SPY vs XAR
State Street SPDR S&P 500 ETF Trust vs State Street SPDR S&P Aerospace & Defense ETF
Which is better, SPY or XAR?
Large Cap Blend against Mid Cap Growth.
SPY has a lower expense ratio. SPY led over 1Y, XAR over 3Y, 5Y and the full window. XAR is less concentrated, with 31.1% of the fund in its ten largest positions against 38.0%.
MarketXLS is not an investment adviser. This comparison is generated automatically from market data and is for information only. A Best mark means the better reading on that one measure, not a recommendation to buy.
Side-by-Side Comparison
| Metric | SPY | XAR |
|---|---|---|
| Expense Ratio | 0.09%Best | 0.35% |
| AUM | $814.4B | $6.0B |
| Dividend Yield | 1.01% | 0.31% |
| Holdings | 505 | 48 |
| YTD Return | +13.34%Best | +1.07% |
| 1Y Return | +19.97%Best | +17.88% |
| 3Y Return (annualized) | +21.20% | +28.71%Best |
| 5Y Return (annualized) | +12.81% | +16.56%Best |
| Volatility (annualized) | 14.1%Best | 20.3% |
| Max Drawdown | -34.1%Best | -46.7% |
| $10,000 over 5 years | $18,270 | $21,515Best |
| Top 10 Weight | 38.0% | 31.1%Best |
| Fund Family | State Street Investment Management | State Street Investment Management |
| Category | Equity | Equity |
| Style | Large Cap Blend | Mid Cap Growth |
| Inception | Jan 22, 1993 | Sep 28, 2011 |
Volatility and max drawdown are measured over the window both funds cover: Sep 29, 2011 to Sep 4, 2026 (14.9 years).
SPY vs XAR growth
Month-end closes. Both lines start at 0% in the first month shown, so the gap between them is the difference in growth across that window. The full view covers the 14.9 years both funds cover.
SPY vs XAR Performance
State Street SPDR S&P 500 ETF Trust (SPY) is an ETF from State Street Investment Management and State Street SPDR S&P Aerospace & Defense ETF (XAR) is an ETF from State Street Investment Management. Over the past year SPY returned +19.97% while XAR returned +17.88%. Year to date, SPY is up 13.34% versus a gain of 1.07% for XAR.
Over three years, SPY compounded at +21.20% per year against +28.71% for XAR; over five years the annualized figures are +12.81% and +16.56% respectively. Across the full 15-year window we track, XAR has the edge at +16.93% annualized vs +14.08%.
Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
XAR has been the more volatile fund, with annualized monthly volatility of 20.3% compared with 14.1% 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 -34.1% for SPY and -46.7% for XAR. Drawdown depth is what each fund did in the worst stretch of the window measured above.
The two funds' monthly returns correlate at 0.76. They usually move together, but the gap leaves some room for diversification.
Fees and Cost Over Time
SPY charges 0.09% per year while XAR charges 0.35%. On a $10,000 position that is $9 vs $35 annually, a gap of $26 per year that compounds over a long holding period. On income, SPY currently yields 1.01% against 0.31% for XAR.
Holdings Overlap
2.2% of SPY's money is in holdings XAR also owns. 34.8% of XAR's money is in holdings SPY also owns.
The two portfolios partly overlap.
12 positions in common, counted across the 504 positions we hold weights for in SPY and 48 in XAR, against full books of 505 and 48.
What only one of them owns
Measured across the 504 and 48 positions we hold weights for.
SPY holds 484 positions XAR does not, 97.2% of the fund.
Largest: NVDA 7.71%, AAPL 6.83%, MSFT 5.50%, AMZN 4.08%, GOOGL 3.33%
Top Shared Holdings
| Stock | Weight in SPY | Weight in XAR | Difference |
|---|---|---|---|
| GEGeneral Electric Co. | 0.59% | 3.07% | 2.48% |
| RTXRaytheon Co. | 0.44% | 3.19% | 2.75% |
| AXONAxon Enterprise Inc | 0.07% | 3.52% | 3.45% |
| BABoeing Co | 0.28% | 2.94% | 2.66% |
| HWMHowmet Aerospace Inc. | 0.17% | 3.00% | 2.83% |
| LMTLockheed Martin Corp | 0.18% | 2.91% | 2.73% |
| GDGeneral Dynamics Corp. | 0.15% | 2.93% | 2.78% |
| HIIHuntington Ingalls Industries Inc. | 0.02% | 2.90% | 2.88% |
| TDGTransdigm Group Inc. | 0.11% | 2.73% | 2.62% |
| NOCNorthrop Grumman Corp. | 0.11% | 2.64% | 2.53% |
34.8% of XAR is already inside SPY.
You probably hold more than these two. Add the rest and see how much of the whole book is the same companies twice.
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Frequently Asked Questions
Which is cheaper, SPY or XAR?
SPY has an expense ratio of 0.09% while XAR charges 0.35%. SPY is the cheaper option, by $26 a year on a $10,000 investment.
Which performed better, SPY or XAR?
Over the past year SPY returned +19.97% vs +17.88% for XAR, so SPY leads on 1-year performance. Over the longest common window we track (15 years), SPY annualized +14.08% vs +16.93% for XAR. Past performance does not guarantee future results. This is information, not a recommendation.
Which is riskier, SPY or XAR?
XAR has been the more volatile fund at 20.3% annualized versus 14.1% for SPY. Worst drawdown: SPY -34.1% vs XAR -46.7%.
Should I hold both SPY and XAR?
SPY and XAR have a monthly-return correlation of 0.76, so their returns are far enough apart for the mix to behave differently from either one alone. This is information, not a recommendation.
What is the holdings overlap between SPY and XAR?
34.8% of XAR's money is in holdings SPY also owns. 34.8% of XAR's is in holdings SPY also owns. They hold 12 positions in common, counted across the 504 positions we hold weights for in SPY and 48 in XAR.
Which pays a higher dividend, SPY or XAR?
SPY yields 1.01% while XAR yields 0.31%, so SPY currently pays the higher dividend yield.
Is XAR better than SPY?
SPY has a lower expense ratio. SPY led over 1Y, XAR over 3Y, 5Y and the full window. XAR is less concentrated, with 31.1% of the fund in its ten largest positions against 38.0%. Which one suits a particular account depends on what it is for. This is information, not a recommendation.