SPY vs XHE
State Street SPDR S&P 500 ETF Trust vs State Street SPDR S&P Health Care Equipment ETF
Which is better, SPY or XHE?
Large Cap Blend against Mid Cap Growth.
SPY has a lower expense ratio. SPY led over 1Y, 3Y, 5Y and the full window. XHE is less concentrated, with 21.5% of the fund in its ten largest positions against 37.8%.
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 | XHE |
|---|---|---|
| Expense Ratio | 0.09%Best | 0.35% |
| AUM | $804.7B | $179M |
| Dividend Yield | 0.98% | 0.06% |
| Holdings | 505 | 69 |
| YTD Return | +13.81%Best | +6.15% |
| 1Y Return | +16.94%Best | +15.33% |
| 3Y Return (annualized) | +22.84%Best | +6.12% |
| 5Y Return (annualized) | +13.50%Best | -6.45% |
| Volatility (annualized) | 14.2%Best | 18.8% |
| Max Drawdown | -34.1%Best | -49.9% |
| $10,000 over 5 years | $18,836Best | $7,165 |
| Top 10 Weight | 37.8% | 21.5%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 | Jan 26, 2011 |
Volatility and max drawdown are measured over the window both funds cover: Jan 27, 2011 to Sep 22, 2026 (15.7 years).
SPY vs XHE 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 15.7 years both funds cover.
SPY vs XHE Performance
State Street SPDR S&P 500 ETF Trust (SPY) is an ETF from State Street Investment Management and State Street SPDR S&P Health Care Equipment ETF (XHE) is an ETF from State Street Investment Management. Over the past year SPY returned +16.94% while XHE returned +15.33%. Year to date, SPY is up 13.81% versus a gain of 6.15% for XHE.
Over three years, SPY compounded at +22.84% per year against +6.12% for XHE; over five years the annualized figures are +13.50% and -6.45% respectively. Across the full 16-year window we track, SPY has the edge at +12.60% annualized vs +9.62%.
Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
XHE has been the more volatile fund, with annualized monthly volatility of 18.8% compared with 14.2% 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 -49.9% for XHE. Drawdown depth is what each fund did in the worst stretch of the window measured above.
The two funds' monthly returns correlate at 0.70. They usually move together, but the gap leaves some room for diversification.
Fees and Cost Over Time
SPY charges 0.09% per year while XHE 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 0.98% against 0.06% for XHE.
Holdings Overlap
1.5% of SPY's money is in holdings XHE also owns. 29.2% of XHE's money is in holdings SPY also owns.
XHE and SPY share little of their money.
19 positions in common, counted across the 504 positions we hold weights for in SPY and 70 in XHE, against full books of 505 and 69.
What only one of them owns
Our book lists 49 positions for XHE that do not appear in our book for SPY (69.7% of the fund), and 480 for SPY that do not appear in XHE (97.9%).
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 XHE | Difference |
|---|---|---|---|
| ABTAbbott Laboratories | 0.29% | 1.82% | 1.53% |
| BDXBecton Dickinson And Co. | 0.08% | 1.87% | 1.79% |
| BAXBaxter International Inc. | 0.02% | 1.88% | 1.86% |
| RMDResmed Inc. | 0.05% | 1.83% | 1.78% |
| DXCMDexcom Inc. | 0.05% | 1.79% | 1.74% |
| MDTMedtronic Plc Ordinary Shares | 0.18% | 1.66% | 1.48% |
| SYKStryker Corp 3.375 11/25 | 0.17% | 1.54% | 1.37% |
| ZBHZimmer Biomet Holdings | 0.03% | 1.67% | 1.64% |
| GEHCGe Healthcare Technologies Inc | 0.05% | 1.64% | 1.59% |
| STE:IESteris Plc Ordinary Shares | 0.03% | 1.65% | 1.62% |
29.2% of XHE 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 XHE?
SPY has an expense ratio of 0.09% while XHE charges 0.35%. SPY is the cheaper option, by $26 a year on a $10,000 investment.
Which performed better, SPY or XHE?
Over the past year SPY returned +16.94% vs +15.33% for XHE, so SPY leads on 1-year performance. Over the longest common window we track (16 years), SPY annualized +12.60% vs +9.62% for XHE. Past performance does not guarantee future results. This is information, not a recommendation.
Which is riskier, SPY or XHE?
XHE has been the more volatile fund at 18.8% annualized versus 14.2% for SPY. Worst drawdown: SPY -34.1% vs XHE -49.9%.
Should I hold both SPY and XHE?
SPY and XHE have a monthly-return correlation of 0.70, 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 XHE?
29.2% of XHE's money is in holdings SPY also owns. 29.2% of XHE's is in holdings SPY also owns. They hold 19 positions in common, counted across the 504 positions we hold weights for in SPY and 70 in XHE.
Which pays a higher dividend, SPY or XHE?
SPY yields 0.98% while XHE yields 0.06%, so SPY currently pays the higher dividend yield.
Is XHE better than SPY?
SPY has a lower expense ratio. SPY led over 1Y, 3Y, 5Y and the full window. XHE is less concentrated, with 21.5% of the fund in its ten largest positions against 37.8%. Which one suits a particular account depends on what it is for. This is information, not a recommendation.