XLC vs. SPY
Compare and contrast key facts about Communication Services Select Sector SPDR Fund (XLC) and SPDR S&P 500 ETF (SPY).
XLC and SPY are both exchange-traded funds (ETFs), meaning they are traded on stock exchanges and can be bought and sold throughout the day. XLC is a passively managed fund by State Street that tracks the performance of the S&P Communication Services Select Sector Index. It was launched on Jun 18, 2018. SPY is a passively managed fund by State Street that tracks the performance of the S&P 500 Index. It was launched on Jan 22, 1993. Both XLC and SPY are passive ETFs, meaning that they are not actively managed but aim to replicate the performance of the underlying index as closely as possible.
Scroll down to visually compare performance, riskiness, drawdowns, and other indicators and decide which better suits your portfolio: XLC or SPY.
Key characteristics
| XLC | SPY | |
|---|---|---|
| YTD Return | 10.69% | 7.90% |
| 1Y Return | 40.53% | 28.03% |
| 3Y Return (Ann) | 2.32% | 8.75% |
| 5Y Return (Ann) | 10.86% | 13.52% |
| Sharpe Ratio | 2.29 | 2.33 |
| Daily Std Dev | 16.68% | 11.63% |
| Max Drawdown | -46.66% | -55.19% |
| Current Drawdown | -4.40% | -2.27% |
Correlation
The correlation between XLC and SPY is 0.84, which is considered to be high. That indicates a strong positive relationship between their price movements. Having highly-correlated positions in a portfolio may signal a lack of diversification, potentially leading to increased risk during market downturns.
Performance
XLC vs. SPY - Performance Comparison
In the year-to-date period, XLC achieves a 10.69% return, which is significantly higher than SPY's 7.90% return. The chart below displays the growth of a $10,000 investment in both assets, with all prices adjusted for splits and dividends.
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XLC vs. SPY - Expense Ratio Comparison
XLC has a 0.13% 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%.
Risk-Adjusted Performance
XLC vs. SPY - Risk-Adjusted Performance Comparison
This table presents a comparison of risk-adjusted performance metrics for Communication Services Select Sector SPDR Fund (XLC) and 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.
Dividends
XLC vs. SPY - Dividend Comparison
XLC's dividend yield for the trailing twelve months is around 0.82%, less than SPY's 1.31% yield.
| TTM | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 | 2014 | 2013 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
XLC Communication Services Select Sector SPDR Fund | 0.82% | 0.82% | 1.10% | 0.74% | 0.68% | 0.82% | 0.64% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% |
SPY SPDR S&P 500 ETF | 1.31% | 1.40% | 1.65% | 1.20% | 1.52% | 1.75% | 2.04% | 1.80% | 2.03% | 2.06% | 1.87% | 1.81% |
Drawdowns
XLC vs. SPY - Drawdown Comparison
The maximum XLC drawdown since its inception was -46.66%, smaller than the maximum SPY drawdown of -55.19%. Use the drawdown chart below to compare losses from any high point for XLC and SPY. For additional features, visit the drawdowns tool.
Volatility
XLC vs. SPY - Volatility Comparison
Communication Services Select Sector SPDR Fund (XLC) has a higher volatility of 6.33% compared to SPDR S&P 500 ETF (SPY) at 4.08%. This indicates that XLC's price experiences larger fluctuations and is considered to be riskier than SPY based on this measure. The chart below showcases a comparison of their rolling one-month volatility.