TEXN vs. SPY

Last updated Jun 25, 2026

TEXN (iShares Texas Equity ETF) and SPY (State Street SPDR S&P 500 ETF) are both exchange-traded funds - TEXN is a Large Cap Blend Equities fund tracking the Russell Texas Equity Index, while SPY is a S&P 500 fund tracking the S&P 500 Index. Both are passively managed. Over the past year, TEXN returned 28.67% vs 22.18% for SPY. A 0.58 correlation means they provide meaningful diversification when combined. TEXN charges 0.20%/yr vs 0.09%/yr for SPY.

Performance

TEXN vs. SPY - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in iShares Texas Equity ETF (TEXN) and State Street SPDR S&P 500 ETF (SPY). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, TEXN achieves a 18.96% return, which is significantly higher than SPY's 8.10% return.

TEXN

• 1D: -0.90%
• 1M: -3.17%
• YTD: 18.96%
• 6M: 17.41%
• 1Y: 28.67%
• 3Y*: —
• 5Y*: —
• 10Y*: —

SPY

• 1D: -0.05%
• 1M: -1.41%
• YTD: 8.10%
• 6M: 6.77%
• 1Y: 22.18%
• 3Y*: 20.66%
• 5Y*: 12.96%
• 10Y*: 15.53%

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

TEXN vs. SPY - Yearly Performance Comparison

	2026 (YTD)	2025
TEXN iShares Texas Equity ETF	18.96%	8.33%
SPY State Street SPDR S&P 500 ETF	8.10%	14.28%

Correlation

The correlation between TEXN and SPY is 0.58, 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	0.58
Correlation (All Time) Calculated using the full available price history since Jun 24, 2025	0.58

The correlation between TEXN and SPY has been stable across timeframes, ranging from 0.58 to 0.58 - a consistent structural relationship.

TEXN vs. SPY - Sectors Allocation Comparison

Sectors	TEXN	SPY
Energy	32.3%	3.1%
Technology	20.6%	39.0%
Industrials	16.3%	7.8%
Consumer Cyclical	11.6%	9.9%
Real Estate	3.9%	1.8%
Financial Services	3.9%	11.1%
Communication Services	3.3%	10.6%
Utilities	2.7%	2.1%
Healthcare	2.7%	8.3%
Consumer Defensive	2.1%	4.5%
Basic Materials	0.7%	1.7%

Return for Risk

TEXN vs. SPY — Risk / Return Rank

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

TEXN

TEXN Risk / Return Rank: 77
TEXN Sharpe Ratio Rank: 70
TEXN Sortino Ratio Rank: 71
TEXN Omega Ratio Rank: 67
TEXN Calmar Ratio Rank: 88
TEXN Martin Ratio Rank: 86

SPY

SPY Risk / Return Rank: 60
SPY Sharpe Ratio Rank: 59
SPY Sortino Ratio Rank: 57
SPY Omega Ratio Rank: 59
SPY Calmar Ratio Rank: 57
SPY Martin Ratio Rank: 67

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.

TEXN vs. SPY - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for iShares Texas Equity ETF (TEXN) and State Street SPDR S&P 500 ETF (SPY). 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.

	TEXN	SPY	Difference
Sharpe ratio: Return per unit of total volatility	1.98	1.79	+0.19
Sortino ratio: Return per unit of downside risk	2.79	2.45	+0.35
Omega ratio: Gain probability vs. loss probability	1.35	1.33	+0.03
Calmar ratio: Return relative to maximum drawdown	4.55	2.51	+2.04
Martin ratio: Return relative to average drawdown	15.80	11.15	+4.65

TEXN vs. SPY - Sharpe Ratio Comparison

The current TEXN Sharpe Ratio is 1.98, which is comparable to the SPY Sharpe Ratio of 1.79. The chart below compares the historical Sharpe Ratios of TEXN and SPY, 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

TEXN vs. SPY - Drawdown Comparison

The maximum TEXN drawdown since its inception was -6.34%, smaller than the maximum SPY drawdown of -55.19%. Use the drawdown chart below to compare losses from any high point for TEXN and SPY.

Drawdown Indicators

	TEXN	SPY	Difference
Max Drawdown Largest peak-to-trough decline	-6.34%	-55.19%	+48.85%
Max Drawdown (1Y) Largest decline over 1 year	-6.34%	-8.88%	+2.54%
Max Drawdown (3Y) Largest decline over 3 years	—	-18.76%	—
Max Drawdown (5Y) Largest decline over 5 years	—	-24.50%	—
Max Drawdown (10Y) Largest decline over 10 years	—	-33.72%	—
Current Drawdown Current decline from peak	-5.76%	-3.22%	-2.54%
Average Drawdown Average peak-to-trough decline	-1.26%	-9.03%	+7.77%
Ulcer Index Depth and duration of drawdowns from previous peaks	1.82%	1.99%	-0.17%

Volatility

TEXN vs. SPY - Volatility Comparison

iShares Texas Equity ETF (TEXN) and State Street SPDR S&P 500 ETF (SPY) have volatilities of 4.95% and 4.85%, respectively, indicating that both stocks experience similar levels of price fluctuations. This suggests that the risk associated with both stocks, as measured by volatility, is nearly the same. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	TEXN	SPY	Difference
Volatility (1M) Calculated over the trailing 1-month period	4.95%	4.85%	+0.10%
Volatility (6M) Calculated over the trailing 6-month period	10.25%	9.81%	+0.44%
Volatility (1Y) Calculated over the trailing 1-year period	14.51%	12.47%	+2.04%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	14.51%	17.15%	-2.64%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	14.51%	17.95%	-3.44%

TEXN vs. SPY - Expense Ratio Comparison

TEXN has a 0.20% expense ratio, which is higher than SPY's 0.09% 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

TEXN vs. SPY - Dividend Comparison

TEXN's dividend yield for the trailing twelve months is around 1.42%, more than SPY's 1.03% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
SPY State Street SPDR S&P 500 ETF	1.03%	1.07%	1.21%	1.40%	1.65%	1.20%	1.52%	1.75%	2.04%	1.80%	2.03%	2.06%
TEXN iShares Texas Equity ETF	1.42%	0.86%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%

Frequently Asked Questions

Can I hold both TEXN and SPY in my portfolio?

TEXN and SPY have a correlation of 0.58, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, TEXN or SPY?

TEXN has higher volatility (4.95%) compared to SPY (4.85%). In terms of maximum drawdown, TEXN dropped -6.34% vs SPY's -55.19%.

Which ETF is better, TEXN or SPY?

On 1-year performance, TEXN leads with 28.67% vs 22.18% for SPY. On fees, SPY is cheaper at 0.09% per year. On volatility, SPY has been the lower-risk option at 4.85%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, TEXN or SPY?

Over the 1-year period, TEXN has performed better with a 28.67% return vs 22.18%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, TEXN or SPY?

SPY is cheaper with a 0.09% expense ratio, compared with 0.20% for TEXN.

Which ETF pays a higher dividend yield, TEXN or SPY?

TEXN has the higher dividend yield at 1.42%, compared with 1.03% for SPY.

What is the main difference between TEXN and SPY?

TEXN is categorized as Large Cap Blend Equities, while SPY is S&P 500. TEXN tracks Russell Texas Equity Index, while SPY tracks S&P 500 Index. They also come from different issuers: iShares and State Street. Their fees differ too: 0.20% for TEXN and 0.09% for SPY.

Which has better risk-adjusted returns?

TEXN currently has the higher Sharpe Ratio (1.98 vs 1.79), 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.