XLC vs. SPYM

Last updated Jun 4, 2026

XLC (Communication Services Select Sector SPDR Fund) and SPYM (State Street SPDR Portfolio S&P 500 ETF) are both exchange-traded funds - XLC is a Large Cap Growth Equities fund tracking the S&P Communication Services Select Sector Index, while SPYM is a S&P 500 fund tracking the S&P 500 Index. Both are passively managed. Over the past 5 years, XLC returned 8.28%/yr vs 13.91%/yr for SPYM. Their correlation of 0.81 suggests significant overlap in exposure. XLC charges 0.13%/yr vs 0.02%/yr for SPYM.

Performance

XLC vs. SPYM - Performance Comparison

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

Returns By Period

In the year-to-date period, XLC achieves a -4.49% return, which is significantly lower than SPYM's 10.98% return.

XLC

• 1D: -1.31%
• 1M: -3.46%
• YTD: -4.49%
• 6M: -2.02%
• 1Y: 11.67%
• 3Y*: 22.40%
• 5Y*: 8.28%
• 10Y*: —

SPYM

• 1D: -0.66%
• 1M: 5.06%
• YTD: 10.98%
• 6M: 10.98%
• 1Y: 28.09%
• 3Y*: 22.46%
• 5Y*: 13.91%
• 10Y*: 15.62%

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

XLC vs. SPYM - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018
XLC Communication Services Select Sector SPDR Fund	-4.49%	23.08%	34.71%	52.82%	-37.63%	15.96%	26.90%	31.05%	-16.88%
SPYM State Street SPDR Portfolio S&P 500 ETF	10.98%	17.79%	25.00%	26.24%	-18.09%	28.78%	18.49%	31.99%	-8.81%

Correlation

The correlation between XLC and SPYM 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 20, 2018	0.81

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

XLC vs. SPYM - Sectors Allocation Comparison

Sectors	XLC	SPYM
Communication Services	95.1%	10.6%
Technology	4.7%	38.5%
Basic Materials	-	1.7%
Consumer Cyclical	-	9.9%
Consumer Defensive	-	4.6%
Energy	-	3.2%
Financial Services	-	11.1%
Healthcare	-	8.4%
Industrials	-	7.6%
Real Estate	-	1.8%
Utilities	-	2.5%

Return for Risk

XLC vs. SPYM — Risk / Return Rank

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

XLC

XLC Risk / Return Rank: 24
XLC Sharpe Ratio Rank: 24
XLC Sortino Ratio Rank: 25
XLC Omega Ratio Rank: 22
XLC Calmar Ratio Rank: 23
XLC Martin Ratio Rank: 26

SPYM

SPYM Risk / Return Rank: 70
SPYM Sharpe Ratio Rank: 71
SPYM Sortino Ratio Rank: 70
SPYM Omega Ratio Rank: 71
SPYM Calmar Ratio Rank: 62
SPYM Martin Ratio Rank: 76

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.

XLC vs. SPYM - Risk-Adjusted Trends Comparison

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

	XLC	SPYM	Difference
Sharpe ratio: Return per unit of total volatility	0.88	2.39	-1.51
Sortino ratio: Return per unit of downside risk	1.36	3.27	-1.91
Omega ratio: Gain probability vs. loss probability	1.15	1.44	-0.28
Calmar ratio: Return relative to maximum drawdown	1.11	3.17	-2.06
Martin ratio: Return relative to average drawdown	3.72	14.76	-11.03
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month.

XLC vs. SPYM - Sharpe Ratio Comparison

The current XLC Sharpe Ratio is 0.88, which is lower than the SPYM Sharpe Ratio of 2.39. The chart below compares the historical Sharpe Ratios of XLC and SPYM, 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

	XLC	SPYM	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	0.88	2.39	-1.51
Sharpe Ratio (5Y) Calculated over the trailing 5-year period	0.40	0.83	-0.43
Sharpe Ratio (10Y) Calculated over the trailing 10-year period	—	0.87	—
Sharpe Ratio (All Time) Calculated using the full available price history	0.53	0.62	-0.09

Drawdowns

XLC vs. SPYM - Drawdown Comparison

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

Drawdown Indicators

	XLC	SPYM	Difference
Max Drawdown Largest peak-to-trough decline	-46.65%	-54.46%	+7.81%
Max Drawdown (1Y) Largest decline over 1 year	-10.57%	-8.90%	-1.67%
Max Drawdown (3Y) Largest decline over 3 years	-17.97%	-18.72%	+0.75%
Max Drawdown (5Y) Largest decline over 5 years	-46.65%	-24.48%	-22.17%
Max Drawdown (10Y) Largest decline over 10 years	—	-33.87%	—
Current Drawdown Current decline from peak	-6.36%	-0.66%	-5.70%
Average Drawdown Average peak-to-trough decline	-10.60%	-7.15%	-3.45%
Ulcer Index Depth and duration of drawdowns from previous peaks	3.14%	1.91%	+1.23%

Volatility

XLC vs. SPYM - Volatility Comparison

Communication Services Select Sector SPDR Fund (XLC) has a higher volatility of 3.67% compared to State Street SPDR Portfolio S&P 500 ETF (SPYM) at 2.83%. This indicates that XLC's price experiences larger fluctuations and is considered to be riskier than SPYM based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	XLC	SPYM	Difference
Volatility (1M) Calculated over the trailing 1-month period	3.67%	2.83%	+0.84%
Volatility (6M) Calculated over the trailing 6-month period	9.57%	8.90%	+0.67%
Volatility (1Y) Calculated over the trailing 1-year period	13.26%	11.80%	+1.46%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	20.68%	16.80%	+3.88%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	22.20%	18.00%	+4.20%

XLC vs. SPYM - Expense Ratio Comparison

XLC has a 0.13% expense ratio, which is higher than SPYM's 0.02% 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

XLC vs. SPYM - Dividend Comparison

XLC's dividend yield for the trailing twelve months is around 1.25%, more than SPYM's 1.00% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
SPYM State Street SPDR Portfolio S&P 500 ETF	1.00%	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 XLC and SPYM in my portfolio?

XLC and SPYM 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, XLC or SPYM?

XLC has higher volatility (3.67%) compared to SPYM (2.83%). In terms of maximum drawdown, XLC dropped -46.65% vs SPYM's -54.46%.

Which ETF is better, XLC or SPYM?

On 5-year performance, SPYM leads with 13.91% vs 8.28% for XLC. On fees, SPYM is cheaper at 0.02% per year. On volatility, SPYM has been the lower-risk option at 2.83%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, XLC or SPYM?

Over the 5-year period, SPYM has performed better with a 13.91% return vs 8.28%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, XLC or SPYM?

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

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

XLC has the higher dividend yield at 1.25%, compared with 1.00% for SPYM.

What is the main difference between XLC and SPYM?

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

Which has better risk-adjusted returns?

SPYM currently has the higher Sharpe Ratio (2.39 vs 0.88), 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.