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SPSM vs XLB

State Street SPDR Portfolio S&P 600 Small Cap ETF vs State Street Materials Select Sector SPDR ETF

Last updated: 2026-04-02

SPSM State Street

State Street SPDR Portfolio S&P 600 Small Cap ETF (SPSM) is an exchange-traded fund issued by State Street that provides exposure to small-cap U.S. equities with higher growth potential and volatility. It charges a very low expense ratio of 0.03%. The fund offers a moderate dividend yield of 1.58%. Launched in 2013, the fund has a 13-year track record.

AUM: N/A ER: 0.03% Yield: 1.58% Since: 2013-07-09
XLB State Street

State Street Materials Select Sector SPDR ETF (XLB) is an exchange-traded fund issued by State Street that provides exposure to us sector - materials securities. It charges a low expense ratio of 0.09%. The fund offers a moderate dividend yield of 1.74%. Launched in 1998, the fund has a 28-year track record.

AUM: N/A ER: 0.09% Yield: 1.74% Since: 1998-12-22

Quick Verdict

SPSM has a slightly lower expense ratio (0.03% vs 0.09%), saving about $119 per $10,000 over 10 years. SPSM has edged ahead over the past year (17.2% vs 15.8%).

Key Metrics

Metric SPSM XLB
Expense Ratio 0.03% 0.09%
Dividend Yield 1.6% 1.7%
Fund Family State Street State Street
Category US Small Cap US Sector - Materials

Performance Chart

Indexed to 100 at start (5-year comparison)

80 91 102 113 124 135 2021-04 2022-06 2023-10 2024-12 2026-04
SPSM +12.9%
XLB +25.2%

Performance Comparison

Period SPSM XLB Difference
1 Month -3.44% -3.00% -0.44%
3 Months +2.81% +9.24% -6.43%
6 Months +4.13% +12.23% -8.10%
YTD +2.81% +9.24% -6.43%
1 Year +17.18% +15.80% +1.38%
3 Years +28.75% +24.13% +4.62%
5 Years +12.94% +25.21% -12.27%

Fee Impact Over Time

Estimated fee cost difference assuming 8% annual returns

Investment Period SPSM Fees XLB Fees You Save
$10,000 10 years $60 $179 $119
$10,000 20 years $258 $771 $512
$10,000 30 years $835 $2,486 $1,650
$50,000 10 years $299 $896 $597
$50,000 30 years $4,176 $12,428 $8,252
$100,000 30 years $8,352 $24,855 $16,503

Risk Metrics

Based on 5 years of daily returns

Metric SPSM XLB
Annualized Volatility 21.5% 18.9%
Max Drawdown -28.7% -25.7%
Sharpe Ratio 0.01 0.10

Dividend Comparison

Metric SPSM XLB
Annual Dividend (per share) $0.77 $0.87
Dividend Yield 1.58% 1.74%
Distribution Frequency Quarterly Quarterly

Which One Should You Choose?

Choose SPSM if...

you want the lowest fees and plan to buy and hold long-term. Over decades, the expense ratio difference compounds significantly.

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