SPY vs XSMO
State Street SPDR S&P 500 ETF Trust vs Invesco S&P SmallCap Momentum ETF
Quick Verdict
SPY has a lower expense ratio. XSMO delivered stronger 1-year returns. SPY offers more diversification with 505 holdings.
Side-by-Side Comparison
| Metric | SPY | XSMO | Winner |
|---|---|---|---|
| Expense Ratio | 0.09% | 0.36% | |
| AUM | $821.1B | $3.1B | |
| Dividend Yield | 1.01% | 0.55% | |
| Holdings | 505 | 113 | |
| YTD Return | +12.68% | +18.39% | |
| 1Y Return | +21.82% | +23.23% | |
| 3Y Return (annualized) | +21.98% | +21.37% | |
| 5Y Return (annualized) | +12.89% | +11.31% | |
| Volatility (annualized) | 15.3% | 275.0% | |
| Max Drawdown | -56.5% | -78.8% | |
| Fund Family | State Street Investment Management | Invesco (US) | |
| Category | Equity | Equity | |
| Inception | Jan 22, 1993 | Mar 3, 2005 |
SPY vs XSMO Performance
State Street SPDR S&P 500 ETF Trust (SPY) is a ETF from State Street Investment Management and Invesco S&P SmallCap Momentum ETF (XSMO) is a ETF from Invesco (US). Over the past year SPY returned +21.82% while XSMO returned +23.23%. Year to date, SPY is up 12.68% versus a gain of 18.39% for XSMO.
Over three years, SPY compounded at +21.98% per year against +21.37% for XSMO; over five years the annualized figures are +12.89% and +11.31% respectively. Across the full 28-year window we track, XSMO has the edge at +14.79% annualized vs +8.81%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
XSMO has been the more volatile fund, with annualized monthly volatility of 275.0% 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 -78.8% for XSMO. 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 0.14. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
SPY charges 0.09% per year while XSMO charges 0.36%. On a $10,000 position that is $9 vs $36 annually, a gap of $27 per year that compounds over a long holding period. On income, SPY currently yields 1.01% against 0.55% for XSMO.
Holdings Overlap
SPY and XSMO share 0 holdings out of 615 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 XSMO?
SPY has an expense ratio of 0.09% while XSMO charges 0.36%. SPY is the cheaper option. On a $10,000 investment, that is $27 per year of difference.
Which performed better, SPY or XSMO?
Over the past year SPY returned +21.82% vs +23.23% for XSMO, so XSMO leads on 1-year performance. Over the longest common window we track (28 years), SPY annualized +8.81% vs +14.79% for XSMO. Past performance does not guarantee future results.
Which is riskier, SPY or XSMO?
XSMO has been the more volatile fund at 275.0% annualized versus 15.3% for SPY. Worst drawdown: SPY -56.5% vs XSMO -78.8%.
Should I hold both SPY and XSMO?
SPY and XSMO have a monthly-return correlation of 0.14, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between SPY and XSMO?
SPY and XSMO share 0 common holdings with a 0.0% weight overlap. Combined, they hold 615 unique securities.
Which pays a higher dividend, SPY or XSMO?
SPY yields 1.01% while XSMO yields 0.55%, so SPY currently pays the higher dividend yield.
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