SPY vs XPH
State Street SPDR S&P 500 ETF Trust vs State Street SPDR S&P Pharmaceuticals ETF
Quick Verdict
SPY has a lower expense ratio. XPH delivered stronger 1-year returns. SPY offers more diversification with 503 holdings.
Side-by-Side Comparison
| Metric | SPY | XPH | Winner |
|---|---|---|---|
| Expense Ratio | 0.09% | 0.35% | |
| AUM | $789.1B | $479M | |
| Dividend Yield | 1.01% | 0.51% | |
| Holdings | 505 | 67 | |
| YTD Return | +13.39% | +26.59% | |
| 1Y Return | +22.52% | +60.86% | |
| 3Y Return (annualized) | +21.36% | +18.34% | |
| 5Y Return (annualized) | +13.19% | +8.51% | |
| Volatility (annualized) | 15.3% | 19.4% | |
| Max Drawdown | -56.5% | -52.7% | |
| Fund Family | State Street Investment Management | State Street Investment Management | |
| Category | Equity | Equity | |
| Inception | Jan 22, 1993 | Jun 19, 2006 |
SPY vs XPH Performance
State Street SPDR S&P 500 ETF Trust (SPY) is a ETF from State Street Investment Management and State Street SPDR S&P Pharmaceuticals ETF (XPH) is a ETF from State Street Investment Management. Over the past year SPY returned +22.52% while XPH returned +60.86%. Year to date, SPY is up 13.39% versus a gain of 26.59% for XPH.
Over three years, SPY compounded at +21.36% per year against +18.34% for XPH; over five years the annualized figures are +13.19% and +8.51% respectively. Across the full 20-year window we track, SPY has the edge at +8.84% annualized vs +8.05%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
XPH has been the more volatile fund, with annualized monthly volatility of 19.4% 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 -52.7% for XPH. 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 0.64. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
SPY charges 0.09% per year while XPH charges 0.35%. On a $10,000 position that is $9 vs $35 annually, a gap of $26 per year that compounds over a long holding period. On income, SPY currently yields 1.01% against 0.51% for XPH.
Holdings Overlap
SPY and XPH share 7 holdings out of 556 unique holdings combined, representing a 3.4% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Frequently Asked Questions
Which is cheaper, SPY or XPH?
SPY has an expense ratio of 0.09% while XPH charges 0.35%. SPY is the cheaper option. On a $10,000 investment, that is $26 per year of difference.
Which performed better, SPY or XPH?
Over the past year SPY returned +22.52% vs +60.86% for XPH, so XPH leads on 1-year performance. Over the longest common window we track (20 years), SPY annualized +8.84% vs +8.05% for XPH. Past performance does not guarantee future results.
Which is riskier, SPY or XPH?
XPH has been the more volatile fund at 19.4% annualized versus 15.3% for SPY. Worst drawdown: SPY -56.5% vs XPH -52.7%.
Should I hold both SPY and XPH?
SPY and XPH have a monthly-return correlation of 0.64, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between SPY and XPH?
SPY and XPH share 7 common holdings with a 3.4% weight overlap. Combined, they hold 556 unique securities.
Which pays a higher dividend, SPY or XPH?
SPY yields 1.01% while XPH yields 0.51%, so SPY currently pays the higher dividend yield.
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