SPY vs XLC
State Street SPDR S&P 500 ETF Trust vs State Street Communication Services Select Sector SPDR ETF
Which is better, SPY or XLC?
Large Cap Blend against Large Cap Growth.
XLC has a lower expense ratio. SPY led over 1Y, 3Y, 5Y and the full window. SPY is less concentrated, with 37.8% of the fund in its ten largest positions against 69.7%.
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 | XLC |
|---|---|---|
| Expense Ratio | 0.09% | 0.08%Best |
| AUM | $804.7B | $22.4B |
| Dividend Yield | 0.98% | 1.28% |
| Holdings | 505 | 26 |
| YTD Return | +13.81%Best | -2.32% |
| 1Y Return | +16.94%Best | -3.39% |
| 3Y Return (annualized) | +22.84%Best | +21.27% |
| 5Y Return (annualized) | +13.50%Best | +8.07% |
| Volatility (annualized) | 16.6%Best | 18.9% |
| Max Drawdown | -34.1%Best | -46.6% |
| $10,000 over 5 years | $18,836Best | $14,741 |
| Top 10 Weight | 37.8%Best | 69.7% |
| Fund Family | State Street Investment Management | SPDR State Street Global Advisors |
| Category | Equity | Equity |
| Style | Large Cap Blend | Large Cap Growth |
| Inception | Jan 22, 1993 | Jun 18, 2018 |
Volatility and max drawdown are measured over the window both funds cover: Jun 19, 2018 to Sep 22, 2026 (8.3 years).
SPY vs XLC 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 8.3 years both funds cover.
SPY vs XLC Performance
State Street SPDR S&P 500 ETF Trust (SPY) is an ETF from State Street Investment Management and State Street Communication Services Select Sector SPDR ETF (XLC) is an ETF from SPDR State Street Global Advisors. Over the past year SPY returned +16.94% while XLC returned -3.39%. Year to date, SPY is up 13.81% versus a loss of 2.32% for XLC.
Over three years, SPY compounded at +22.84% per year against +21.27% for XLC; over five years the annualized figures are +13.50% and +8.07% respectively. Across the full 8-year window we track, SPY has the edge at +14.33% annualized vs +11.19%.
Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
XLC has been the more volatile fund, with annualized monthly volatility of 18.9% compared with 16.6% 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 -46.6% for XLC. Drawdown depth is what each fund did in the worst stretch of the window measured above.
The two funds' monthly returns correlate at 0.87. They usually move together, but the gap leaves some room for diversification.
Fees and Cost Over Time
SPY charges 0.09% per year while XLC 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 0.98% against 1.28% for XLC.
Holdings Overlap
9.5% of SPY's money is in holdings XLC also owns. 99.8% of XLC's money is in holdings SPY also owns.
Most of XLC is already inside SPY. Owning both mostly buys the same companies twice.
24 positions in common, counted across the 504 positions we hold weights for in SPY and 25 in XLC, against full books of 505 and 26.
What only one of them owns
Measured across the 504 and 25 positions we hold weights for.
SPY holds 473 positions XLC does not, 89.8% of the fund.
Largest: NVDA 8.01%, AAPL 7.26%, MSFT 5.66%, AMZN 3.79%, AVGO 2.66%
Top Shared Holdings
| Stock | Weight in SPY | Weight in XLC | Difference |
|---|---|---|---|
| METAMeta Platforms Inc | 1.93% | 17.08% | 15.15% |
| GOOGLAlphabet Inc,class A | 2.99% | 10.24% | 7.25% |
| GOOGAlphabet Inc | 2.39% | 8.18% | 5.79% |
| TBBAt&t Inc | 0.27% | 5.31% | 5.04% |
| VZVerizon Communic | 0.32% | 5.09% | 4.77% |
| NFLXNetflix, Inc. | 0.52% | 4.88% | 4.36% |
| DISWalt Disney Co | 0.28% | 4.80% | 4.52% |
| CMCSAComcast Corp-class A Cmcsa | 0.14% | 4.84% | 4.70% |
| TMUST-Mobile Usa Inc Esrw Usd Npv Ref Sm#585558 | 0.13% | 4.67% | 4.54% |
| WBDWarner Bros. Discovery, Inc | 0.11% | 4.65% | 4.54% |
99.8% of XLC 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 XLC?
SPY has an expense ratio of 0.09% while XLC charges 0.08%. XLC is the cheaper option, by $1 a year on a $10,000 investment.
Which performed better, SPY or XLC?
Over the past year SPY returned +16.94% vs -3.39% for XLC, so SPY leads on 1-year performance. Over the longest common window we track (8 years), SPY annualized +14.33% vs +11.19% for XLC. Past performance does not guarantee future results. This is information, not a recommendation.
Which is riskier, SPY or XLC?
XLC has been the more volatile fund at 18.9% annualized versus 16.6% for SPY. Worst drawdown: SPY -34.1% vs XLC -46.6%.
Should I hold both SPY and XLC?
SPY and XLC have a monthly-return correlation of 0.87, 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 XLC?
99.8% of XLC's money is in holdings SPY also owns. 99.8% of XLC's is in holdings SPY also owns. They hold 24 positions in common, counted across the 504 positions we hold weights for in SPY and 25 in XLC.
Which pays a higher dividend, SPY or XLC?
SPY yields 0.98% while XLC yields 1.28%, so XLC currently pays the higher dividend yield.
Is XLC better than SPY?
XLC has a lower expense ratio. SPY led over 1Y, 3Y, 5Y and the full window. SPY is less concentrated, with 37.8% of the fund in its ten largest positions against 69.7%. Which one suits a particular account depends on what it is for. This is information, not a recommendation.