has the best return for its risk: 17.0% a year at 11.1% volatility, 42% less than WEC's 19.1%, and a Sharpe ratio (return above cash per unit of volatility) of 1.48 against 0.54 for WEC. EPD earned the most, 19.0% a year, while still swinging less than WEC (17.1% against 19.1%).
- None of WEC's popular alternatives made it, but FTS (electric utilities) did: 10.0% a year at 16.5% volatility, 14% less than WEC's 19.1%.

### Is there a better investment than WEC?

The table below lists investments that beat WEC over the past 5 years on at least one of these measures: a higher annual return with lower volatility, a higher annual return at similar volatility, a similar return with lower volatility, a higher Sharpe ratio with a smaller worst decline, a higher total return in most periods from 3 months to 10 years, or smaller losses in recent market crashes.

- Among WEC's popular alternatives, PNW, SO and ATO earned more than WEC over the past 5 years with similar volatility: PNW returned 15.5% a year at 19.9% volatility, against 8.8% a year at 19.1%.
- Looking beyond its popular alternatives, FTS (electric utilities) earned more than WEC with less volatility over the past 5 years: 10.0% a year at 16.5% volatility, against 8.8% a year at 19.1%.
- Across the whole market, 208 of the 3,627 stocks and funds worth at least $500 million earned more than WEC with less volatility over the past 5 years, among them VTI, VOO and BRK-A.

The 15 strongest of 208 investments that beat WEC over the past 5 years, out of 3,627 stocks and funds worth at least $500 million.

| Investment | Group | Annual return (5 years) | Volatility | Sharpe | Worst decline (10 years) | 10Y return | Correlation with WEC | Better on |
| --- | --- | --- | --- | --- | --- | --- | --- | --- |
| WEC: WEC Energy Group, Inc. (this page) |  | +8.8% | 19.1% | 0.54 | −32.3% | +179% |  |  |
| [DFAC](https://betterthanspy.com/research/dfac): Dimensional - US Core Equity 2 ETF | US Total Market | +10.8% | 17.0% | 0.69 | −23.1% | — | 0.40 | Higher return, lower volatility; Higher Sharpe, smaller worst decline; Higher return in most periods |
| FJUL: FT Vest U.S. Equity Buffer ETF - July | US Equity Buffer | +11.0% | 11.0% | 1.01 | −13.1% | — | 0.35 | Higher return, lower volatility; Higher Sharpe, smaller worst decline; Higher return in most periods |
| DFIV: Dimensional - International Value ETF | International Large-Cap Value | +15.0% | 16.4% | 0.94 | −25.4% | — | 0.48 | Higher return, lower volatility; Higher Sharpe, smaller worst decline; Higher return in most periods |
| AVLV: Avantis U.S. Large Cap Value ETF | US Large-Cap Value | +13.7% | 16.9% | 0.85 | −19.5% | — | 0.46 | Higher return, lower volatility; Higher Sharpe, smaller worst decline; Higher return in most periods |
| JAVA: JPMorgan Active Value ETF | US Large-Cap Value | +11.5% | 14.5% | 0.83 | −16.5% | — | 0.54 | Higher return, lower volatility; Higher Sharpe, smaller worst decline; Higher return in most periods |
| BKLC: BNY Mellon US Large Cap Core Equity ETF | US Large-Cap Equity | +12.8% | 17.3% | 0.79 | −26.2% | — | 0.33 | Higher return, lower volatility; Higher Sharpe, smaller worst decline; Higher return in most periods |
| [BRK-A](https://betterthanspy.com/research/brk-a): Berkshire Hathaway Inc. | Insurance | +13.9% | 17.2% | 0.85 | −30.4% | +288% | 0.55 | Higher return, lower volatility; Higher return in most periods |
| QDPL: Pacer Metaurus US Large Cap Dividend Multiplier 400 ETF | US Dividend Equity | +10.9% | 15.0% | 0.76 | −22.6% | — | 0.32 | Higher return, lower volatility; Higher Sharpe, smaller worst decline; Higher return in most periods |
| QVML: Invesco S&P 500 QVM Multi-factor ETF | US Multifactor Equity | +12.1% | 16.6% | 0.78 | −23.5% | — | 0.36 | Higher return, lower volatility; Higher Sharpe, smaller worst decline; Higher return in most periods |
| FTQI: First Trust Nasdaq BuyWrite Income ETF | Nasdaq Options Income | +11.0% | 14.8% | 0.78 | −19.5% | +121% | 0.28 | Higher return, lower volatility; Higher Sharpe, smaller worst decline; Higher return in most periods |
| [JNJ](https://betterthanspy.com/research/jnj): Johnson & Johnson | Pharmaceuticals | +13.4% | 18.0% | 0.80 | −27.4% | +209% | 0.50 | Higher return, lower volatility; Higher return in most periods |
| SIXA: ETC 6 Meridian Mega Cap Equity ETF | US Large-Cap Equity | +12.9% | 12.7% | 1.03 | −18.4% | — | 0.57 | Higher return, lower volatility; Higher Sharpe, smaller worst decline; Higher return in most periods |
| LVHI: Franklin International Low Volatility High Dividend Index ETF | International Dividend Equity | +17.0% | 11.1% | 1.48 | −32.4% | +204% | 0.57 | Higher return, lower volatility; Higher return in most periods |
| [KO](https://betterthanspy.com/research/ko): The Coca-Cola Company | Nonalcoholic Beverages | +14.6% | 16.9% | 0.90 | −37.0% | +211% | 0.60 | Higher return, lower volatility; Higher return in most periods |
| [VIG](https://betterthanspy.com/research/vig): Vanguard Dividend Appreciation ETF | Dividend Growth | +10.5% | 14.1% | 0.78 | −31.7% | +267% | 0.58 | Higher return, lower volatility; Higher return in most periods |

## WEC against its popular alternatives

The investments people most often weigh against WEC, compared period by period and year by year.

### How do WEC's risk and return compare with its alternatives?

This map plots each investment's annual return over the past 5 years against its volatility, the size of its typical price swings.

- Four of the 24 popular alternatives, led by ATO, ED and SO, were both more rewarding and calmer than WEC over the past 5 years, earning a higher annual return with lower volatility.
- Over the past 5 years, WEC returned 8.8% a year, less than the S&P 500's 11.7%, with higher volatility (19.1% against 17.2%).

### Has WEC consistently beaten its popular alternatives?

This section compares WEC with the investments people most often weigh against it, checking each one over eight periods from one month to ten years.

- Two of the 24 popular alternatives, EVRG and PNW, outperformed WEC in at least 3 of 5 short-term and 2 of 3 long-term timeframes.
- ED earned more for the risk it took than WEC (a higher Sharpe ratio) and fell less in its worst decline of the past 10 years.
- ATO outperformed WEC over all three long-term periods but in none of the five short-term ones, so WEC has had the better of it lately.

| Investment | 1Y return | 3Y return | 5Y return | 10Y return | Periods ahead of WEC | Verdict | Sharpe |
| --- | --- | --- | --- | --- | --- | --- | --- |
| WEC: WEC Energy Group, Inc. (this page) | +9.3% | +55.2% | +52.5% | +179% |  |  | 0.54 |
| EVRG: Evergy, Inc. | +15.9% | +91.7% | +65.3% | +118% | 3/5 short-term, 2/3 long-term | consistent | 0.63 |
| PNW: Pinnacle West Capital Corporation | +23.0% | +59.4% | +106% | +111% | 3/5 short-term, 2/3 long-term | consistent | 0.83 |
| [PWR](https://betterthanspy.com/research/pwr): Quanta Services, Inc. | +37.9% | +256% | +419% | +2,124% | 2/5 short-term, 3/3 long-term |  | 1.07 |
| [ETR](https://betterthanspy.com/research/etr): Entergy Corporation | +16.3% | +145% | +152% | +348% | 2/5 short-term, 3/3 long-term |  | 0.94 |
| [AEP](https://betterthanspy.com/research/aep): American Electric Power Company, Inc. | +12.1% | +83.3% | +82.9% | +193% | 2/5 short-term, 3/3 long-term |  | 0.70 |
| ATO: Atmos Energy Corporation | +3.5% | +68.6% | +111% | +212% | 0/5 short-term, 3/3 long-term |  | 0.91 |
| IDA: IDACORP, Inc. | +16.4% | +60.4% | +60.9% | +157% | 2/5 short-term, 2/3 long-term |  | 0.59 |
| [SO](https://betterthanspy.com/research/so): The Southern Company | +4.9% | +49.6% | +81.7% | +184% | 0/5 short-term, 2/3 long-term |  | 0.73 |
| [ED](https://betterthanspy.com/research/ed): Consolidated Edison, Inc. | +26.7% | +45.5% | +84.2% | +125% | 4/5 short-term, 1/3 long-term |  | 0.74 |
| [D](https://betterthanspy.com/research/d): Dominion Energy, Inc. | +20.7% | +89.9% | +12.3% | +40.9% | 3/5 short-term, 1/3 long-term |  | 0.22 |
| LNT: Alliant Energy Corporation | +13.3% | +60.4% | +50.6% | +170% | 2/5 short-term, 1/3 long-term |  | 0.51 |
| [NEE](https://betterthanspy.com/research/nee): NextEra Energy, Inc. | +7.0% | +55.1% | +13.9% | +255% | 0/5 short-term, 1/3 long-term |  | 0.23 |
| [DUK](https://betterthanspy.com/research/duk): Duke Energy Corporation | +7.4% | +59.9% | +51.9% | +147% | 0/5 short-term, 1/3 long-term |  | 0.56 |
| PPL: PPL Corporation | +2.5% | +59.1% | +47.0% | +64.8% | 0/5 short-term, 1/3 long-term |  | 0.50 |
| AWK: American Water Works Company, Inc. | +20.2% | +27.4% | −7.1% | +148% | 4/5 short-term, 0/3 long-term |  | 0.05 |
| AES: The AES Corporation | +14.7% | +11.4% | −27.7% | +90.3% | 2/5 short-term, 0/3 long-term |  | 0.01 |
| FE: FirstEnergy Corp. | +7.6% | +47.6% | +48.6% | +116% | 1/5 short-term, 0/3 long-term |  | 0.51 |
| [EXC](https://betterthanspy.com/research/exc): Exelon Corporation | +4.2% | +27.8% | +44.7% | +181% | 0/5 short-term, 0/3 long-term |  | 0.46 |
| [XEL](https://betterthanspy.com/research/xel): Xcel Energy Inc. | +0.7% | +43.7% | +43.9% | +164% | 0/5 short-term, 0/3 long-term |  | 0.46 |
| [PEG](https://betterthanspy.com/research/peg): Public Service Enterprise Group Incorporated | −5.4% | +29.4% | +37.6% | +157% | 0/5 short-term, 0/3 long-term |  | 0.41 |
| DTE: DTE Energy Company | +5.0% | +52.4% | +41.8% | +139% | 0/5 short-term, 0/3 long-term |  | 0.46 |
| CMS: CMS Energy Corporation | +0.7% | +38.9% | +36.7% | +131% | 0/5 short-term, 0/3 long-term |  | 0.42 |
| ES: Eversource Energy | −2.1% | +47.2% | +0.9% | +85.1% | 0/5 short-term, 0/3 long-term |  | 0.13 |
| POR: Portland General Electric Company | +1.3% | +25.1% | +12.6% | +56.5% | 0/5 short-term, 0/3 long-term |  | 0.22 |

### How did WEC do year by year?

This table shows each investment's total return in every full calendar year since 1997, along with where WEC ranked among its popular alternatives each year.

- WEC finished ahead of the S&P 500 in 14 of its 29 full calendar years, and behind it in each of the last three.
- Among its popular alternatives, ATO came out ahead of WEC most often, in 18 of the 29 years both traded.
- Ranked against its popular alternatives each year, WEC finished in the top quarter in seven of 29 years and in the bottom quarter in five. In 2025, it ranked 11 of 25.

| Year | WEC | SPY |
| --- | --- | --- |
| 2025 | +16.0% | +17.7% |
| 2024 | +16.1% | +24.9% |
| 2023 | −7.0% | +26.2% |
| 2022 | −0.5% | −18.2% |
| 2021 | +8.6% | +28.7% |
| 2020 | +2.5% | +18.3% |
| 2019 | +37.0% | +31.2% |
| 2018 | +7.9% | −4.6% |
| 2017 | +17.1% | +21.7% |
| 2016 | +18.2% | +12.0% |

## Risk and diversification

How WEC has fallen, how it held up in crashes beside the S&P 500 and its popular alternatives, and what moves independently of it.

### What were WEC's worst declines?

A drawdown is the decline from a peak to the lowest point before a new high.

- In four of WEC's five worst declines, the S&P 500 held up better over the same dates.
- Not every decline was the market's doing: WEC fell 45.0% from October 1998 to March 2000, while the S&P 500 rose 43.7%.
- The slowest recovery came after WEC fell 45.0% from October 1998 to March 2000; it did not regain that peak until May 2003, three years later.

| Decline | Peak | Low | Back at the high | SPY over the same dates | Market event |
| --- | --- | --- | --- | --- | --- |
| −45.0% | October 8, 1998 | March 8, 2000 | May 22, 2003 | +43.7% |  |
| −32.3% | March 6, 2020 | March 23, 2020 | November 3, 2020 | −24.6% | Covid crash |
| −26.0% | August 19, 2022 | October 2, 2023 | November 18, 2024 | +3.2% | 2022 bear market |
| −24.4% | December 20, 2007 | March 9, 2009 | December 11, 2009 | −52.2% | 2008 financial crisis |
| −22.0% | November 10, 2020 | February 26, 2021 | April 1, 2022 | +7.9% |  |

### How did WEC do in stock market crashes?

This section measures how far WEC, the S&P 500 and each alternative fell from peak to trough during every major market crash since 2000.

- WEC fell less than the S&P 500 in all ten crashes it has traded through. The clearest case was the 2008 financial crisis, when WEC fell 24.4% and the S&P 500 fell 55.2%.
- None of its popular alternatives fell less than WEC in most of the crashes they both traded through.

| Crash | Dates | WEC fall | SPY fall |
| --- | --- | --- | --- |
| Dot-com bust | March 10, 2000 to October 9, 2002 | −21.3% | −47.5% |
| Global financial crisis | October 9, 2007 to March 9, 2009 | −24.4% | −55.2% |
| Flash crash | May 6, 2010 to May 7, 2010 | −0.6% | −1.5% |
| Euro debt crisis | July 22, 2011 to October 3, 2011 | −12.0% | −17.9% |
| China devaluation & oil rout | August 10, 2015 to February 11, 2016 | −9.6% | −12.8% |
| Volmageddon | February 2, 2018 to February 9, 2018 | −4.0% | −6.5% |
| Q4 2018 selloff | September 21, 2018 to December 24, 2018 | −9.8% | −19.3% |
| COVID crash | February 19, 2020 to March 23, 2020 | −32.3% | −33.7% |
| 2022 bear market | January 4, 2022 to October 12, 2022 | −23.6% | −24.5% |
| SVB / regional bank stress | March 8, 2023 to March 13, 2023 | −1.9% | −3.4% |

### How closely does WEC move with the S&P 500?

Upside capture measures how much of the S&P 500's gains an investment kept in the months the market rose, and downside capture how much of its losses it took in the months the market fell.

- Over the past 10 years, WEC captured 41% of the S&P 500's gains in rising months and 14% of its losses in falling months, with a beta of 0.33. That is a defensive profile: it gave up some of the market's upside in exchange for smaller losses.
- Four of the 24 popular alternatives had a higher capture ratio (upside capture divided by downside capture) than WEC's 2.98, led by ETR, ED and SO.

Measured over the past 10 years of monthly returns against SPY.

| Investment | Upside capture | Downside capture | Beta |
| --- | --- | --- | --- |
| WEC: WEC Energy Group, Inc. (this page) | 41.0% | 14.0% | 0.33 |
| EVRG: Evergy, Inc. | 42.0% | 33.0% | 0.46 |
| PNW: Pinnacle West Capital Corporation | 34.0% | 19.0% | 0.37 |
| [PWR](https://betterthanspy.com/research/pwr): Quanta Services, Inc. | 141% | 65.0% | 1.23 |
| [ETR](https://betterthanspy.com/research/etr): Entergy Corporation | 58.0% | 14.0% | 0.52 |
| [AEP](https://betterthanspy.com/research/aep): American Electric Power Company, Inc. | 44.0% | 17.0% | 0.39 |
| ATO: Atmos Energy Corporation | 58.0% | 42.0% | 0.50 |
| IDA: IDACORP, Inc. | 47.0% | 33.0% | 0.49 |
| [SO](https://betterthanspy.com/research/so): The Southern Company | 41.0% | 12.0% | 0.38 |
| [ED](https://betterthanspy.com/research/ed): Consolidated Edison, Inc. | 31.0% | 9.0% | 0.21 |
| [D](https://betterthanspy.com/research/d): Dominion Energy, Inc. | 43.0% | 65.0% | 0.51 |
| LNT: Alliant Energy Corporation | 50.0% | 36.0% | 0.45 |
| [NEE](https://betterthanspy.com/research/nee): NextEra Energy, Inc. | 62.0% | 41.0% | 0.45 |
| [DUK](https://betterthanspy.com/research/duk): Duke Energy Corporation | 35.0% | 11.0% | 0.32 |
| PPL: PPL Corporation | 52.0% | 71.0% | 0.64 |
| AWK: American Water Works Company, Inc. | 48.0% | 37.0% | 0.43 |
| AES: The AES Corporation | 80.0% | 117% | 0.90 |
| FE: FirstEnergy Corp. | 40.0% | 30.0% | 0.35 |
| [EXC](https://betterthanspy.com/research/exc): Exelon Corporation | 40.0% | 14.0% | 0.36 |
| [XEL](https://betterthanspy.com/research/xel): Xcel Energy Inc. | 41.0% | 16.0% | 0.34 |
| [PEG](https://betterthanspy.com/research/peg): Public Service Enterprise Group Incorporated | 52.0% | 41.0% | 0.52 |
| DTE: DTE Energy Company | 47.0% | 37.0% | 0.50 |
| CMS: CMS Energy Corporation | 35.0% | 16.0% | 0.27 |
| ES: Eversource Energy | 49.0% | 58.0% | 0.52 |
| POR: Portland General Electric Company | 40.0% | 53.0% | 0.45 |

### What diversifies WEC?

Correlation measures how closely two investments move together, on a scale from 1 (in lockstep) through 0 (unrelated) to -1 (in opposite directions).

- Moving a fifth of the money in WEC into DXJ would have cut the portfolio's volatility by 17% over the past 5 years and raised its annual return (+8.9% for WEC alone, +12.6% for the mix).
- CLS made money in three of the four calendar years in which WEC lost money.
- Among large ETFs, DXJ, DBEF and FTLS have moved largely independently of WEC over the past 5 years, with correlations of 0.44 or lower, and each still earned a positive 5-year return.

| Investment | Correlation with WEC | 5Y return | Volatility | Sharpe | Rose in WEC's 4 down years |
| --- | --- | --- | --- | --- | --- |
| DXJ: WisdomTree Japan Hedged Equity Fund | 0.11 | +220% | 19.1% | 1.32 | 2 of 4 |
| DBEF: Xtrackers MSCI EAFE Hedged Equity ETF | 0.44 | +82.4% | 13.8% | 0.94 | 1 of 4 |
| FTLS: First Trust Long/Short Equity ETF | 0.37 | +58.7% | 10.5% | 0.94 | 1 of 4 |
| AMLP: Alerian MLP ETF | 0.35 | +120% | 18.9% | 0.93 | 2 of 4 |
| [XLE](https://betterthanspy.com/research/xle): State Street Energy Select Sector SPDR ETF | 0.39 | +177% | 25.6% | 0.93 | 2 of 4 |
| [GLD](https://betterthanspy.com/research/gld): SPDR Gold Shares | 0.25 | +116% | 19.1% | 0.91 | 2 of 4 |
| [SMH](https://betterthanspy.com/research/smh): VanEck Semiconductor ETF | 0.07 | +274% | 37.2% | 0.90 | 1 of 4 |
| VLUE: iShares MSCI USA Value Factor ETF | 0.35 | +109% | 18.4% | 0.90 | 1 of 4 |

## Common questions

### What was WEC's worst drawdown?

WEC's deepest decline since it began trading in 1986 was 45.0%, from October 1998 to March 2000. It took about three years from the low to climb back to its old high.

### What were WEC's best and worst years?

Over 29 full calendar years, WEC's best year was 2019, when it returned 37.0%. Its worst was 1999, with a return of -34.8%.

### Is there a better investment than WEC?

Among WEC's popular alternatives, PNW, SO and ATO earned more than WEC over the past 5 years with similar volatility: PNW returned 15.5% a year at 19.9% volatility, against 8.8% a year at 19.1%. Looking beyond its popular alternatives, FTS (electric utilities) earned more than WEC with less volatility over the past 5 years: 10.0% a year at 16.5% volatility, against 8.8% a year at 19.1%.

### Is WEC more volatile than the S&P 500?

Yes. WEC's volatility over the past 5 years was 19.1%, 1.1 times the S&P 500's 17.2%. Volatility measures how widely returns swing around their average: in roughly two years out of three, WEC's return lands within 19.1% of its average, either way. The higher it is, the rougher the ride and the harder it is to hold through a slump.

### What is WEC's Sharpe ratio?

WEC's Sharpe ratio over the past 5 years was 0.54, against 0.73 for the S&P 500, so WEC earned less for each unit of risk than an index fund did. The Sharpe ratio is the return earned above cash for each unit of volatility: two investments with the same return are not equal if one got there with far bigger swings.

### How correlated is WEC with the S&P 500?

Over the past 5 years, WEC's monthly returns had a correlation of 0.35 with the S&P 500. Correlation runs from 1 (moving in lockstep) through 0 (unrelated) to −1 (moving in opposite directions). They are only loosely linked, which makes it a real diversifier next to an index fund. In the table, the correlation column measures each option against WEC instead: the lower it is, the more that option would diversify a WEC holding.

### What are the best alternatives to WEC?

Of the 24 popular alternatives we compared, two outperformed WEC in at least 3 of 5 short-term and 2 of 3 long-term timeframes, with dividends reinvested: EVRG and PNW.

### Did WEC outperform the S&P 500?

WEC finished ahead of the S&P 500 (SPY) in 14 of 29 full calendar years. In 2025, it returned +16.0%, against +17.7% for the index.

### How did WEC do in stock market crashes?

WEC fell less than the S&P 500 (SPY) in ten of the ten major crashes it has traded through, and further in no. The clearest case was the 2008 financial crisis, when WEC fell 24.4% and the S&P 500 fell 55.2%.

### What diversifies WEC?

These had a low correlation with WEC over the past 5 years and still earned a positive 5-year return: among large ETFs, DXJ (correlation 0.11), DBEF (correlation 0.44) and FTLS (correlation 0.37); among large stocks, CAH (correlation 0.40), MPC (correlation 0.28) and MCK (correlation 0.37). A correlation near zero means the two have moved largely independently.

## More research

- [Is PWR Better Than the S&P 500 and the Rest of the Market?](https://betterthanspy.com/research/pwr)
- [Is ETR Better Than the S&P 500 and the Rest of the Market?](https://betterthanspy.com/research/etr)
- [Is AEP Better Than the S&P 500 and the Rest of the Market?](https://betterthanspy.com/research/aep)
- [Is SO Better Than the S&P 500 and the Rest of the Market?](https://betterthanspy.com/research/so)
- [Is ED Better Than the S&P 500 and the Rest of the Market?](https://betterthanspy.com/research/ed)
- [Is D Better Than the S&P 500 and the Rest of the Market?](https://betterthanspy.com/research/d)
- [Is NEE Better Than the S&P 500 and the Rest of the Market?](https://betterthanspy.com/research/nee)
- [Is DUK Better Than the S&P 500 and the Rest of the Market?](https://betterthanspy.com/research/duk)
- [Is EXC Better Than the S&P 500 and the Rest of the Market?](https://betterthanspy.com/research/exc)
- [Is XEL Better Than the S&P 500 and the Rest of the Market?](https://betterthanspy.com/research/xel)
- [Is PEG Better Than the S&P 500 and the Rest of the Market?](https://betterthanspy.com/research/peg)
- [Is SCHD Better Than the S&P 500 and the Rest of the Market?](https://betterthanspy.com/research/schd)

## Explore further

- Full page with charts: https://betterthanspy.com/research/wec
- All research pages: https://betterthanspy.com/llms.txt
- Compare the entire market against WEC live: https://betterthanspy.com/?b=WEC