SPY vs XONE

Quick Verdict

XONE has a lower expense ratio. SPY delivered stronger 1-year returns. SPY offers more diversification with 503 holdings.

Lower Fees: XONEHigher Returns: SPYMore Diversified: SPY

Side-by-Side Comparison

MetricSPYXONEWinner
Expense Ratio0.09%0.03%
AUM$789.1B$821M
Dividend Yield1.01%4.09%
Holdings50555
YTD Return+13.68%+1.44%
1Y Return+21.53%+3.26%
3Y Return (annualized)+21.44%+4.42%
5Y Return (annualized)+13.18%-
Volatility (annualized)15.3%0.8%
Max Drawdown-56.5%-0.4%
Fund FamilyState Street Investment ManagementBondBloxx
CategoryEquityFixed Income
InceptionJan 22, 1993Sep 13, 2022

SPY vs XONE Performance

State Street SPDR S&P 500 ETF Trust (SPY) is a ETF from State Street Investment Management and BondBloxx Bloomberg One Year Target Duration US Treasury ETF (XONE) is a ETF from BondBloxx. Over the past year SPY returned +21.53% while XONE returned +3.26%. Year to date, SPY is up 13.68% versus a gain of 1.44% for XONE.

Over three years, SPY compounded at +21.44% per year against +4.42% for XONE. Across the full 4-year window we track, SPY has the edge at +8.85% annualized vs +4.11%. 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 0.8% for XONE. 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 -0.4% for XONE. 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 0.10. They move independently enough that combining them can meaningfully diversify a portfolio.

Fees and Cost Over Time

SPY charges 0.09% per year while XONE charges 0.03%. On a $10,000 position that is $9 vs $3 annually, a gap of $6 per year that compounds over a long holding period. On income, SPY currently yields 1.01% against 4.09% for XONE.

Holdings Overlap

0.0%overlap

SPY and XONE share 0 holdings out of 553 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 XONE?

SPY has an expense ratio of 0.09% while XONE charges 0.03%. XONE is the cheaper option. On a $10,000 investment, that is $6 per year of difference.

Which performed better, SPY or XONE?

Over the past year SPY returned +21.53% vs +3.26% for XONE, so SPY leads on 1-year performance. Over the longest common window we track (4 years), SPY annualized +8.85% vs +4.11% for XONE. Past performance does not guarantee future results.

Which is riskier, SPY or XONE?

SPY has been the more volatile fund at 15.3% annualized versus 0.8% for XONE. Worst drawdown: SPY -56.5% vs XONE -0.4%.

Should I hold both SPY and XONE?

SPY and XONE have a monthly-return correlation of 0.10, so combining them can provide real diversification depending on your allocation goals.

What is the holdings overlap between SPY and XONE?

SPY and XONE share 0 common holdings with a 0.0% weight overlap. Combined, they hold 553 unique securities.

Which pays a higher dividend, SPY or XONE?

SPY yields 1.01% while XONE yields 4.09%, so XONE currently pays the higher dividend yield.

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