XLY vs. SPY
Compare and contrast key facts about Consumer Discretionary Select Sector SPDR Fund (XLY) and SPDR S&P 500 ETF (SPY).
XLY and SPY are both exchange-traded funds (ETFs), meaning they are traded on stock exchanges and can be bought and sold throughout the day. XLY is a passively managed fund by State Street that tracks the performance of the Consumer Discretionary Select Sector Index. It was launched on Dec 16, 1998. 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 XLY 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: XLY or SPY.
Key characteristics
| XLY | SPY | |
|---|---|---|
| YTD Return | -1.41% | 7.26% |
| 1Y Return | 20.20% | 25.03% |
| 3Y Return (Ann) | 0.33% | 8.37% |
| 5Y Return (Ann) | 8.85% | 13.44% |
| 10Y Return (Ann) | 12.05% | 12.49% |
| Sharpe Ratio | 1.33 | 2.35 |
| Daily Std Dev | 17.52% | 11.68% |
| Max Drawdown | -59.05% | -55.19% |
| Current Drawdown | -15.04% | -2.85% |
Correlation
The correlation between XLY and SPY is 0.83, 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
XLY vs. SPY - Performance Comparison
In the year-to-date period, XLY achieves a -1.41% return, which is significantly lower than SPY's 7.26% return. Both investments have delivered pretty close results over the past 10 years, with XLY having a 12.05% annualized return and SPY not far ahead at 12.49%. 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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XLY vs. SPY - Expense Ratio Comparison
XLY 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
XLY vs. SPY - Risk-Adjusted Performance Comparison
This table presents a comparison of risk-adjusted performance metrics for Consumer Discretionary Select Sector SPDR Fund (XLY) 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
XLY vs. SPY - Dividend Comparison
XLY's dividend yield for the trailing twelve months is around 0.77%, less than SPY's 1.32% yield.
| TTM | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 | 2014 | 2013 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
XLY Consumer Discretionary Select Sector SPDR Fund | 0.77% | 0.78% | 1.00% | 0.53% | 0.82% | 1.28% | 1.34% | 1.20% | 1.71% | 1.43% | 1.31% | 1.16% |
SPY SPDR S&P 500 ETF | 1.32% | 1.40% | 1.65% | 1.20% | 1.52% | 1.75% | 2.04% | 1.80% | 2.03% | 2.06% | 1.87% | 1.81% |
Drawdowns
XLY vs. SPY - Drawdown Comparison
The maximum XLY drawdown since its inception was -59.05%, which is greater than SPY's maximum drawdown of -55.19%. Use the drawdown chart below to compare losses from any high point for XLY and SPY. For additional features, visit the drawdowns tool.
Volatility
XLY vs. SPY - Volatility Comparison
Consumer Discretionary Select Sector SPDR Fund (XLY) has a higher volatility of 4.37% compared to SPDR S&P 500 ETF (SPY) at 3.58%. This indicates that XLY'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.