MXI vs SPY
iShares Global Materials ETF vs State Street SPDR S&P 500 ETF Trust
Quick Verdict
SPY has a lower expense ratio. MXI delivered stronger 1-year returns. SPY offers more diversification with 505 holdings.
Side-by-Side Comparison
| Metric | MXI | SPY | Winner |
|---|---|---|---|
| Expense Ratio | 0.37% | 0.09% | |
| AUM | $355M | $821.1B | |
| Dividend Yield | 1.70% | 1.01% | |
| Holdings | 114 | 505 | |
| YTD Return | +16.85% | +13.17% | |
| 1Y Return | +30.54% | +21.53% | |
| 3Y Return (annualized) | +15.58% | +22.06% | |
| 5Y Return (annualized) | +8.33% | +13.35% | |
| Volatility (annualized) | 22.0% | 15.3% | |
| Max Drawdown | -68.7% | -56.5% | |
| Fund Family | iShares by BlackRock (US) | State Street Investment Management | |
| Category | Equity | Equity | |
| Inception | Sep 12, 2006 | Jan 22, 1993 |
MXI vs SPY Performance
iShares Global Materials ETF (MXI) is a ETF from iShares by BlackRock (US) and State Street SPDR S&P 500 ETF Trust (SPY) is a ETF from State Street Investment Management. Over the past year MXI returned +30.54% while SPY returned +21.53%. Year to date, MXI is up 16.85% versus a gain of 13.17% for SPY.
Over three years, MXI compounded at +15.58% per year against +22.06% for SPY; over five years the annualized figures are +8.33% and +13.35% respectively. Across the full 20-year window we track, SPY has the edge at +8.82% annualized vs +5.22%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
MXI has been the more volatile fund, with annualized monthly volatility of 22.0% compared with 15.3% for SPY. Lower volatility generally means a smoother ride, though it often comes with lower long-run returns.
The deepest peak-to-trough decline in our data was -68.7% for MXI and -56.5% for SPY. Drawdown depth is worth weighing if you expect to sell during market stress rather than ride it out.
The two funds' monthly returns correlate at 0.79. They usually move together, but the gap leaves some room for diversification.
Fees and Cost Over Time
MXI charges 0.37% per year while SPY charges 0.09%. On a $10,000 position that is $37 vs $9 annually, a gap of $28 per year that compounds over a long holding period. On income, MXI currently yields 1.70% against 1.01% for SPY.
Holdings Overlap
MXI and SPY share 23 holdings out of 574 unique holdings combined, representing a 1.5% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Frequently Asked Questions
Which is cheaper, MXI or SPY?
MXI has an expense ratio of 0.37% while SPY charges 0.09%. SPY is the cheaper option. On a $10,000 investment, that is $28 per year of difference.
Which performed better, MXI or SPY?
Over the past year MXI returned +30.54% vs +21.53% for SPY, so MXI leads on 1-year performance. Over the longest common window we track (20 years), MXI annualized +5.22% vs +8.82% for SPY. Past performance does not guarantee future results.
Which is riskier, MXI or SPY?
MXI has been the more volatile fund at 22.0% annualized versus 15.3% for SPY. Worst drawdown: MXI -68.7% vs SPY -56.5%.
Should I hold both MXI and SPY?
MXI and SPY have a monthly-return correlation of 0.79, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between MXI and SPY?
MXI and SPY share 23 common holdings with a 1.5% weight overlap. Combined, they hold 574 unique securities.
Which pays a higher dividend, MXI or SPY?
MXI yields 1.70% while SPY yields 1.01%, so MXI currently pays the higher dividend yield.
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