SPY vs XLY
State Street SPDR S&P 500 ETF Trust vs State Street Consumer Discretionary Select Sector SPDR ETF
Which is better, SPY or XLY?
Large Cap Blend against Large Cap Growth.
XLY has a lower expense ratio. SPY led over 1Y, 3Y and 5Y, XLY over the full window. SPY is less concentrated, with 37.8% of the fund in its ten largest positions against 68.5%.
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 | XLY |
|---|---|---|
| Expense Ratio | 0.09% | 0.08%Best |
| AUM | $804.7B | $22.9B |
| Dividend Yield | 0.98% | 0.77% |
| Holdings | 505 | 50 |
| YTD Return | +12.89%Best | -6.41% |
| 1Y Return | +17.01%Best | -7.36% |
| 3Y Return (annualized) | +22.46%Best | +11.71% |
| 5Y Return (annualized) | +13.01%Best | +4.42% |
| Volatility (annualized) | 15.1%Best | 19.2% |
| Max Drawdown | -56.5%Best | -60.1% |
| $10,000 over 5 years | $18,433Best | $12,414 |
| Top 10 Weight | 37.8%Best | 68.5% |
| 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 | 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 XLY 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 XLY Performance
State Street SPDR S&P 500 ETF Trust (SPY) is an ETF from State Street Investment Management and State Street Consumer Discretionary Select Sector SPDR ETF (XLY) is an ETF from SPDR State Street Global Advisors. Over the past year SPY returned +17.01% while XLY returned -7.36%. Year to date, SPY is up 12.89% versus a loss of 6.41% for XLY.
Over three years, SPY compounded at +22.46% per year against +11.71% for XLY; over five years the annualized figures are +13.01% and +4.42% respectively. Across the full 28-year window we track, XLY has the edge at +8.26% annualized vs +7.18%.
Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
XLY has been the more volatile fund, with annualized monthly volatility of 19.2% 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 -60.1% for XLY. 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 XLY 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 0.77% for XLY.
Holdings Overlap
9.0% of SPY's money is in holdings XLY also owns. 99.9% of XLY's money is in holdings SPY also owns.
Most of XLY is already inside SPY. Owning both mostly buys the same companies twice.
47 positions in common, counted across the 504 positions we hold weights for in SPY and 48 in XLY, against full books of 505 and 50.
What only one of them owns
Measured across the 504 and 48 positions we hold weights for.
SPY holds 450 positions XLY does not, 90.3% of the fund.
Largest: NVDA 8.01%, AAPL 7.26%, MSFT 5.66%, GOOGL 2.99%, AVGO 2.66%
Top Shared Holdings
| Stock | Weight in SPY | Weight in XLY | Difference |
|---|---|---|---|
| AMZNAmazon.Com Inc | 3.79% | 24.36% | 20.57% |
| TSLATesla Inc | 1.52% | 17.05% | 15.53% |
| HDHome Depot Inc/The | 0.48% | 5.42% | 4.94% |
| MCDMcdonald'S Corp | 0.28% | 4.11% | 3.83% |
| BKNGBooking Holdings, Inc. | 0.23% | 3.87% | 3.64% |
| TJXTjx Cos Inc | 0.22% | 3.54% | 3.32% |
| SBUXStarbucks Corp | 0.18% | 3.09% | 2.91% |
| LOWLowes Cos., Inc. | 0.17% | 2.86% | 2.69% |
| DASHDoordash Inc - A | 0.13% | 2.18% | 2.05% |
| GMGeneral Motors Co | 0.12% | 1.97% | 1.85% |
99.9% of XLY 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 XLY?
SPY has an expense ratio of 0.09% while XLY charges 0.08%. XLY is the cheaper option, by $1 a year on a $10,000 investment.
Which performed better, SPY or XLY?
Over the past year SPY returned +17.01% vs -7.36% for XLY, so SPY leads on 1-year performance. Over the longest common window we track (28 years), SPY annualized +7.18% vs +8.26% for XLY. Past performance does not guarantee future results. This is information, not a recommendation.
Which is riskier, SPY or XLY?
XLY has been the more volatile fund at 19.2% annualized versus 15.1% for SPY. Worst drawdown: SPY -56.5% vs XLY -60.1%.
Should I hold both SPY and XLY?
SPY and XLY 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 XLY?
99.9% of XLY's money is in holdings SPY also owns. 99.9% of XLY's is in holdings SPY also owns. They hold 47 positions in common, counted across the 504 positions we hold weights for in SPY and 48 in XLY.
Which pays a higher dividend, SPY or XLY?
SPY yields 0.98% while XLY yields 0.77%, so SPY currently pays the higher dividend yield.
Is XLY better than SPY?
XLY has a lower expense ratio. SPY led over 1Y, 3Y and 5Y, XLY over the full window. SPY is less concentrated, with 37.8% of the fund in its ten largest positions against 68.5%. Which one suits a particular account depends on what it is for. This is information, not a recommendation.