XLE vs. SPEM

Last updated Jul 21, 2026

XLE (State Street Energy Select Sector SPDR ETF) and SPEM (SPDR Portfolio Emerging Markets ETF) are both exchange-traded funds - XLE is a Energy Equities fund tracking the Energy Select Sector Index, while SPEM is a Emerging Markets Equities fund tracking the S&P Emerging BMI Index. Both are passively managed. Over the past 10 years, XLE returned 9.80%/yr vs 8.33%/yr for SPEM. A 0.55 correlation means they provide meaningful diversification when combined. XLE charges 0.08%/yr vs 0.07%/yr for SPEM.

Performance

XLE vs. SPEM - Performance Comparison

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

Returns By Period

In the year-to-date period, XLE achieves a 31.38% return, which is significantly higher than SPEM's 8.25% return. Over the past 10 years, XLE has outperformed SPEM with an annualized return of 9.80%, while SPEM has yielded a comparatively lower 8.33% annualized return.

XLE

• 1D: 0.45%
• 1M: 8.53%
• 6M: 23.17%
• YTD: 31.38%
• 1Y: 39.01%
• 3Y*: 14.81%
• 5Y*: 23.06%
• 10Y*: 9.80%
• ALL TIME*: 8.77%

SPEM

• 1D: -0.04%
• 1M: -4.53%
• 6M: 4.07%
• YTD: 8.25%
• 1Y: 18.43%
• 3Y*: 15.93%
• 5Y*: 5.77%
• 10Y*: 8.33%
• ALL TIME*: 5.47%

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

XLE vs. SPEM - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
XLE State Street Energy Select Sector SPDR ETF	31.38%	7.88%	5.56%	-0.63%	64.32%	53.28%	-32.67%	11.74%	-18.22%	-0.89%
SPEM SPDR Portfolio Emerging Markets ETF	8.25%	25.63%	11.40%	10.51%	-17.90%	1.51%	14.55%	19.69%	-13.26%	34.82%

Correlation

The correlation between XLE and SPEM is -0.11, meaning they tend to move in opposite directions. This is especially valuable for risk management - when one declines, the other has historically tended to hold steady or rise.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	-0.11
Correlation (3Y) Calculated over the trailing 3-year period	0.13
Correlation (5Y) Calculated over the trailing 5-year period	0.25
Correlation (10Y) Calculated over the trailing 10-year period	0.38
Correlation (All Time) Calculated using the full available price history since Mar 23, 2007	0.55

The correlation between XLE and SPEM shifts across timeframes, from -0.11 (1 year) to 0.55 (all time), reflecting how their relationship changes across market environments.

XLE vs. SPEM - Sectors Allocation Comparison

Sectors	XLE	SPEM
Energy	100.0%	3.8%
Basic Materials	-	7.7%
Communication Services	-	6.6%
Consumer Cyclical	-	8.9%
Consumer Defensive	-	3.7%
Financial Services	-	19.9%
Healthcare	-	3.9%
Industrials	-	8.3%
Real Estate	-	1.8%
Technology	-	32.7%
Utilities	-	2.7%

Return for Risk

XLE vs. SPEM — Risk / Return Rank

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

XLE

XLE Risk / Return Rank: 69
XLE Sharpe Ratio Rank: 78
XLE Sortino Ratio Rank: 72
XLE Omega Ratio Rank: 69
XLE Calmar Ratio Rank: 71
XLE Martin Ratio Rank: 55

SPEM

SPEM Risk / Return Rank: 40
SPEM Sharpe Ratio Rank: 39
SPEM Sortino Ratio Rank: 37
SPEM Omega Ratio Rank: 39
SPEM Calmar Ratio Rank: 42
SPEM Martin Ratio Rank: 45

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.

XLE vs. SPEM - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for State Street Energy Select Sector SPDR ETF (XLE) and SPDR Portfolio Emerging Markets ETF (SPEM). 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.

	XLE	SPEM	Difference
Sharpe ratio: Return per unit of total volatility	1.87	1.07	+0.81
Sortino ratio: Return per unit of downside risk	2.45	1.53	+0.92
Omega ratio: Gain probability vs. loss probability	1.30	1.20	+0.10
Calmar ratio: Return relative to maximum drawdown	2.62	1.63	+0.99
Martin ratio: Return relative to average drawdown	6.99	5.56	+1.42

XLE vs. SPEM - Sharpe Ratio Comparison

The current XLE Sharpe Ratio is 1.87, which is higher than the SPEM Sharpe Ratio of 1.07. The chart below compares the historical Sharpe Ratios of XLE and SPEM, 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

XLE vs. SPEM - Drawdown Comparison

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

Drawdown Indicators

	XLE	SPEM	Difference
Max Drawdown Largest peak-to-trough decline	-71.26%	-64.41%	-6.85%
Max Drawdown (1Y) Largest decline over 1 year	-14.98%	-11.36%	-3.62%
Max Drawdown (3Y) Largest decline over 3 years	-20.14%	-17.62%	-2.52%
Max Drawdown (5Y) Largest decline over 5 years	-26.04%	-30.03%	+3.99%
Max Drawdown (10Y) Largest decline over 10 years	-66.81%	-36.06%	-30.75%
Current Drawdown Current decline from peak	-6.72%	-5.57%	-1.15%
Average Drawdown Average peak-to-trough decline	-17.95%	-14.67%	-3.28%
Ulcer Index Depth and duration of drawdowns from previous peaks	5.60%	3.32%	+2.28%

Volatility

XLE vs. SPEM - Volatility Comparison

State Street Energy Select Sector SPDR ETF (XLE) and SPDR Portfolio Emerging Markets ETF (SPEM) have volatilities of 5.95% and 5.83%, 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

	XLE	SPEM	Difference
Volatility (1M) Calculated over the trailing 1-month period	5.95%	5.83%	+0.12%
Volatility (6M) Calculated over the trailing 6-month period	16.52%	15.11%	+1.41%
Volatility (1Y) Calculated over the trailing 1-year period	20.98%	17.41%	+3.57%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	25.82%	17.39%	+8.43%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	29.59%	18.77%	+10.82%

XLE vs. SPEM - Expense Ratio Comparison

XLE has a 0.08% expense ratio, which is higher than SPEM's 0.07% 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

XLE vs. SPEM - Dividend Comparison

XLE's dividend yield for the trailing twelve months is around 2.62%, more than SPEM's 2.59% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
SPEM SPDR Portfolio Emerging Markets ETF	2.59%	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	2.62%	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 XLE and SPEM in my portfolio?

XLE and SPEM have a correlation of -0.11, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, XLE or SPEM?

XLE has higher volatility (5.95%) compared to SPEM (5.83%). In terms of maximum drawdown, XLE dropped -71.26% vs SPEM's -64.41%.

Which ETF is better, XLE or SPEM?

On 10-year performance, XLE leads with 9.80% vs 8.33% for SPEM. On fees, SPEM is cheaper at 0.07% per year. On volatility, SPEM has been the lower-risk option at 5.83%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, XLE or SPEM?

Over the 10-year period, XLE has performed better with a 9.80% return vs 8.33%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, XLE or SPEM?

SPEM is cheaper with a 0.07% expense ratio, compared with 0.08% for XLE.

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

XLE has the higher dividend yield at 2.62%, compared with 2.59% for SPEM.

What is the main difference between XLE and SPEM?

XLE is categorized as Energy Equities, while SPEM is Emerging Markets Equities. XLE tracks Energy Select Sector Index, while SPEM tracks S&P Emerging BMI Index. Their fees differ too: 0.08% for XLE and 0.07% for SPEM.

Which has better risk-adjusted returns?

XLE currently has the higher Sharpe Ratio (1.87 vs 1.07), 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.