SPY vs XLU
State Street SPDR S&P 500 ETF Trust vs State Street Utilities Select Sector SPDR ETF
Which is better, SPY or XLU?
Large Cap Blend against Large Cap Value.
XLU 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 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 | XLU |
|---|---|---|
| Expense Ratio | 0.09% | 0.08%Best |
| AUM | $804.7B | $22.1B |
| Dividend Yield | 0.98% | 2.70% |
| Holdings | 505 | 34 |
| YTD Return | +12.89%Best | -7.62% |
| 1Y Return | +17.01%Best | -6.81% |
| 3Y Return (annualized) | +22.46%Best | +10.59% |
| 5Y Return (annualized) | +13.01%Best | +6.87% |
| Volatility (annualized) | 15.1%Best | 15.2% |
| Max Drawdown | -56.5% | -55.7%Best |
| $10,000 over 5 years | $18,433Best | $13,941 |
| Top 10 Weight | 37.8%Best | 58.6% |
| 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 24, 2026 (27.8 years).
SPY vs XLU 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 27.8 years both funds cover.
SPY vs XLU Performance
State Street SPDR S&P 500 ETF Trust (SPY) is an ETF from State Street Investment Management and State Street Utilities Select Sector SPDR ETF (XLU) is an ETF from SPDR State Street Global Advisors. Over the past year SPY returned +17.01% while XLU returned -6.81%. Year to date, SPY is up 12.89% versus a loss of 7.62% for XLU.
Over three years, SPY compounded at +22.46% per year against +10.59% for XLU; over five years the annualized figures are +13.01% and +6.87% respectively. Across the full 28-year window we track, SPY has the edge at +7.18% annualized vs +4.18%.
Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
XLU has been the more volatile fund, with annualized monthly volatility of 15.2% 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 -55.7% for XLU. Drawdown depth is what each fund did in the worst stretch of the window measured above.
The two funds' monthly returns correlate at 0.46. They move together some of the time, and apart the rest.
Fees and Cost Over Time
SPY charges 0.09% per year while XLU 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 2.70% for XLU.
Holdings Overlap
2.0% of SPY's money is in holdings XLU also owns. 99.6% of XLU's money is in holdings SPY also owns.
Most of XLU is already inside SPY. Owning both mostly buys the same companies twice.
31 positions in common, counted across the 504 positions we hold weights for in SPY and 32 in XLU, against full books of 505 and 34.
What only one of them owns
Measured across the 504 and 32 positions we hold weights for.
SPY holds 466 positions XLU does not, 97.3% of the fund.
Largest: NVDA 8.01%, AAPL 7.26%, MSFT 5.66%, AMZN 3.79%, GOOGL 2.99%
Top Shared Holdings
| Stock | Weight in SPY | Weight in XLU | Difference |
|---|---|---|---|
| NEENextera Energy Inc | 0.26% | 13.03% | 12.77% |
| SOSouthern Co. | 0.15% | 7.48% | 7.33% |
| DUKDuke Energy Corp | 0.14% | 7.07% | 6.93% |
| CEGConstellation Energy Corporation Com | 0.14% | 6.75% | 6.61% |
| AEPAmerican Electric Power Co Inc | 0.10% | 5.04% | 4.94% |
| DDominion Energy Inc. | 0.09% | 4.40% | 4.31% |
| SRESempra Common Stock | 0.08% | 4.15% | 4.07% |
| ETREntergy Corp. | 0.07% | 3.69% | 3.62% |
| XELXcel Energy Inc. | 0.07% | 3.57% | 3.50% |
| EXCExelon | 0.07% | 3.38% | 3.31% |
99.6% of XLU 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 XLU?
SPY has an expense ratio of 0.09% while XLU charges 0.08%. XLU is the cheaper option, by $1 a year on a $10,000 investment.
Which performed better, SPY or XLU?
Over the past year SPY returned +17.01% vs -6.81% for XLU, so SPY leads on 1-year performance. Over the longest common window we track (28 years), SPY annualized +7.18% vs +4.18% for XLU. Past performance does not guarantee future results. This is information, not a recommendation.
Which is riskier, SPY or XLU?
XLU has been the more volatile fund at 15.2% annualized versus 15.1% for SPY. Worst drawdown: SPY -56.5% vs XLU -55.7%.
Should I hold both SPY and XLU?
SPY and XLU have a monthly-return correlation of 0.46, 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 XLU?
99.6% of XLU's money is in holdings SPY also owns. 99.6% of XLU's is in holdings SPY also owns. They hold 31 positions in common, counted across the 504 positions we hold weights for in SPY and 32 in XLU.
Which pays a higher dividend, SPY or XLU?
SPY yields 0.98% while XLU yields 2.70%, so XLU currently pays the higher dividend yield.
Is XLU better than SPY?
XLU 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 58.6%. Which one suits a particular account depends on what it is for. This is information, not a recommendation.