SPY vs XLG
State Street SPDR S&P 500 ETF Trust vs Invesco S&P 500 Top 50 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 | XLG | Winner |
|---|---|---|---|
| Expense Ratio | 0.09% | 0.20% | |
| AUM | $821.1B | $11.0B | |
| Dividend Yield | 1.01% | 0.66% | |
| Holdings | 505 | 53 | |
| YTD Return | +12.71% | +5.51% | |
| 1Y Return | +20.53% | +14.26% | |
| 3Y Return (annualized) | +21.60% | +21.96% | |
| 5Y Return (annualized) | +12.79% | +13.52% | |
| Volatility (annualized) | 15.3% | 15.0% | |
| Max Drawdown | -56.5% | -53.8% | |
| Fund Family | State Street Investment Management | Invesco (US) | |
| Category | Equity | Equity | |
| Inception | Jan 22, 1993 | May 4, 2005 |
SPY vs XLG Performance
State Street SPDR S&P 500 ETF Trust (SPY) is a ETF from State Street Investment Management and Invesco S&P 500 Top 50 ETF (XLG) is a ETF from Invesco (US). Over the past year SPY returned +20.53% while XLG returned +14.26%. Year to date, SPY is up 12.71% versus a gain of 5.51% for XLG.
Over three years, SPY compounded at +21.60% per year against +21.96% for XLG; over five years the annualized figures are +12.79% and +13.52% respectively. Across the full 21-year window we track, XLG has the edge at +9.72% annualized vs +8.80%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
SPY has been the more volatile fund, with annualized monthly volatility of 15.3% compared with 15.0% for XLG. 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 -53.8% for XLG. 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 0.97. They move almost in lockstep, so holding both mostly duplicates the same exposure.
Fees and Cost Over Time
SPY charges 0.09% per year while XLG charges 0.20%. On a $10,000 position that is $9 vs $20 annually, a gap of $11 per year that compounds over a long holding period. On income, SPY currently yields 1.01% against 0.66% for XLG.
Holdings Overlap
SPY and XLG share 48 holdings out of 508 unique holdings combined, representing a 59.6% weight overlap.
High overlap means holding both may not provide much additional diversification.
Frequently Asked Questions
Which is cheaper, SPY or XLG?
SPY has an expense ratio of 0.09% while XLG charges 0.20%. SPY is the cheaper option. On a $10,000 investment, that is $11 per year of difference.
Which performed better, SPY or XLG?
Over the past year SPY returned +20.53% vs +14.26% for XLG, so SPY leads on 1-year performance. Over the longest common window we track (21 years), SPY annualized +8.80% vs +9.72% for XLG. Past performance does not guarantee future results.
Which is riskier, SPY or XLG?
SPY has been the more volatile fund at 15.3% annualized versus 15.0% for XLG. Worst drawdown: SPY -56.5% vs XLG -53.8%.
Should I hold both SPY and XLG?
SPY and XLG have a monthly-return correlation of 0.97, so they move almost identically. Holding both adds little diversification - most investors pick one, usually on fees or the specific index tracked.
What is the holdings overlap between SPY and XLG?
SPY and XLG share 48 common holdings with a 59.6% weight overlap. Combined, they hold 508 unique securities.
Which pays a higher dividend, SPY or XLG?
SPY yields 1.01% while XLG yields 0.66%, so SPY currently pays the higher dividend yield.
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