ETF Versus

SPSM vs XLU

State Street SPDR Portfolio S&P 600 Small Cap ETF vs State Street Utilities 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
XLU State Street

State Street Utilities Select Sector SPDR ETF (XLU) is an exchange-traded fund issued by State Street that provides exposure to us sector - utilities securities. It charges a low expense ratio of 0.09%. The fund offers an attractive dividend yield of 2.57%. Launched in 1998, the fund has a 28-year track record.

AUM: N/A ER: 0.09% Yield: 2.57% 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. Both funds have delivered similar 1-year returns (17.2% vs 16.7%), tracking closely. Income investors may prefer XLU for its higher yield (2.6% vs 1.6%).

Key Metrics

Metric SPSM XLU
Expense Ratio 0.03% 0.09%
Dividend Yield 1.6% 2.6%
Fund Family State Street State Street
Category US Small Cap US Sector - Utilities

Performance Chart

Indexed to 100 at start (5-year comparison)

80 94 108 122 136 150 2021-04 2022-06 2023-10 2024-12 2026-04
SPSM +12.9%
XLU +43.3%

Performance Comparison

Period SPSM XLU Difference
1 Month -3.44% -1.55% -1.89%
3 Months +2.81% +7.32% -4.51%
6 Months +4.13% +3.24% +0.89%
YTD +2.81% +7.32% -4.51%
1 Year +17.18% +16.70% +0.48%
3 Years +28.75% +37.86% -9.11%
5 Years +12.94% +43.29% -30.35%

Fee Impact Over Time

Estimated fee cost difference assuming 8% annual returns

Investment Period SPSM Fees XLU 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 XLU
Annualized Volatility 21.5% 17.1%
Max Drawdown -28.7% -28.1%
Sharpe Ratio 0.01 0.24

Dividend Comparison

Metric SPSM XLU
Annual Dividend (per share) $0.77 $1.19
Dividend Yield 1.58% 2.57%
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 XLU if...

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

Related Comparisons