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SPSM vs XLC

State Street SPDR Portfolio S&P 600 Small Cap ETF vs State Street Communication Services 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
XLC State Street

State Street Communication Services Select Sector SPDR ETF (XLC) is an exchange-traded fund issued by State Street that provides exposure to us sector - communication securities. It charges a low expense ratio of 0.09%. The fund offers a moderate dividend yield of 1.25%. Launched in 2018, the fund has a 8-year track record.

AUM: N/A ER: 0.09% Yield: 1.25% Since: 2018-06-19

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 15.0%).

Key Metrics

Metric SPSM XLC
Expense Ratio 0.03% 0.09%
Dividend Yield 1.6% 1.3%
Fund Family State Street State Street
Category US Small Cap US Sector - Communication

Performance Chart

Indexed to 100 at start (5-year comparison)

60 80 100 120 140 160 2021-04 2022-06 2023-10 2024-12 2026-04
SPSM +12.9%
XLC +46.3%

Performance Comparison

Period SPSM XLC Difference
1 Month -3.44% -5.56% +2.12%
3 Months +2.81% -4.70% +7.51%
6 Months +4.13% -4.39% +8.52%
YTD +2.81% -4.70% +7.51%
1 Year +17.18% +15.02% +2.16%
3 Years +28.75% +91.38% -62.63%
5 Years +12.94% +46.29% -33.35%

Fee Impact Over Time

Estimated fee cost difference assuming 8% annual returns

Investment Period SPSM Fees XLC 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 XLC
Annualized Volatility 21.5% 20.7%
Max Drawdown -28.7% -47.2%
Sharpe Ratio 0.01 0.26

Dividend Comparison

Metric SPSM XLC
Annual Dividend (per share) $0.77 $1.40
Dividend Yield 1.58% 1.25%
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.

Choose SPSM if...

recent performance momentum matters to your strategy. Note that past performance doesn't guarantee future results.

Choose SPSM if...

you prioritize dividend income and want higher regular distributions from your portfolio.

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