ETF Versus

SPY vs XLB

State Street SPDR S&P 500 ETF Trust vs State Street Materials Select Sector SPDR ETF

Last updated: 2026-04-02

SPY State Street

State Street SPDR S&P 500 ETF Trust (SPY) is an exchange-traded fund issued by State Street that provides exposure to large-cap U.S. equities across growth and value styles. It charges a low expense ratio of 0.09%. The fund offers a moderate dividend yield of 1.13%. Launched in 1993, the fund has a 33-year track record.

AUM: $712.1B ER: 0.09% Yield: 1.13% Since: 1993-01-29
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

Both funds have delivered similar 1-year returns (16.0% vs 15.8%), tracking closely. Income investors may prefer XLB for its higher yield (1.7% vs 1.1%).

Key Metrics

Metric SPY XLB
Expense Ratio 0.09% 0.09%
Dividend Yield 1.1% 1.7%
Fund Family State Street State Street
Category US Large Cap Blend US Sector - Materials

Performance Chart

Indexed to 100 at start (5-year comparison)

85 103 121 139 157 175 2021-04 2022-06 2023-10 2024-12 2026-04
SPY +61.1%
XLB +25.2%

Performance Comparison

Period SPY XLB Difference
1 Month -3.75% -3.00% -0.75%
3 Months -4.15% +9.24% -13.39%
6 Months -2.50% +12.23% -14.73%
YTD -4.15% +9.24% -13.39%
1 Year +16.00% +15.80% +0.20%
3 Years +59.35% +24.13% +35.22%
5 Years +61.15% +25.21% +35.94%

Fee Impact Over Time

Estimated fee cost difference assuming 8% annual returns

Investment Period SPY Fees XLB Fees You Save
$10,000 10 years $179 $179 $0
$10,000 20 years $771 $771 $0
$10,000 30 years $2,486 $2,486 $0
$50,000 10 years $896 $896 $0
$50,000 30 years $12,428 $12,428 $0
$100,000 30 years $24,855 $24,855 $0

Risk Metrics

Based on 5 years of daily returns

Metric SPY XLB
Annualized Volatility 17.1% 18.9%
Max Drawdown -25.4% -25.7%
Sharpe Ratio 0.38 0.10

Dividend Comparison

Metric SPY XLB
Annual Dividend (per share) $7.38 $0.87
Dividend Yield 1.13% 1.74%
Distribution Frequency Quarterly Quarterly

Top Holdings

SPY Top Holdings

NameWeight
NVIDIA Corp775.46%
Apple Inc687.37%
Microsoft Corp615.05%
Amazon.com Inc384.22%
Broadcom Inc279.66%
Alphabet Inc249.68%
Meta Platforms Inc245.99%
Tesla Inc216.23%
Berkshire Hathaway Inc157.72%

Which One Should You Choose?

Choose XLB if...

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

Related Comparisons