SPY vs XRT
State Street SPDR S&P 500 ETF Trust vs State Street SPDR S&P Retail 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 | XRT | Winner |
|---|---|---|---|
| Expense Ratio | 0.09% | 0.35% | |
| AUM | $814.4B | $365M | |
| Dividend Yield | 1.01% | 0.75% | |
| Holdings | 505 | 77 | |
| YTD Return | +12.87% | +0.72% | |
| 1Y Return | +21.13% | +2.91% | |
| 3Y Return (annualized) | +20.86% | +11.13% | |
| 5Y Return (annualized) | +12.69% | -0.75% | |
| Volatility (annualized) | 15.3% | 24.6% | |
| Max Drawdown | -56.5% | -66.2% | |
| Fund Family | State Street Investment Management | State Street Investment Management | |
| Category | Equity | Equity | |
| Inception | Jan 22, 1993 | Jun 19, 2006 |
SPY vs XRT Performance
State Street SPDR S&P 500 ETF Trust (SPY) is a ETF from State Street Investment Management and State Street SPDR S&P Retail ETF (XRT) is a ETF from State Street Investment Management. Over the past year SPY returned +21.13% while XRT returned +2.91%. Year to date, SPY is up 12.87% versus a gain of 0.72% for XRT.
Over three years, SPY compounded at +20.86% per year against +11.13% for XRT; over five years the annualized figures are +12.69% and -0.75% respectively. Across the full 20-year window we track, SPY has the edge at +8.80% annualized vs +8.29%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
XRT has been the more volatile fund, with annualized monthly volatility of 24.6% 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 -66.2% for XRT. 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 0.74. They usually move together, but the gap leaves some room for diversification.
Fees and Cost Over Time
SPY charges 0.09% per year while XRT 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 0.75% for XRT.
Holdings Overlap
SPY and XRT share 17 holdings out of 563 unique holdings combined, representing a 3.9% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Frequently Asked Questions
Which is cheaper, SPY or XRT?
SPY has an expense ratio of 0.09% while XRT 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 XRT?
Over the past year SPY returned +21.13% vs +2.91% for XRT, so SPY leads on 1-year performance. Over the longest common window we track (20 years), SPY annualized +8.80% vs +8.29% for XRT. Past performance does not guarantee future results.
Which is riskier, SPY or XRT?
XRT has been the more volatile fund at 24.6% annualized versus 15.3% for SPY. Worst drawdown: SPY -56.5% vs XRT -66.2%.
Should I hold both SPY and XRT?
SPY and XRT have a monthly-return correlation of 0.74, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between SPY and XRT?
SPY and XRT share 17 common holdings with a 3.9% weight overlap. Combined, they hold 563 unique securities.
Which pays a higher dividend, SPY or XRT?
SPY yields 1.01% while XRT yields 0.75%, so SPY currently pays the higher dividend yield.
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