SPY vs XSW
State Street SPDR S&P 500 ETF Trust vs State Street SPDR S&P Software & Services ETF
Which is better, SPY or XSW?
Large Cap Blend against Mid Cap Growth.
SPY has a lower expense ratio. SPY led over 1Y, 3Y and 5Y, XSW over the full window. XSW is less concentrated, with 11.2% of the fund in its ten largest positions against 38.2%.
MarketXLS is not an investment adviser. This comparison is generated automatically from market data and is for information only. A Best mark means the better reading on that one measure, not a recommendation to buy.
Side-by-Side Comparison
| Metric | SPY | XSW |
|---|---|---|
| Expense Ratio | 0.09%Best | 0.35% |
| AUM | $811.2B | $473M |
| Dividend Yield | 0.98% | 0.00% |
| Holdings | 1,515 | 133 |
| YTD Return | +13.54%Best | +7.71% |
| 1Y Return | +16.25%Best | -0.66% |
| 3Y Return (annualized) | +23.72%Best | +17.25% |
| 5Y Return (annualized) | +13.95%Best | +3.28% |
| Volatility (annualized) | 14.1%Best | 20.9% |
| Max Drawdown | -34.1%Best | -45.4% |
| $10,000 over 5 years | $19,212Best | $11,751 |
| Top 10 Weight | 38.2% | 11.2%Best |
| Fund Family | State Street Investment Management | State Street Investment Management |
| Category | Equity | Equity |
| Style | Large Cap Blend | Mid Cap Growth |
| Inception | Jan 22, 1993 | Sep 28, 2011 |
Volatility and max drawdown are measured over the window both funds cover: Sep 29, 2011 to Oct 2, 2026 (15 years).
SPY vs XSW growth
Month-end closes. Both lines start at 0% in the first month shown, so the gap between them is the difference in growth across that window. The full view covers the 15 years both funds cover.
SPY vs XSW Performance
State Street SPDR S&P 500 ETF Trust (SPY) is an ETF from State Street Investment Management and State Street SPDR S&P Software & Services ETF (XSW) is an ETF from State Street Investment Management. Over the past year SPY returned +16.25% while XSW returned -0.66%. Year to date, SPY is up 13.54% versus a gain of 7.71% for XSW.
Over three years, SPY compounded at +23.72% per year against +17.25% for XSW; over five years the annualized figures are +13.95% and +3.28% respectively. Across the full 15-year window we track, XSW has the edge at +15.57% annualized vs +14.01%.
Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
XSW has been the more volatile fund, with annualized monthly volatility of 20.9% compared with 14.1% 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 -34.1% for SPY and -45.4% for XSW. Drawdown depth is what each fund did in the worst stretch of the window measured above.
The two funds' monthly returns correlate at 0.80. They usually move together, but the gap leaves some room for diversification.
Fees and Cost Over Time
SPY charges 0.09% per year while XSW 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 0.98% against 0.00% for XSW.
Holdings Overlap
10.0% of SPY's money is in holdings XSW also owns. 18.9% of XSW's money is in holdings SPY also owns.
XSW and SPY share little of their money.
27 positions in common, counted across the 504 positions we hold weights for in SPY and 132 in XSW, against full books of 1,515 and 133.
What only one of them owns
Our book lists 105 positions for XSW that do not appear in our book for SPY (81.2% of the fund), and 471 for SPY that do not appear in XSW (89.4%).
Some of those will be the same company recorded under a different code in one of the two books, so the real difference in what you would own is no larger than this and may be smaller. We do not name the individual positions here for that reason.
Top Shared Holdings
| Stock | Weight in SPY | Weight in XSW | Difference |
|---|---|---|---|
| MSFTMicrosoft Corp | 5.71% | 0.81% | 4.90% |
| PLTRPalantir Technologies Inc | 0.61% | 0.83% | 0.22% |
| PANWPalo Alto Networks, Inc | 0.46% | 0.81% | 0.35% |
| CRMSalesforce Inc Crm Us Equity | 0.32% | 0.94% | 0.62% |
| CRWDCrowdstrike Holdings Inc | 0.36% | 0.83% | 0.47% |
| NOWServicenow, Inc | 0.22% | 0.81% | 0.59% |
| IBMInternational Business Machines Corp. | 0.36% | 0.58% | 0.22% |
| WDAYWorkday, Inc., Class A | 0.06% | 0.87% | 0.81% |
| FTNTFortinet Inc | 0.16% | 0.73% | 0.57% |
| ACN:IEAccenture PLC Cl A | 0.18% | 0.70% | 0.52% |
You are not choosing between two funds in isolation.
Whichever of SPY and XSW you pick has to sit alongside everything else you own. Add the rest and see what the combination actually holds.
Free for up to 10 holdings. No account needed.
Frequently Asked Questions
Which is cheaper, SPY or XSW?
SPY has an expense ratio of 0.09% while XSW charges 0.35%. SPY is the cheaper option, by $26 a year on a $10,000 investment.
Which performed better, SPY or XSW?
Over the past year SPY returned +16.25% vs -0.66% for XSW, so SPY leads on 1-year performance. Over the longest common window we track (15 years), SPY annualized +14.01% vs +15.57% for XSW. Past performance does not guarantee future results. This is information, not a recommendation.
Which is riskier, SPY or XSW?
XSW has been the more volatile fund at 20.9% annualized versus 14.1% for SPY. Worst drawdown: SPY -34.1% vs XSW -45.4%.
Should I hold both SPY and XSW?
SPY and XSW have a monthly-return correlation of 0.80, so their returns are far enough apart for the mix to behave differently from either one alone. This is information, not a recommendation.
What is the holdings overlap between SPY and XSW?
18.9% of XSW's money is in holdings SPY also owns. 18.9% of XSW's is in holdings SPY also owns. They hold 27 positions in common, counted across the 504 positions we hold weights for in SPY and 132 in XSW.
Which pays a higher dividend, SPY or XSW?
SPY yields 0.98% while XSW yields 0.00%, so SPY currently pays the higher dividend yield.
Is XSW better than SPY?
SPY has a lower expense ratio. SPY led over 1Y, 3Y and 5Y, XSW over the full window. XSW is less concentrated, with 11.2% of the fund in its ten largest positions against 38.2%. Which one suits a particular account depends on what it is for. This is information, not a recommendation.