SPY vs XSD
State Street SPDR S&P 500 ETF Trust vs State Street SPDR S&P Semiconductor ETF
Quick Verdict
SPY has a lower expense ratio. XSD delivered stronger 1-year returns. SPY offers more diversification with 505 holdings.
Side-by-Side Comparison
| Metric | SPY | XSD | Winner |
|---|---|---|---|
| Expense Ratio | 0.09% | 0.35% | |
| AUM | $821.1B | $2.9B | |
| Dividend Yield | 1.01% | 0.16% | |
| Holdings | 505 | 49 | |
| YTD Return | +13.17% | +50.22% | |
| 1Y Return | +21.53% | +82.99% | |
| 3Y Return (annualized) | +22.06% | +35.25% | |
| 5Y Return (annualized) | +13.35% | +22.01% | |
| Volatility (annualized) | 15.3% | 29.8% | |
| Max Drawdown | -56.5% | -64.9% | |
| Fund Family | State Street Investment Management | State Street Investment Management | |
| Category | Equity | Equity | |
| Inception | Jan 22, 1993 | Jan 31, 2006 |
SPY vs XSD Performance
State Street SPDR S&P 500 ETF Trust (SPY) is a ETF from State Street Investment Management and State Street SPDR S&P Semiconductor ETF (XSD) is a ETF from State Street Investment Management. Over the past year SPY returned +21.53% while XSD returned +82.99%. Year to date, SPY is up 13.17% versus a gain of 50.22% for XSD.
Over three years, SPY compounded at +22.06% per year against +35.25% for XSD; over five years the annualized figures are +13.35% and +22.01% respectively. Across the full 21-year window we track, XSD has the edge at +15.46% annualized vs +8.82%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
XSD has been the more volatile fund, with annualized monthly volatility of 29.8% 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 -64.9% for XSD. 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 0.76. They usually move together, but the gap leaves some room for diversification.
Fees and Cost Over Time
SPY charges 0.09% per year while XSD 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 0.16% for XSD.
Holdings Overlap
SPY and XSD share 15 holdings out of 536 unique holdings combined, representing a 10.6% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Frequently Asked Questions
Which is cheaper, SPY or XSD?
SPY has an expense ratio of 0.09% while XSD 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 XSD?
Over the past year SPY returned +21.53% vs +82.99% for XSD, so XSD leads on 1-year performance. Over the longest common window we track (21 years), SPY annualized +8.82% vs +15.46% for XSD. Past performance does not guarantee future results.
Which is riskier, SPY or XSD?
XSD has been the more volatile fund at 29.8% annualized versus 15.3% for SPY. Worst drawdown: SPY -56.5% vs XSD -64.9%.
Should I hold both SPY and XSD?
SPY and XSD have a monthly-return correlation of 0.76, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between SPY and XSD?
SPY and XSD share 15 common holdings with a 10.6% weight overlap. Combined, they hold 536 unique securities.
Which pays a higher dividend, SPY or XSD?
SPY yields 1.01% while XSD yields 0.16%, so SPY currently pays the higher dividend yield.
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