SPYM vs. XLC

Last updated Jun 14, 2026

SPYM (State Street SPDR Portfolio S&P 500 ETF) and XLC (Communication Services Select Sector SPDR Fund) are both exchange-traded funds - SPYM is a S&P 500 fund tracking the S&P 500 Index, while XLC is a Communications Equities fund tracking the S&P Communication Services Select Sector Index. Both are passively managed. Over the past 5 years, SPYM returned 13.43%/yr vs 8.03%/yr for XLC. Their correlation of 0.81 suggests significant overlap in exposure. SPYM charges 0.02%/yr vs 0.13%/yr for XLC.

Performance

SPYM vs. XLC - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in State Street SPDR Portfolio S&P 500 ETF (SPYM) and Communication Services Select Sector SPDR Fund (XLC). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, SPYM achieves a 9.10% return, which is significantly higher than XLC's -4.85% return.

SPYM

• 1D: 0.53%
• 1M: 0.36%
• YTD: 9.10%
• 6M: 9.42%
• 1Y: 25.76%
• 3Y*: 20.95%
• 5Y*: 13.43%
• 10Y*: 15.52%

XLC

• 1D: -0.42%
• 1M: -3.82%
• YTD: -4.85%
• 6M: -3.59%
• 1Y: 10.19%
• 3Y*: 21.60%
• 5Y*: 8.03%
• 10Y*: —

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

SPYM vs. XLC - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018
SPYM State Street SPDR Portfolio S&P 500 ETF	9.10%	17.79%	25.00%	26.24%	-18.09%	28.78%	18.49%	31.99%	-9.20%
XLC Communication Services Select Sector SPDR Fund	-4.85%	23.08%	34.71%	52.82%	-37.63%	15.96%	26.90%	31.05%	-16.45%

Correlation

The correlation between SPYM and XLC is 0.63, which is moderate. They share some common price drivers but move independently often enough to provide real diversification benefit when combined.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	0.63
Correlation (3Y) Calculated over the trailing 3-year period	0.74
Correlation (5Y) Calculated over the trailing 5-year period	0.81
Correlation (All Time) Calculated using the full available price history since Jun 19, 2018	0.81

The correlation between SPYM and XLC shifts across timeframes, from 0.63 (1 year) to 0.81 (all time), reflecting how their relationship changes across market environments.

SPYM vs. XLC - Sectors Allocation Comparison

Sectors	SPYM	XLC
Technology	39.0%	4.7%
Financial Services	11.1%	-
Communication Services	10.6%	95.1%
Consumer Cyclical	9.9%	-
Healthcare	8.3%	-
Industrials	7.8%	-
Consumer Defensive	4.5%	-
Energy	3.1%	-
Utilities	2.1%	-
Real Estate	1.8%	-
Basic Materials	1.7%	-

Return for Risk

SPYM vs. XLC — Risk / Return Rank

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

SPYM

SPYM Risk / Return Rank: 70
SPYM Sharpe Ratio Rank: 72
SPYM Sortino Ratio Rank: 69
SPYM Omega Ratio Rank: 72
SPYM Calmar Ratio Rank: 63
SPYM Martin Ratio Rank: 76

XLC

XLC Risk / Return Rank: 22
XLC Sharpe Ratio Rank: 22
XLC Sortino Ratio Rank: 22
XLC Omega Ratio Rank: 20
XLC Calmar Ratio Rank: 22
XLC Martin Ratio Rank: 24

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.

SPYM vs. XLC - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for State Street SPDR Portfolio S&P 500 ETF (SPYM) and Communication Services Select Sector SPDR Fund (XLC). 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.

Values are calculated on a 1-year rolling basis and updated daily. Risk-adjusted metrics are more stable over longer periods — use the period switch above to explore them.

	SPYM	XLC	Difference
Sharpe ratio: Return per unit of total volatility	2.00	0.69	+1.31
Sortino ratio: Return per unit of downside risk	2.70	1.08	+1.62
Omega ratio: Gain probability vs. loss probability	1.36	1.12	+0.24
Calmar ratio: Return relative to maximum drawdown	2.75	0.86	+1.89
Martin ratio: Return relative to average drawdown	12.42	2.73	+9.69

SPYM vs. XLC - Sharpe Ratio Comparison

The current SPYM Sharpe Ratio is 2.00, which is higher than the XLC Sharpe Ratio of 0.69. The chart below compares the historical Sharpe Ratios of SPYM and XLC, calculated using daily returns over the previous 12 months. A higher Sharpe Ratio indicates better risk-adjusted performance relative to the risk-free rate.

Drawdowns

SPYM vs. XLC - Drawdown Comparison

The maximum SPYM drawdown since its inception was -54.46%, which is greater than XLC's maximum drawdown of -46.65%. Use the drawdown chart below to compare losses from any high point for SPYM and XLC.

Drawdown Indicators

	SPYM	XLC	Difference
Max Drawdown Largest peak-to-trough decline	-54.46%	-46.65%	-7.81%
Max Drawdown (1Y) Largest decline over 1 year	-8.90%	-10.57%	+1.67%
Max Drawdown (3Y) Largest decline over 3 years	-18.72%	-17.97%	-0.75%
Max Drawdown (5Y) Largest decline over 5 years	-24.48%	-46.65%	+22.17%
Max Drawdown (10Y) Largest decline over 10 years	-33.87%	—	—
Current Drawdown Current decline from peak	-2.35%	-6.72%	+4.37%
Average Drawdown Average peak-to-trough decline	-7.15%	-10.58%	+3.43%
Ulcer Index Depth and duration of drawdowns from previous peaks	1.97%	3.33%	-1.36%

Volatility

SPYM vs. XLC - Volatility Comparison

State Street SPDR Portfolio S&P 500 ETF (SPYM) has a higher volatility of 4.33% compared to Communication Services Select Sector SPDR Fund (XLC) at 3.57%. This indicates that SPYM's price experiences larger fluctuations and is considered to be riskier than XLC based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	SPYM	XLC	Difference
Volatility (1M) Calculated over the trailing 1-month period	4.33%	3.57%	+0.76%
Volatility (6M) Calculated over the trailing 6-month period	9.58%	9.65%	-0.07%
Volatility (1Y) Calculated over the trailing 1-year period	12.26%	13.28%	-1.02%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	16.87%	20.68%	-3.81%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	18.03%	22.17%	-4.14%

SPYM vs. XLC - Expense Ratio Comparison

SPYM has a 0.02% expense ratio, which is lower than XLC's 0.13% expense ratio. Despite the difference, both funds are considered low-cost compared to the broader market, where average expense ratios usually range from 0.3% to 0.9%.

Dividends

SPYM vs. XLC - Dividend Comparison

SPYM's dividend yield for the trailing twelve months is around 1.29%, more than XLC's 1.25% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
SPYM State Street SPDR Portfolio S&P 500 ETF	1.29%	1.13%	1.28%	1.44%	1.69%	1.25%	1.54%	1.79%	2.23%	1.75%	1.97%	1.98%
XLC Communication Services Select Sector SPDR Fund	1.25%	1.13%	0.99%	0.82%	1.10%	0.74%	0.68%	0.82%	0.64%	0.00%	0.00%	0.00%

Frequently Asked Questions

Can I hold both SPYM and XLC in my portfolio?

SPYM and XLC have a correlation of 0.63, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, SPYM or XLC?

SPYM has higher volatility (4.33%) compared to XLC (3.57%). In terms of maximum drawdown, SPYM dropped -54.46% vs XLC's -46.65%.

Which ETF is better, SPYM or XLC?

On 5-year performance, SPYM leads with 13.43% vs 8.03% for XLC. On fees, SPYM is cheaper at 0.02% per year. On volatility, XLC has been the lower-risk option at 3.57%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, SPYM or XLC?

Over the 5-year period, SPYM has performed better with a 13.43% return vs 8.03%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, SPYM or XLC?

SPYM is cheaper with a 0.02% expense ratio, compared with 0.13% for XLC.

Which ETF pays a higher dividend yield, SPYM or XLC?

SPYM has the higher dividend yield at 1.29%, compared with 1.25% for XLC.

What is the main difference between SPYM and XLC?

SPYM is categorized as S&P 500, while XLC is Communications Equities. SPYM tracks S&P 500 Index, while XLC tracks S&P Communication Services Select Sector Index. Their fees differ too: 0.02% for SPYM and 0.13% for XLC.

Which has better risk-adjusted returns?

SPYM currently has the higher Sharpe Ratio (2.00 vs 0.69), 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.