SPDW vs XLF

Quick Verdict

SPDW has a lower expense ratio. SPDW delivered stronger 1-year returns. SPDW offers more diversification with 2348 holdings.

Lower Fees: SPDWHigher Returns: SPDWMore Diversified: SPDW

Side-by-Side Comparison

MetricSPDWXLFWinner
Expense Ratio0.03%0.08%
AUM$40.0B$56.2B
Dividend Yield3.02%1.51%
Holdings2,44080
YTD Return+17.66%+6.98%
1Y Return+29.00%+12.14%
3Y Return (annualized)+20.29%+20.59%
5Y Return (annualized)+9.83%+10.49%
Volatility (annualized)17.6%21.4%
Max Drawdown-62.2%-83.8%
Fund FamilySPDR State Street Global AdvisorsSPDR State Street Global Advisors
CategoryEquityEquity
InceptionApr 20, 2007Dec 16, 1998

SPDW vs XLF Performance

State Street SPDR Portfolio Developed World ex-US ETF (SPDW) is a ETF from SPDR State Street Global Advisors and State Street Financial Select Sector SPDR ETF (XLF) is a ETF from SPDR State Street Global Advisors. Over the past year SPDW returned +29.00% while XLF returned +12.14%. Year to date, SPDW is up 17.66% versus a gain of 6.98% for XLF.

Over three years, SPDW compounded at +20.29% per year against +20.59% for XLF; over five years the annualized figures are +9.83% and +10.49% respectively. Across the full 19-year window we track, XLF has the edge at +3.73% annualized vs +3.21%. Past performance does not guarantee future results.

Risk: Volatility and Drawdowns

XLF has been the more volatile fund, with annualized monthly volatility of 21.4% compared with 17.6% for SPDW. 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 -62.2% for SPDW and -83.8% for XLF. 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 0.75. They usually move together, but the gap leaves some room for diversification.

Fees and Cost Over Time

SPDW charges 0.03% per year while XLF charges 0.08%. On a $10,000 position that is $3 vs $8 annually, a gap of $5 per year that compounds over a long holding period. On income, SPDW currently yields 3.02% against 1.51% for XLF.

Holdings Overlap

0.1%overlap

SPDW and XLF share 2 holdings out of 2423 unique holdings combined, representing a 0.1% weight overlap.

Moderate overlap means holding both could provide meaningful diversification benefits.

Top Shared Holdings

StockWeight in SPDWWeight in XLFDifference
HBAN0.07%0.46%0.39%
BEN0.01%0.13%0.12%

Frequently Asked Questions

Which is cheaper, SPDW or XLF?

SPDW has an expense ratio of 0.03% while XLF charges 0.08%. SPDW is the cheaper option. On a $10,000 investment, that is $5 per year of difference.

Which performed better, SPDW or XLF?

Over the past year SPDW returned +29.00% vs +12.14% for XLF, so SPDW leads on 1-year performance. Over the longest common window we track (19 years), SPDW annualized +3.21% vs +3.73% for XLF. Past performance does not guarantee future results.

Which is riskier, SPDW or XLF?

XLF has been the more volatile fund at 21.4% annualized versus 17.6% for SPDW. Worst drawdown: SPDW -62.2% vs XLF -83.8%.

Should I hold both SPDW and XLF?

SPDW and XLF have a monthly-return correlation of 0.75, so combining them can provide real diversification depending on your allocation goals.

What is the holdings overlap between SPDW and XLF?

SPDW and XLF share 2 common holdings with a 0.1% weight overlap. Combined, they hold 2423 unique securities.

Which pays a higher dividend, SPDW or XLF?

SPDW yields 3.02% while XLF yields 1.51%, so SPDW currently pays the higher dividend yield.

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