SPY vs XFLT
State Street SPDR S&P 500 ETF Trust vs XAI Octagon Floating Rate & Alternative Income Trust
Which is better, SPY or XFLT?
Large Cap Blend against Bank Loan.
SPY has a lower expense ratio. SPY led over 1Y, 3Y, 5Y and the full window.
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 | XFLT |
|---|---|---|
| Expense Ratio | 0.09%Best | 6.29% |
| AUM | $804.7B | $347M |
| Dividend Yield | 0.98% | 15.04% |
| Holdings | 505 | 509 |
| YTD Return | +12.47%Best | -0.94% |
| 1Y Return | +17.51%Best | -11.58% |
| 3Y Return (annualized) | +21.18%Best | -1.64% |
| 5Y Return (annualized) | +12.88%Best | -0.52% |
| Volatility (annualized) | 16.2%Best | 25.6% |
| Max Drawdown | -34.1%Best | -64.6% |
| $10,000 over 5 years | $18,327Best | $9,743 |
| Fund Family | State Street Investment Management | XA Investments LLC |
| Category | Equity | Fixed Income |
| Style | Large Cap Blend | Bank Loan |
| Inception | Jan 22, 1993 | Sep 27, 2017 |
Not shown on this pair: Top 10 Weight.
Volatility and max drawdown are measured over the window both funds cover: Sep 27, 2017 to Sep 11, 2026 (9 years).
SPY vs XFLT 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 9 years both funds cover.
SPY vs XFLT Performance
State Street SPDR S&P 500 ETF Trust (SPY) is an ETF from State Street Investment Management and XAI Octagon Floating Rate & Alternative Income Trust (XFLT) is an ETF from XA Investments LLC. Over the past year SPY returned +17.51% while XFLT returned -11.58%. Year to date, SPY is up 12.47% versus a loss of 0.94% for XFLT.
Over three years, SPY compounded at +21.18% per year against -1.64% for XFLT; over five years the annualized figures are +12.88% and -0.52% respectively. Across the full 9-year window we track, SPY has the edge at +14.23% annualized vs -1.22%.
Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
XFLT has been the more volatile fund, with annualized monthly volatility of 25.6% compared with 16.2% 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 -64.6% for XFLT. Drawdown depth is what each fund did in the worst stretch of the window measured above.
The two funds' monthly returns correlate at 0.45. They move together some of the time, and apart the rest.
Fees and Cost Over Time
SPY charges 0.09% per year while XFLT charges 6.29%. On a $10,000 position that is $9 vs $629 annually, a gap of $620 per year that compounds over a long holding period. On income, SPY currently yields 0.98% against 15.04% for XFLT.
Holdings Overlap
We hold position weights for 504 holdings in SPY and 150 in XFLT, totalling 100.0% and 46.3% of the two funds. That is not enough of XFLT to divide by, so no overlap percentage is shown here. Within what we can see, 1 positions appear in both.
The two holdings books were reported 126 days apart, SPY as of Aug 4, 2026 and XFLT as of Mar 31, 2026, so some of the difference between them is the time between the two reports rather than the funds.
1 positions in common, counted across the 504 positions we hold weights for in SPY and 150 in XFLT, against full books of 505 and 509.
Top Shared Holdings
| Stock | Weight in SPY | Weight in XFLT | Difference |
|---|---|---|---|
| PPGRram 2023-25A Sub % | 0.04% | 1.15% | 1.11% |
You are not choosing between two funds in isolation.
Whichever of SPY and XFLT you pick has to sit alongside everything else you own. Add the rest and see what the combination actually holds.
Free for up to 10 holdings. No account needed.
Frequently Asked Questions
Which is cheaper, SPY or XFLT?
SPY has an expense ratio of 0.09% while XFLT charges 6.29%. SPY is the cheaper option, by $620 a year on a $10,000 investment.
Which performed better, SPY or XFLT?
Over the past year SPY returned +17.51% vs -11.58% for XFLT, so SPY leads on 1-year performance. Over the longest common window we track (9 years), SPY annualized +14.23% vs -1.22% for XFLT. Past performance does not guarantee future results. This is information, not a recommendation.
Which is riskier, SPY or XFLT?
XFLT has been the more volatile fund at 25.6% annualized versus 16.2% for SPY. Worst drawdown: SPY -34.1% vs XFLT -64.6%.
Should I hold both SPY and XFLT?
SPY and XFLT have a monthly-return correlation of 0.45, so their returns are far enough apart for the mix to behave differently from either one alone. This is information, not a recommendation.
Which pays a higher dividend, SPY or XFLT?
SPY yields 0.98% while XFLT yields 15.04%, so XFLT currently pays the higher dividend yield.
Is XFLT better than SPY?
SPY has a lower expense ratio. SPY led over 1Y, 3Y, 5Y and the full window. Which one suits a particular account depends on what it is for. This is information, not a recommendation.