SPY vs XMHQ
State Street SPDR S&P 500 ETF Trust vs Invesco S&P MidCap Quality 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 | XMHQ | Winner |
|---|---|---|---|
| Expense Ratio | 0.09% | 0.25% | |
| AUM | $821.1B | $5.7B | |
| Dividend Yield | 1.01% | 0.57% | |
| Holdings | 505 | 82 | |
| YTD Return | +12.71% | +14.46% | |
| 1Y Return | +20.53% | +14.55% | |
| 3Y Return (annualized) | +21.60% | +15.38% | |
| 5Y Return (annualized) | +12.79% | +10.46% | |
| Volatility (annualized) | 15.3% | 17.6% | |
| Max Drawdown | -56.5% | -58.4% | |
| Fund Family | State Street Investment Management | Invesco (US) | |
| Category | Equity | Equity | |
| Inception | Jan 22, 1993 | Dec 1, 2006 |
SPY vs XMHQ Performance
State Street SPDR S&P 500 ETF Trust (SPY) is a ETF from State Street Investment Management and Invesco S&P MidCap Quality ETF (XMHQ) is a ETF from Invesco (US). Over the past year SPY returned +20.53% while XMHQ returned +14.55%. Year to date, SPY is up 12.71% versus a gain of 14.46% for XMHQ.
Over three years, SPY compounded at +21.60% per year against +15.38% for XMHQ; over five years the annualized figures are +12.79% and +10.46% respectively. Across the full 20-year window we track, SPY has the edge at +8.80% annualized vs +8.70%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
XMHQ has been the more volatile fund, with annualized monthly volatility of 17.6% compared with 15.3% 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 -58.4% for XMHQ. 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 0.90. 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 XMHQ charges 0.25%. On a $10,000 position that is $9 vs $25 annually, a gap of $16 per year that compounds over a long holding period. On income, SPY currently yields 1.01% against 0.57% for XMHQ.
Holdings Overlap
SPY and XMHQ share 0 holdings out of 585 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 XMHQ?
SPY has an expense ratio of 0.09% while XMHQ charges 0.25%. SPY is the cheaper option. On a $10,000 investment, that is $16 per year of difference.
Which performed better, SPY or XMHQ?
Over the past year SPY returned +20.53% vs +14.55% for XMHQ, so SPY leads on 1-year performance. Over the longest common window we track (20 years), SPY annualized +8.80% vs +8.70% for XMHQ. Past performance does not guarantee future results.
Which is riskier, SPY or XMHQ?
XMHQ has been the more volatile fund at 17.6% annualized versus 15.3% for SPY. Worst drawdown: SPY -56.5% vs XMHQ -58.4%.
Should I hold both SPY and XMHQ?
SPY and XMHQ have a monthly-return correlation of 0.90, 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 XMHQ?
SPY and XMHQ share 0 common holdings with a 0.0% weight overlap. Combined, they hold 585 unique securities.
Which pays a higher dividend, SPY or XMHQ?
SPY yields 1.01% while XMHQ yields 0.57%, so SPY currently pays the higher dividend yield.
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