SPY vs XLFI
State Street SPDR S&P 500 ETF Trust vs State Street Financial Select Sector SPDR Premium Income ETF
Quick Verdict
SPY has a lower expense ratio. SPY delivered stronger 1-year returns. SPY offers more diversification with 505 holdings.
Side-by-Side Comparison
| Metric | SPY | XLFI | Winner |
|---|---|---|---|
| Expense Ratio | 0.09% | 0.35% | |
| AUM | $821.1B | $8M | |
| Dividend Yield | 1.01% | 11.24% | |
| Holdings | 505 | 6 | |
| YTD Return | +12.22% | +4.42% | |
| 1Y Return | +20.83% | +9.44% | |
| 3Y Return (annualized) | +21.70% | - | |
| 5Y Return (annualized) | +12.98% | - | |
| Volatility (annualized) | 15.3% | 9.2% | |
| Max Drawdown | -56.5% | -11.9% | |
| Fund Family | State Street Investment Management | State Street Investment Management | |
| Category | Equity | Equity | |
| Inception | Jan 22, 1993 | Jul 29, 2025 |
SPY vs XLFI Performance
State Street SPDR S&P 500 ETF Trust (SPY) is a ETF from State Street Investment Management and State Street Financial Select Sector SPDR Premium Income ETF (XLFI) is a ETF from State Street Investment Management. Over the past year SPY returned +20.83% while XLFI returned +9.44%. Year to date, SPY is up 12.22% versus a gain of 4.42% for XLFI.
Risk: Volatility and Drawdowns
SPY has been the more volatile fund, with annualized monthly volatility of 15.3% compared with 9.2% for XLFI. 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 -11.9% for XLFI. Drawdown depth is worth weighing if you expect to sell during market stress rather than ride it out.
The two funds' monthly returns correlate at 0.44. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
SPY charges 0.09% per year while XLFI 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 1.01% against 11.24% for XLFI.
Holdings Overlap
SPY and XLFI share 0 holdings out of 505 unique holdings combined, representing a 0.0% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Frequently Asked Questions
Which is cheaper, SPY or XLFI?
SPY has an expense ratio of 0.09% while XLFI charges 0.35%. SPY is the cheaper option. On a $10,000 investment, that is $26 per year of difference.
Which performed better, SPY or XLFI?
Over the past year SPY returned +20.83% vs +9.44% for XLFI, so SPY leads on 1-year performance. Over the longest common window we track (1 years), SPY annualized +8.79% vs +9.79% for XLFI. Past performance does not guarantee future results.
Which is riskier, SPY or XLFI?
SPY has been the more volatile fund at 15.3% annualized versus 9.2% for XLFI. Worst drawdown: SPY -56.5% vs XLFI -11.9%.
Should I hold both SPY and XLFI?
SPY and XLFI have a monthly-return correlation of 0.44, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between SPY and XLFI?
SPY and XLFI share 0 common holdings with a 0.0% weight overlap. Combined, they hold 505 unique securities.
Which pays a higher dividend, SPY or XLFI?
SPY yields 1.01% while XLFI yields 11.24%, so XLFI currently pays the higher dividend yield.
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