SPY vs XHS
State Street SPDR S&P 500 ETF Trust vs State Street SPDR S&P Health Care Services ETF
Which is better, SPY or XHS?
Large Cap Blend against Mid Cap Blend.
SPY has a lower expense ratio. SPY led over 3Y, 5Y and the full window, XHS over 1Y. XHS is less concentrated, with 23.2% 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 | XHS |
|---|---|---|
| Expense Ratio | 0.09%Best | 0.35% |
| AUM | $804.7B | $214M |
| Dividend Yield | 0.98% | 0.20% |
| Holdings | 505 | 61 |
| YTD Return | +10.96% | +28.92%Best |
| 1Y Return | +15.52% | +42.48%Best |
| 3Y Return (annualized) | +20.73%Best | +18.14% |
| 5Y Return (annualized) | +12.53%Best | +5.20% |
| Volatility (annualized) | 14.1%Best | 19.4% |
| Max Drawdown | -34.1%Best | -39.4% |
| $10,000 over 5 years | $18,044Best | $12,885 |
| Top 10 Weight | 37.8% | 23.2%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 | Sep 28, 2011 |
Volatility and max drawdown are measured over the window both funds cover: Sep 29, 2011 to Sep 16, 2026 (15 years).
SPY vs XHS 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 years both funds cover.
SPY vs XHS 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 Services ETF (XHS) is an ETF from State Street Investment Management. Over the past year SPY returned +15.52% while XHS returned +42.48%. Year to date, SPY is up 10.96% versus a gain of 28.92% for XHS.
Over three years, SPY compounded at +20.73% per year against +18.14% for XHS; over five years the annualized figures are +12.53% and +5.20% respectively. Across the full 15-year window we track, SPY has the edge at +13.88% annualized vs +12.28%.
Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
XHS has been the more volatile fund, with annualized monthly volatility of 19.4% 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 -39.4% for XHS. Drawdown depth is what each fund did in the worst stretch of the window measured above.
The two funds' monthly returns correlate at 0.71. They usually move together, but the gap leaves some room for diversification.
Fees and Cost Over Time
SPY charges 0.09% per year while XHS 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 0.20% for XHS.
Holdings Overlap
1.7% of SPY's money is in holdings XHS also owns. 26.1% of XHS's money is in holdings SPY also owns.
XHS and SPY share little of their money.
15 positions in common, counted across the 504 positions we hold weights for in SPY and 60 in XHS, against full books of 505 and 61.
What only one of them owns
Measured across the 504 and 60 positions we hold weights for.
SPY holds 482 positions XHS does not, 97.7% of the fund.
Largest: NVDA 8.01%, AAPL 7.26%, MSFT 5.66%, AMZN 3.79%, GOOGL 2.99%
Top Shared Holdings
| Stock | Weight in SPY | Weight in XHS | Difference |
|---|---|---|---|
| UNHUnitedhealth Group, Inc. | 0.55% | 1.57% | 1.02% |
| LHLabcorp Holdings Inc | 0.04% | 2.03% | 1.99% |
| MCKMckesson Corp. | 0.17% | 1.83% | 1.66% |
| CORCencora Inc | 0.10% | 1.89% | 1.79% |
| DGXQuest Diagnostics Inc | 0.04% | 1.93% | 1.89% |
| UHSUniversal Health Services Inc. | 0.01% | 1.93% | 1.92% |
| HCAHca-the Healthcare Co | 0.10% | 1.82% | 1.72% |
| HSICHenry Schein Inc | 0.01% | 1.87% | 1.86% |
| CAHCardinal Health Inc. | 0.09% | 1.78% | 1.69% |
| HUMHumana Inc. | 0.07% | 1.72% | 1.65% |
26.1% of XHS 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 XHS?
SPY has an expense ratio of 0.09% while XHS charges 0.35%. SPY is the cheaper option, by $26 a year on a $10,000 investment.
Which performed better, SPY or XHS?
Over the past year SPY returned +15.52% vs +42.48% for XHS, so XHS leads on 1-year performance. Over the longest common window we track (15 years), SPY annualized +13.88% vs +12.28% for XHS. Past performance does not guarantee future results. This is information, not a recommendation.
Which is riskier, SPY or XHS?
XHS has been the more volatile fund at 19.4% annualized versus 14.1% for SPY. Worst drawdown: SPY -34.1% vs XHS -39.4%.
Should I hold both SPY and XHS?
SPY and XHS have a monthly-return correlation of 0.71, 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 XHS?
26.1% of XHS's money is in holdings SPY also owns. 26.1% of XHS's is in holdings SPY also owns. They hold 15 positions in common, counted across the 504 positions we hold weights for in SPY and 60 in XHS.
Which pays a higher dividend, SPY or XHS?
SPY yields 0.98% while XHS yields 0.20%, so SPY currently pays the higher dividend yield.
Is XHS better than SPY?
SPY has a lower expense ratio. SPY led over 3Y, 5Y and the full window, XHS over 1Y. XHS is less concentrated, with 23.2% 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.