SPY vs XHB
State Street SPDR S&P 500 ETF Trust vs State Street SPDR S&P Homebuilders ETF
Which is better, SPY or XHB?
Large Cap Blend against Mid Cap Blend.
SPY has a lower expense ratio. SPY led over 1Y, 3Y, 5Y and the full window. XHB is less concentrated, with 36.0% of the fund in its ten largest positions against 38.9%.
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 | XHB |
|---|---|---|
| Expense Ratio | 0.09%Best | 0.35% |
| AUM | $777.9B | $1.6B |
| Dividend Yield | 1.00% | 0.94% |
| Holdings | 1,011 | 74 |
| YTD Return | +8.47%Best | -1.25% |
| 1Y Return | +10.88%Best | -1.06% |
| 3Y Return (annualized) | +20.41%Best | +10.82% |
| 5Y Return (annualized) | +10.90%Best | +5.92% |
| Volatility (annualized) | 15.1%Best | 28.0% |
| Max Drawdown | -56.5%Best | -82.3% |
| $10,000 over 5 years | $16,775Best | $13,332 |
| Top 10 Weight | 38.9% | 36.0%Best |
| Fund Family | State Street Investment Management | State Street Investment Management |
| Category | Equity | Equity |
| Style | Large Cap Blend | Mid Cap Blend |
| Inception | Jan 22, 1993 | Jan 31, 2006 |
Volatility and max drawdown are measured over the window both funds cover: Feb 6, 2006 to Nov 6, 2026 (20.7 years).
SPY vs XHB 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 20.7 years both funds cover.
SPY vs XHB Performance
State Street SPDR S&P 500 ETF Trust (SPY) is an ETF from State Street Investment Management and State Street SPDR S&P Homebuilders ETF (XHB) is an ETF from State Street Investment Management. Over the past year SPY returned +10.88% while XHB returned -1.06%. Year to date, SPY is up 8.47% versus a loss of 1.25% for XHB.
Over three years, SPY compounded at +20.41% per year against +10.82% for XHB; over five years the annualized figures are +10.90% and +5.92% respectively. Across the full 21-year window we track, SPY has the edge at +9.25% annualized vs +4.27%.
Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
XHB has been the more volatile fund, with annualized monthly volatility of 28.0% compared with 15.1% 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 -56.5% for SPY and -82.3% for XHB. Drawdown depth is what each fund did in the worst stretch of the window measured above.
The two funds' monthly returns correlate at 0.73. They usually move together, but the gap leaves some room for diversification.
Fees and Cost Over Time
SPY charges 0.09% per year while XHB 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 1.00% against 0.94% for XHB.
Holdings Overlap
1.2% of SPY's money is in holdings XHB also owns. 42.7% of XHB's money is in holdings SPY also owns.
The two portfolios partly overlap.
13 positions in common, counted across the 504 positions we hold weights for in SPY and 34 in XHB, against full books of 1,011 and 74.
What only one of them owns
Our book lists 21 positions for XHB that do not appear in our book for SPY (57.3% of the fund), and 486 for SPY that do not appear in XHB (98.5%).
Some of those will be the same company recorded under a different code in one of the two books, so the real difference in what you would own is no larger than this and may be smaller. We do not name the individual positions here for that reason.
Top Shared Holdings
| Stock | Weight in SPY | Weight in XHB | Difference |
|---|---|---|---|
| ALLEAllegion Plc | 0.02% | 3.86% | 3.84% |
| HDHome Depot Inc | 0.44% | 3.35% | 2.91% |
| MASMasco Corp. | 0.02% | 3.67% | 3.65% |
| WSMWilliams-sonoma Inc | 0.04% | 3.48% | 3.44% |
| LOWLowes Cos., Inc. | 0.16% | 3.35% | 3.19% |
| LENLennar Corp. Class A | 0.02% | 3.44% | 3.42% |
| DHIDr Horton Inc. | 0.05% | 3.36% | 3.31% |
| PHMPultegroup Inc. | 0.03% | 3.37% | 3.34% |
| JCIJohnson Controls Intl Plc | 0.14% | 3.09% | 2.95% |
| NVRNvr Inc. | 0.02% | 3.09% | 3.07% |
42.7% of XHB 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.
Free for up to 10 holdings. No account needed.
Frequently Asked Questions
Which is cheaper, SPY or XHB?
SPY has an expense ratio of 0.09% while XHB charges 0.35%. SPY is the cheaper option, by $26 a year on a $10,000 investment.
Which performed better, SPY or XHB?
Over the past year SPY returned +10.88% vs -1.06% for XHB, so SPY leads on 1-year performance. Over the longest common window we track (21 years), SPY annualized +9.25% vs +4.27% for XHB. Past performance does not guarantee future results. This is information, not a recommendation.
Which is riskier, SPY or XHB?
XHB has been the more volatile fund at 28.0% annualized versus 15.1% for SPY. Worst drawdown: SPY -56.5% vs XHB -82.3%.
Should I hold both SPY and XHB?
SPY and XHB have a monthly-return correlation of 0.73, 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 XHB?
42.7% of XHB's money is in holdings SPY also owns. 42.7% of XHB's is in holdings SPY also owns. They hold 13 positions in common, counted across the 504 positions we hold weights for in SPY and 34 in XHB.
Which pays a higher dividend, SPY or XHB?
SPY yields 1.00% while XHB yields 0.94%, so SPY currently pays the higher dividend yield.
Is XHB better than SPY?
SPY has a lower expense ratio. SPY led over 1Y, 3Y, 5Y and the full window. XHB is less concentrated, with 36.0% of the fund in its ten largest positions against 38.9%. Which one suits a particular account depends on what it is for. This is information, not a recommendation.