XLII vs. SPY

Last updated Jun 4, 2026

XLII (State Street Industrial Select Sector SPDR Premium Income ETF) and SPY (State Street SPDR S&P 500 ETF) are both exchange-traded funds - XLII is a Derivative Income fund actively managed by State Street, while SPY is a S&P 500 fund tracking the S&P 500 Index. XLII is actively managed, while SPY is passively managed. A 0.71 correlation means they provide meaningful diversification when combined. XLII charges 0.35%/yr vs 0.09%/yr for SPY.

Performance

XLII vs. SPY - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in State Street Industrial Select Sector SPDR Premium Income ETF (XLII) 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, XLII achieves a 6.73% return, which is significantly lower than SPY's 10.91% return.

XLII

• 1D: -0.15%
• 1M: 2.45%
• YTD: 6.73%
• 6M: 8.74%
• 1Y: —
• 3Y*: —
• 5Y*: —
• 10Y*: —

SPY

• 1D: -0.70%
• 1M: 5.05%
• YTD: 10.91%
• 6M: 10.91%
• 1Y: 27.98%
• 3Y*: 22.35%
• 5Y*: 13.83%
• 10Y*: 15.49%

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

XLII vs. SPY - Yearly Performance Comparison

	2026 (YTD)	2025
XLII State Street Industrial Select Sector SPDR Premium Income ETF	6.73%	6.62%
SPY State Street SPDR S&P 500 ETF	10.91%	8.10%

Correlation

The correlation between XLII and SPY is 0.71, which is moderate. They share some common price drivers but move independently often enough to provide real diversification benefit when combined.

	Correlation
Correlation (All Time) Calculated using the full available price history since Jul 31, 2025	0.71

XLII vs. SPY - Sectors Allocation Comparison

Sectors	XLII	SPY
Financial Services	100.3%	11.8%
Basic Materials	-	1.8%
Communication Services	-	11.3%
Consumer Cyclical	-	10.3%
Consumer Defensive	-	4.8%
Energy	-	3.6%
Healthcare	-	8.4%
Industrials	-	7.8%
Real Estate	-	1.9%
Technology	-	35.9%
Utilities	-	2.4%

Return for Risk

XLII vs. SPY — Risk / Return Rank

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

SPY

SPY Risk / Return Rank: 70
SPY Sharpe Ratio Rank: 71
SPY Sortino Ratio Rank: 69
SPY Omega Ratio Rank: 70
SPY Calmar Ratio Rank: 62
SPY Martin Ratio Rank: 75

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.

XLII vs. SPY - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for State Street Industrial Select Sector SPDR Premium Income ETF (XLII) 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.

Risk / return metrics aren't available yet — we need at least 12 months of trading data to calculate them.

Sharpe Ratios by Period

	XLII	SPY	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	—	2.38	—
Sharpe Ratio (5Y) Calculated over the trailing 5-year period	—	0.82	—
Sharpe Ratio (10Y) Calculated over the trailing 10-year period	—	0.87	—
Sharpe Ratio (All Time) Calculated using the full available price history	1.44	0.59	+0.86

Drawdowns

XLII vs. SPY - Drawdown Comparison

The maximum XLII drawdown since its inception was -10.10%, smaller than the maximum SPY drawdown of -55.19%. Use the drawdown chart below to compare losses from any high point for XLII and SPY.

Drawdown Indicators

	XLII	SPY	Difference
Max Drawdown Largest peak-to-trough decline	-10.10%	-55.19%	+45.09%
Max Drawdown (1Y) Largest decline over 1 year	—	-8.88%	—
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	-0.36%	-0.70%	+0.34%
Average Drawdown Average peak-to-trough decline	-1.34%	-9.05%	+7.71%
Ulcer Index Depth and duration of drawdowns from previous peaks	—	1.91%	—

Volatility

Volatility by Period

	XLII	SPY	Difference
Volatility (1M) Calculated over the trailing 1-month period	—	2.84%	—
Volatility (6M) Calculated over the trailing 6-month period	—	8.90%	—
Volatility (1Y) Calculated over the trailing 1-year period	11.55%	11.83%	-0.28%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	11.55%	17.05%	-5.50%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	11.55%	17.94%	-6.39%

XLII vs. SPY - Expense Ratio Comparison

XLII has a 0.35% expense ratio, which is higher than SPY's 0.09% expense ratio.

Dividends

XLII vs. SPY - Dividend Comparison

XLII's dividend yield for the trailing twelve months is around 11.29%, more than SPY's 0.98% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
SPY State Street SPDR S&P 500 ETF	0.98%	1.07%	1.21%	1.40%	1.65%	1.20%	1.52%	1.75%	2.04%	1.80%	2.03%	2.06%
XLII State Street Industrial Select Sector SPDR Premium Income ETF	11.29%	5.47%	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 XLII and SPY in my portfolio?

XLII and SPY have a correlation of 0.71, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which ETF is better, XLII or SPY?

On fees, SPY is cheaper at 0.09% per year. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF is cheaper, XLII or SPY?

SPY is cheaper with a 0.09% expense ratio, compared with 0.35% for XLII.

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

XLII has the higher dividend yield at 11.29%, compared with 0.98% for SPY.

What is the main difference between XLII and SPY?

XLII is categorized as Derivative Income, while SPY is S&P 500. Their fees differ too: 0.35% for XLII and 0.09% for SPY.