ETF Versus

SPSM vs XLRE

State Street SPDR Portfolio S&P 600 Small Cap ETF vs State Street Real Estate 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
XLRE State Street

State Street Real Estate Select Sector SPDR ETF (XLRE) is an exchange-traded fund issued by State Street that provides exposure to us sector - real estate securities. It charges a low expense ratio of 0.09%. The fund offers an attractive dividend yield of 3.39%. Launched in 2015, the fund has a 11-year track record.

AUM: N/A ER: 0.09% Yield: 3.39% Since: 2015-10-08

Quick Verdict

SPSM has a slightly lower expense ratio (0.03% vs 0.09%), saving about $119 per $10,000 over 10 years. Over the past year, SPSM has significantly outperformed with a 17.2% return vs -1.8%. Income investors may prefer XLRE for its higher yield (3.4% vs 1.6%).

Key Metrics

Metric SPSM XLRE
Expense Ratio 0.03% 0.09%
Dividend Yield 1.6% 3.4%
Fund Family State Street State Street
Category US Small Cap US Sector - Real Estate

Performance Chart

Indexed to 100 at start (5-year comparison)

80 90 100 110 120 130 2021-04 2022-06 2023-10 2024-12 2026-04
SPSM +12.9%
XLRE +2.4%

Performance Comparison

Period SPSM XLRE Difference
1 Month -3.44% -5.47% +2.03%
3 Months +2.81% +2.30% +0.51%
6 Months +4.13% -0.84% +4.97%
YTD +2.81% +2.30% +0.51%
1 Year +17.18% -1.83% +19.01%
3 Years +28.75% +11.56% +17.19%
5 Years +12.94% +2.43% +10.51%

Fee Impact Over Time

Estimated fee cost difference assuming 8% annual returns

Investment Period SPSM Fees XLRE 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 XLRE
Annualized Volatility 21.5% 19.1%
Max Drawdown -28.7% -37.9%
Sharpe Ratio 0.01 -0.12

Dividend Comparison

Metric SPSM XLRE
Annual Dividend (per share) $0.77 $1.40
Dividend Yield 1.58% 3.39%
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 XLRE if...

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

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