ETF Versus

SPY vs XLB

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

Last updated: 2026-04-10

SPY SPDR

State Street SPDR S&P 500 ETF Trust (SPY) is an exchange-traded fund issued by SPDR 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 1.09%. Launched in 1993, the fund has a 33-year track record.

AUM: $678.3B ER: 0.09% Yield: 1.09% Since: Jan 22, 1993
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

Both funds have nearly identical expense ratios (0.08% vs 0.09%), so fees are not a differentiator here. XLB has edged ahead over the past year (32.9% vs 29.6%). Income investors may prefer XLB for its higher yield (1.7% vs 1.1%).

Key Metrics

Metric SPY XLB
Expense Ratio 0.09% 0.08%
Dividend Yield 1.1% 1.7%
Fund Family SPDR SPDR
Category US Large Cap Blend US Sector - Materials

Performance Chart

Indexed to 100 at start (5-year comparison)

80 98 116 134 152 170 2021-04 2022-07 2023-10 2025-01 2026-04
SPY +65.2%
XLB +29.3%

Performance Comparison

Period SPY XLB Difference
1 Month +0.54% +4.22% -3.68%
3 Months -2.19% +7.06% -9.25%
6 Months +2.55% +17.75% -15.20%
YTD -0.47% +12.63% -13.10%
1 Year +29.62% +32.89% -3.27%
3 Years +65.95% +28.85% +37.10%
5 Years +65.18% +29.33% +35.85%

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 $159 $20
$10,000 20 years $771 $686 $85
$10,000 30 years $2,486 $2,212 $273
$50,000 10 years $896 $797 $99
$50,000 30 years $12,428 $11,061 $1,366
$100,000 30 years $24,855 $22,123 $2,732

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 0.41 0.13

Dividend Comparison

Metric SPY XLB
Annual Dividend (per share) $7.38 $0.87
Dividend Yield 1.09% 1.68%
Distribution Frequency Quarterly Quarterly

Top Holdings

0 of top 9 holdings overlap (0% overlap in top holdings)

SPY Top Holdings

NameWeight
NVIDIA CorporationNVDA7.61%
Apple Inc.AAPL6.54%
Microsoft CorporationMSFT4.78%
Amazon.com, Inc.AMZN3.72%
Broadcom Inc.AVGO2.86%
Alphabet Inc.GOOG2.53%
Meta Platforms, Inc.META2.31%
Tesla, Inc.TSLA1.66%
Berkshire Hathaway Inc.BRK.B1.51%

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 XLB if...

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

Choose XLB if...

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

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