SPEM vs. XLE

Last updated Jun 4, 2026

SPEM (SPDR Portfolio Emerging Markets ETF) and XLE (State Street Energy Select Sector SPDR ETF) are both exchange-traded funds - SPEM is a Emerging Markets Equities fund tracking the S&P Emerging Markets BMI, while XLE is a Energy Equities fund tracking the Energy Select Sector Index. Both are passively managed. Over the past 10 years, SPEM returned 9.45%/yr vs 10.22%/yr for XLE. A 0.56 correlation means they provide meaningful diversification when combined. SPEM charges 0.11%/yr vs 0.08%/yr for XLE.

Performance

SPEM vs. XLE - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in SPDR Portfolio Emerging Markets ETF (SPEM) and State Street Energy Select Sector SPDR ETF (XLE). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, SPEM achieves a 12.45% return, which is significantly lower than XLE's 32.17% return. Over the past 10 years, SPEM has underperformed XLE with an annualized return of 9.45%, while XLE has yielded a comparatively higher 10.22% annualized return.

SPEM

• 1D: -1.40%
• 1M: 3.20%
• YTD: 12.45%
• 6M: 14.11%
• 1Y: 31.35%
• 3Y*: 18.73%
• 5Y*: 5.70%
• 10Y*: 9.45%

XLE

• 1D: 1.29%
• 1M: -1.14%
• YTD: 32.17%
• 6M: 29.80%
• 1Y: 45.00%
• 3Y*: 17.46%
• 5Y*: 20.44%
• 10Y*: 10.22%

*Multi-year figures are annualized to reflect compound growth (CAGR)

SPEM vs. XLE - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
SPEM SPDR Portfolio Emerging Markets ETF	12.45%	25.63%	11.40%	10.51%	-17.90%	1.51%	14.55%	19.69%	-13.26%	34.82%
XLE State Street Energy Select Sector SPDR ETF	32.17%	7.88%	5.56%	-0.63%	64.32%	53.28%	-32.67%	11.74%	-18.22%	-0.89%

Correlation

The correlation between SPEM and XLE is -0.08, meaning there is essentially no relationship between their price movements. Each responds to its own set of market drivers, making them strong candidates for combining in a diversified portfolio.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	-0.08
Correlation (3Y) Calculated over the trailing 3-year period	0.17
Correlation (5Y) Calculated over the trailing 5-year period	0.27
Correlation (10Y) Calculated over the trailing 10-year period	0.40
Correlation (All Time) Calculated using the full available price history since Mar 26, 2007	0.56

The correlation between SPEM and XLE shifts across timeframes, from -0.08 (1 year) to 0.56 (all time), reflecting how their relationship changes across market environments.

SPEM vs. XLE - Sectors Allocation Comparison

Sectors	SPEM	XLE
Technology	28.2%	-
Financial Services	20.2%	-
Consumer Cyclical	10.4%	-
Industrials	8.5%	-
Basic Materials	8.2%	-
Communication Services	7.2%	-
Energy	4.7%	100.0%
Healthcare	4.0%	-
Consumer Defensive	3.9%	-
Utilities	2.8%	-
Real Estate	1.9%	-

Return for Risk

SPEM vs. XLE — Risk / Return Rank

Compare risk-adjusted metric ranks to identify better-performing investments over the past 12 months.

SPEM

SPEM Risk / Return Rank: 57
SPEM Sharpe Ratio Rank: 57
SPEM Sortino Ratio Rank: 56
SPEM Omega Ratio Rank: 58
SPEM Calmar Ratio Rank: 55
SPEM Martin Ratio Rank: 57

XLE

XLE Risk / Return Rank: 63
XLE Sharpe Ratio Rank: 65
XLE Sortino Ratio Rank: 59
XLE Omega Ratio Rank: 56
XLE Calmar Ratio Rank: 73
XLE Martin Ratio Rank: 60

The rank (0–100) shows how this investment's returns compare to the risk taken. Higher = better. Based on the past 12 months of data, combining Sharpe, Sortino, and other metrics used by quantitative funds and institutional investors.

SPEM vs. XLE - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for SPDR Portfolio Emerging Markets ETF (SPEM) and State Street Energy Select Sector SPDR ETF (XLE). Risk-adjusted metrics are performance indicators that assess an investment's returns in relation to its risk, enabling a more accurate comparison of different investment options.

	SPEM	XLE	Difference
Sharpe ratio: Return per unit of total volatility	1.98	2.21	-0.23
Sortino ratio: Return per unit of downside risk	2.73	2.84	-0.11
Omega ratio: Gain probability vs. loss probability	1.36	1.35	+0.01
Calmar ratio: Return relative to maximum drawdown	2.77	3.75	-0.98
Martin ratio: Return relative to average drawdown	10.14	10.92	-0.79
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month.

SPEM vs. XLE - Sharpe Ratio Comparison

The current SPEM Sharpe Ratio is 1.98, which is comparable to the XLE Sharpe Ratio of 2.21. The chart below compares the historical Sharpe Ratios of SPEM and XLE, calculated using daily returns over the previous 12 months. A higher Sharpe Ratio indicates better risk-adjusted performance relative to the risk-free rate.

Sharpe Ratios by Period

	SPEM	XLE	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	1.98	2.21	-0.23
Sharpe Ratio (5Y) Calculated over the trailing 5-year period	0.33	0.79	-0.46
Sharpe Ratio (10Y) Calculated over the trailing 10-year period	0.50	0.35	+0.16
Sharpe Ratio (All Time) Calculated using the full available price history	0.23	0.31	-0.08

Drawdowns

SPEM vs. XLE - Drawdown Comparison

The maximum SPEM drawdown since its inception was -64.41%, smaller than the maximum XLE drawdown of -71.26%. Use the drawdown chart below to compare losses from any high point for SPEM and XLE.

Drawdown Indicators

	SPEM	XLE	Difference
Max Drawdown Largest peak-to-trough decline	-64.41%	-71.26%	+6.85%
Max Drawdown (1Y) Largest decline over 1 year	-11.36%	-12.05%	+0.69%
Max Drawdown (3Y) Largest decline over 3 years	-17.62%	-20.14%	+2.52%
Max Drawdown (5Y) Largest decline over 5 years	-31.88%	-26.04%	-5.84%
Max Drawdown (10Y) Largest decline over 10 years	-36.06%	-66.81%	+30.75%
Current Drawdown Current decline from peak	-1.40%	-6.15%	+4.75%
Average Drawdown Average peak-to-trough decline	-14.75%	-17.98%	+3.23%
Ulcer Index Depth and duration of drawdowns from previous peaks	3.10%	4.14%	-1.04%

Volatility

SPEM vs. XLE - Volatility Comparison

The current volatility for SPDR Portfolio Emerging Markets ETF (SPEM) is 5.69%, while State Street Energy Select Sector SPDR ETF (XLE) has a volatility of 8.25%. This indicates that SPEM experiences smaller price fluctuations and is considered to be less risky than XLE based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	SPEM	XLE	Difference
Volatility (1M) Calculated over the trailing 1-month period	5.69%	8.25%	-2.56%
Volatility (6M) Calculated over the trailing 6-month period	13.29%	16.58%	-3.29%
Volatility (1Y) Calculated over the trailing 1-year period	15.92%	20.53%	-4.61%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	17.13%	26.02%	-8.89%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	18.80%	29.59%	-10.79%

SPEM vs. XLE - Expense Ratio Comparison

SPEM has a 0.11% expense ratio, which is higher than XLE's 0.08% expense ratio. However, both funds are considered low-cost compared to the broader market, where average expense ratios usually range from 0.3% to 0.9%.

Dividends

SPEM vs. XLE - Dividend Comparison

SPEM's dividend yield for the trailing twelve months is around 2.47%, less than XLE's 2.54% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
SPEM SPDR Portfolio Emerging Markets ETF	2.47%	2.77%	2.78%	2.80%	3.38%	3.14%	1.92%	2.94%	2.34%	1.12%	1.51%	2.40%
XLE State Street Energy Select Sector SPDR ETF	2.54%	3.28%	3.36%	3.55%	3.68%	4.21%	5.62%	6.72%	3.54%	3.03%	2.26%	3.39%

Frequently Asked Questions

Can I hold both SPEM and XLE in my portfolio?

SPEM and XLE have a correlation of -0.08, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, SPEM or XLE?

XLE has higher volatility (8.25%) compared to SPEM (5.69%). In terms of maximum drawdown, SPEM dropped -64.41% vs XLE's -71.26%.

Which ETF is better, SPEM or XLE?

On 10-year performance, XLE leads with 10.22% vs 9.45% for SPEM. On fees, XLE is cheaper at 0.08% per year. On volatility, SPEM has been the lower-risk option at 5.69%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, SPEM or XLE?

Over the 10-year period, XLE has performed better with a 10.22% return vs 9.45%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, SPEM or XLE?

XLE is cheaper with a 0.08% expense ratio, compared with 0.11% for SPEM.

Which ETF pays a higher dividend yield, SPEM or XLE?

XLE has the higher dividend yield at 2.54%, compared with 2.47% for SPEM.

What is the main difference between SPEM and XLE?

SPEM is categorized as Emerging Markets Equities, while XLE is Energy Equities. SPEM tracks S&P Emerging Markets BMI, while XLE tracks Energy Select Sector Index. Their fees differ too: 0.11% for SPEM and 0.08% for XLE.

Which has better risk-adjusted returns?

XLE currently has the higher Sharpe Ratio (2.21 vs 1.98), meaning it's delivered slightly more return per unit of risk over the trailing 12 months. However, this ranking shifts over time - use the Risk/Return Score above for a more comprehensive view that combines Sharpe, Sortino, and other measures used by quantitative funds.