SPY vs XLB
State Street SPDR S&P 500 ETF Trust vs State Street Materials Select Sector SPDR ETF
Which is better, SPY or XLB?
SPY has been ahead.
XLB has a lower expense ratio. SPY led over 1Y, 3Y, 5Y and the full window. SPY is less concentrated, with 38.0% of the fund in its ten largest positions against 58.6%.
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 | XLB |
|---|---|---|
| Expense Ratio | 0.09% | 0.08%Best |
| AUM | $814.4B | $8.7B |
| Dividend Yield | 1.01% | 1.68% |
| Holdings | 505 | 29 |
| YTD Return | +12.71% | +13.54%Best |
| 1Y Return | +19.36%Best | +14.92% |
| 3Y Return (annualized) | +21.09%Best | +10.26% |
| 5Y Return (annualized) | +12.69%Best | +6.43% |
| Volatility (annualized) | 15.1%Best | 20.7% |
| Max Drawdown | -56.5%Best | -60.7% |
| $10,000 over 5 years | $18,173Best | $13,656 |
| Top 10 Weight | 38.0%Best | 58.6% |
| Fund Family | State Street Investment Management | SPDR State Street Global Advisors |
| Category | Equity | Equity |
| Style | Large Cap Blend | Large Cap Blend |
| Inception | Jan 22, 1993 | Dec 16, 1998 |
Volatility and max drawdown are measured over the window both funds cover: Dec 22, 1998 to Sep 8, 2026 (27.7 years).
SPY vs XLB 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 27.7 years both funds cover.
SPY vs XLB Performance
State Street SPDR S&P 500 ETF Trust (SPY) is an ETF from State Street Investment Management and State Street Materials Select Sector SPDR ETF (XLB) is an ETF from SPDR State Street Global Advisors. Over the past year SPY returned +19.36% while XLB returned +14.92%. Year to date, SPY is up 12.71% versus a gain of 13.54% for XLB.
Over three years, SPY compounded at +21.09% per year against +10.26% for XLB; over five years the annualized figures are +12.69% and +6.43% respectively. Across the full 28-year window we track, SPY has the edge at +7.18% annualized vs +6.38%.
Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
XLB has been the more volatile fund, with annualized monthly volatility of 20.7% 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 -60.7% for XLB. Drawdown depth is what each fund did in the worst stretch of the window measured above.
The two funds' monthly returns correlate at 0.80. They usually move together, but the gap leaves some room for diversification.
Fees and Cost Over Time
SPY charges 0.09% per year while XLB charges 0.08%. On a $10,000 position that is $9 vs $8 annually, a gap of $1 per year that compounds over a long holding period. On income, SPY currently yields 1.01% against 1.68% for XLB.
Holdings Overlap
1.8% of SPY's money is in holdings XLB also owns. 99.8% of XLB's money is in holdings SPY also owns.
Most of XLB is already inside SPY. Owning both mostly buys the same companies twice.
25 positions in common, counted across the 503 positions we hold weights for in SPY and 26 in XLB, against full books of 505 and 29.
What only one of them owns
Our book lists 1 positions for XLB that do not appear in our book for SPY (0.1% of the fund), and 471 for SPY that do not appear in XLB (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 XLB | Difference |
|---|---|---|---|
| LINLinde Plc Ordinary Shares | 0.34% | 13.11% | 12.77% |
| NEMNewmont Corp. | 0.16% | 6.98% | 6.82% |
| FCX:ARFreeport-mcmoran Inc. (class B) | 0.15% | 5.79% | 5.64% |
| SHWSherwin Williams Co | 0.12% | 5.24% | 5.12% |
| ECLEcolab, Inc. | 0.11% | 4.78% | 4.67% |
| APDAir Products & Chemicals In | 0.10% | 4.73% | 4.63% |
| NUENucor Corp. | 0.09% | 4.69% | 4.60% |
| VMCVulcan Materials Co. | 0.06% | 4.50% | 4.44% |
| CTVACorteva Inc. | 0.08% | 4.44% | 4.36% |
| C1RH34:IECrh Plc | 0.10% | 4.33% | 4.23% |
99.8% of XLB 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 XLB?
SPY has an expense ratio of 0.09% while XLB charges 0.08%. XLB is the cheaper option, by $1 a year on a $10,000 investment.
Which performed better, SPY or XLB?
Over the past year SPY returned +19.36% vs +14.92% for XLB, so SPY leads on 1-year performance. Over the longest common window we track (28 years), SPY annualized +7.18% vs +6.38% for XLB. Past performance does not guarantee future results. This is information, not a recommendation.
Which is riskier, SPY or XLB?
XLB has been the more volatile fund at 20.7% annualized versus 15.1% for SPY. Worst drawdown: SPY -56.5% vs XLB -60.7%.
Should I hold both SPY and XLB?
SPY and XLB have a monthly-return correlation of 0.80, 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 XLB?
99.8% of XLB's money is in holdings SPY also owns. 99.8% of XLB's is in holdings SPY also owns. They hold 25 positions in common, counted across the 503 positions we hold weights for in SPY and 26 in XLB.
Which pays a higher dividend, SPY or XLB?
SPY yields 1.01% while XLB yields 1.68%, so XLB currently pays the higher dividend yield.
Is XLB better than SPY?
XLB has a lower expense ratio. SPY led over 1Y, 3Y, 5Y and the full window. SPY is less concentrated, with 38.0% of the fund in its ten largest positions against 58.6%. Which one suits a particular account depends on what it is for. This is information, not a recommendation.