SPY vs XLP
State Street SPDR S&P 500 ETF Trust vs State Street Consumer Staples Select Sector SPDR ETF
Which is better, SPY or XLP?
Large Cap Blend against Large Cap Value.
XLP 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 62.1%.
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 | XLP |
|---|---|---|
| Expense Ratio | 0.09% | 0.08%Best |
| AUM | $814.4B | $14.6B |
| Dividend Yield | 1.01% | 2.58% |
| Holdings | 505 | 38 |
| YTD Return | +13.34%Best | +10.24% |
| 1Y Return | +19.97%Best | +7.80% |
| 3Y Return (annualized) | +21.20%Best | +8.67% |
| 5Y Return (annualized) | +12.81%Best | +6.05% |
| Volatility (annualized) | 15.1% | 12.4%Best |
| Max Drawdown | -56.5% | -37.8%Best |
| $10,000 over 5 years | $18,270Best | $13,414 |
| Top 10 Weight | 38.0%Best | 62.1% |
| Fund Family | State Street Investment Management | SPDR State Street Global Advisors |
| Category | Equity | Equity |
| Style | Large Cap Blend | Large Cap Value |
| Inception | Jan 22, 1993 | Dec 16, 1998 |
Volatility and max drawdown are measured over the window both funds cover: Dec 22, 1998 to Sep 4, 2026 (27.7 years).
SPY vs XLP 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 XLP Performance
State Street SPDR S&P 500 ETF Trust (SPY) is an ETF from State Street Investment Management and State Street Consumer Staples Select Sector SPDR ETF (XLP) is an ETF from SPDR State Street Global Advisors. Over the past year SPY returned +19.97% while XLP returned +7.80%. Year to date, SPY is up 13.34% versus a gain of 10.24% for XLP.
Over three years, SPY compounded at +21.20% per year against +8.67% for XLP; over five years the annualized figures are +12.81% and +6.05% respectively. Across the full 28-year window we track, SPY has the edge at +7.21% annualized vs +4.82%.
Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
SPY has been the more volatile fund, with annualized monthly volatility of 15.1% compared with 12.4% for XLP. 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 -37.8% for XLP. Drawdown depth is what each fund did in the worst stretch of the window measured above.
The two funds' monthly returns correlate at 0.61. They move together some of the time, and apart the rest.
Fees and Cost Over Time
SPY charges 0.09% per year while XLP 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 2.58% for XLP.
Holdings Overlap
4.5% of SPY's money is in holdings XLP also owns. 99.8% of XLP's money is in holdings SPY also owns.
Most of XLP is already inside SPY. Owning both mostly buys the same companies twice.
34 positions in common, counted across the 504 positions we hold weights for in SPY and 35 in XLP, against full books of 505 and 38.
What only one of them owns
Measured across the 504 and 35 positions we hold weights for.
SPY holds 462 positions XLP does not, 94.9% of the fund.
Largest: NVDA 7.71%, AAPL 6.83%, MSFT 5.50%, AMZN 4.08%, GOOGL 3.33%
Top Shared Holdings
| Stock | Weight in SPY | Weight in XLP | Difference |
|---|---|---|---|
| WMTWalmart, Inc. | 0.73% | 10.45% | 9.72% |
| COSTCostco Wholesale Corp. | 0.63% | 8.96% | 8.33% |
| PGProcter & Gamble Company | 0.52% | 7.23% | 6.71% |
| KOCoca-Cola Co. (The) | 0.50% | 7.18% | 6.68% |
| PMPhilip Morris International Inc. | 0.44% | 6.29% | 5.85% |
| CLColgate-Palmolive Co | 0.11% | 4.68% | 4.57% |
| PEPPepsico Inc. | 0.29% | 4.35% | 4.06% |
| MDLZMondelez International Inc Com A Npv | 0.12% | 4.40% | 4.28% |
| TGTTarget Corp-1477 | 0.10% | 4.32% | 4.22% |
| MOAltria Group Inc | 0.17% | 4.22% | 4.05% |
99.8% of XLP 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 XLP?
SPY has an expense ratio of 0.09% while XLP charges 0.08%. XLP is the cheaper option, by $1 a year on a $10,000 investment.
Which performed better, SPY or XLP?
Over the past year SPY returned +19.97% vs +7.80% for XLP, so SPY leads on 1-year performance. Over the longest common window we track (28 years), SPY annualized +7.21% vs +4.82% for XLP. Past performance does not guarantee future results. This is information, not a recommendation.
Which is riskier, SPY or XLP?
SPY has been the more volatile fund at 15.1% annualized versus 12.4% for XLP. Worst drawdown: SPY -56.5% vs XLP -37.8%.
Should I hold both SPY and XLP?
SPY and XLP have a monthly-return correlation of 0.61, 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 XLP?
99.8% of XLP's money is in holdings SPY also owns. 99.8% of XLP's is in holdings SPY also owns. They hold 34 positions in common, counted across the 504 positions we hold weights for in SPY and 35 in XLP.
Which pays a higher dividend, SPY or XLP?
SPY yields 1.01% while XLP yields 2.58%, so XLP currently pays the higher dividend yield.
Is XLP better than SPY?
XLP 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 62.1%. Which one suits a particular account depends on what it is for. This is information, not a recommendation.