SLX vs SPY

Quick Verdict

SPY has a lower expense ratio. SLX delivered stronger 1-year returns. SPY offers more diversification with 505 holdings.

Lower Fees: SPYHigher Returns: SLXMore Diversified: SPY

Side-by-Side Comparison

MetricSLXSPYWinner
Expense Ratio0.55%0.09%
AUM$159M$789.1B
Dividend Yield1.33%1.01%
Holdings43505
YTD Return+25.56%+14.47%
1Y Return+54.77%+21.96%
3Y Return (annualized)+19.55%+21.70%
5Y Return (annualized)+13.82%+13.30%
Volatility (annualized)33.8%15.3%
Max Drawdown-82.1%-56.5%
Fund FamilyVanEckState Street Investment Management
CategoryEquityEquity
InceptionOct 10, 2006Jan 22, 1993

SLX vs SPY Performance

VanEck Steel ETF (SLX) is a ETF from VanEck and State Street SPDR S&P 500 ETF Trust (SPY) is a ETF from State Street Investment Management. Over the past year SLX returned +54.77% while SPY returned +21.96%. Year to date, SLX is up 25.56% versus a gain of 14.47% for SPY.

Over three years, SLX compounded at +19.55% per year against +21.70% for SPY; over five years the annualized figures are +13.82% and +13.30% respectively. Across the full 20-year window we track, SPY has the edge at +8.87% annualized vs +7.77%. Past performance does not guarantee future results.

Risk: Volatility and Drawdowns

SLX has been the more volatile fund, with annualized monthly volatility of 33.8% 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 -82.1% for SLX 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 0.71. They usually move together, but the gap leaves some room for diversification.

Fees and Cost Over Time

SLX charges 0.55% per year while SPY charges 0.09%. On a $10,000 position that is $55 vs $9 annually, a gap of $46 per year that compounds over a long holding period. On income, SLX currently yields 1.33% against 1.01% for SPY.

Holdings Overlap

0.1%overlap

SLX and SPY share 2 holdings out of 540 unique holdings combined, representing a 0.1% weight overlap.

Moderate overlap means holding both could provide meaningful diversification benefits.

Top Shared Holdings

StockWeight in SLXWeight in SPYDifference
NUE6.44%0.08%6.36%
STLD5.54%0.05%5.49%

Frequently Asked Questions

Which is cheaper, SLX or SPY?

SLX has an expense ratio of 0.55% while SPY charges 0.09%. SPY is the cheaper option. On a $10,000 investment, that is $46 per year of difference.

Which performed better, SLX or SPY?

Over the past year SLX returned +54.77% vs +21.96% for SPY, so SLX leads on 1-year performance. Over the longest common window we track (20 years), SLX annualized +7.77% vs +8.87% for SPY. Past performance does not guarantee future results.

Which is riskier, SLX or SPY?

SLX has been the more volatile fund at 33.8% annualized versus 15.3% for SPY. Worst drawdown: SLX -82.1% vs SPY -56.5%.

Should I hold both SLX and SPY?

SLX and SPY have a monthly-return correlation of 0.71, so combining them can provide real diversification depending on your allocation goals.

What is the holdings overlap between SLX and SPY?

SLX and SPY share 2 common holdings with a 0.1% weight overlap. Combined, they hold 540 unique securities.

Which pays a higher dividend, SLX or SPY?

SLX yields 1.33% while SPY yields 1.01%, so SLX currently pays the higher dividend yield.

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