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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: 2026-04-10

SPSM SPDR

State Street SPDR Portfolio S&P 600 Small Cap ETF (SPSM) is an exchange-traded fund issued by SPDR 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 1.52%. Launched in 2013, the fund has a 13-year track record.

AUM: $14.6B ER: 0.03% Yield: 1.52% Since: Jul 8, 2013
XLB SPDR

State Street Materials Select Sector SPDR ETF (XLB) is an exchange-traded fund issued by SPDR that provides exposure to us sector - materials securities. It charges a low expense ratio of 0.08%. The fund offers a moderate dividend yield of 1.68%. Launched in 1998, the fund has a 28-year track record.

AUM: $7.0B ER: 0.08% Yield: 1.68% Since: Dec 16, 1998

Quick Verdict

SPSM has a slightly lower expense ratio (0.03% vs 0.08%), saving about $99 per $10,000 over 10 years. SPSM has edged ahead over the past year (37.6% vs 32.9%).

Key Metrics

Metric SPSM XLB
Expense Ratio 0.03% 0.08%
Dividend Yield 1.5% 1.7%
Fund Family SPDR SPDR
Category US Small Cap US Sector - Materials

Performance Chart

Indexed to 100 at start (5-year comparison)

75 87 99 111 123 135 2021-04 2022-07 2023-10 2025-01 2026-04
SPSM +18.5%
XLB +29.3%

Performance Comparison

Period SPSM XLB Difference
1 Month +4.27% +4.22% +0.05%
3 Months +2.71% +7.06% -4.35%
6 Months +11.44% +17.75% -6.31%
YTD +7.01% +12.63% -5.62%
1 Year +37.58% +32.89% +4.69%
3 Years +34.97% +28.85% +6.12%
5 Years +18.48% +29.33% -10.85%

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 $159 $99
$10,000 20 years $258 $686 $427
$10,000 30 years $835 $2,212 $1,377
$50,000 10 years $299 $797 $497
$50,000 30 years $4,176 $11,061 $6,886
$100,000 30 years $8,352 $22,123 $13,771

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 0.06 0.13

Dividend Comparison

Metric SPSM XLB
Annual Dividend (per share) $0.77 $0.87
Dividend Yield 1.52% 1.68%
Distribution Frequency Quarterly Quarterly

Top Holdings

0 of top 10 holdings overlap (0% overlap in top holdings)

SPSM Top Holdings

NameWeight
Viavi Solutions Inc.VIAV0.60%
FormFactor, Inc.FORM0.57%
Eastman Chemical CompanyEMN0.53%
Primoris Services CorporationPRIM0.53%
Element Solutions IncESI0.53%
Argan, Inc.AGX0.51%
Semtech CorporationSMTC0.51%
ESCO Technologies Inc.ESE0.50%
Match Group, Inc.MTCH0.49%
Viasat, Inc.VSAT0.48%

XLB Top Holdings

NameWeight
Linde plcLIN14.06%
Newmont CorporationNEM7.76%
Freeport-McMoRan Inc.FCX5.63%
CRH plcCRH4.72%
Vulcan Materials CompanyVMC4.68%
The Sherwin-Williams CompanySHW4.66%
Air Products and Chemicals, Inc.APD4.60%
Corteva, Inc.CTVA4.60%
Nucor CorporationNUE4.57%
Martin Marietta Materials, Inc.MLM4.50%

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.

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