XOP vs. SPY

Last updated Jun 23, 2026

XOP (SPDR S&P Oil & Gas Exploration & Production ETF) and SPY (State Street SPDR S&P 500 ETF) are both exchange-traded funds - XOP is a Energy Equities fund tracking the S&P Oil & Gas Exploration & Production Select Industry, while SPY is a S&P 500 fund tracking the S&P 500 Index. Both are passively managed. Over the past 10 years, XOP returned 3.08%/yr vs 15.70%/yr for SPY. A 0.54 correlation means they provide meaningful diversification when combined. XOP charges 0.35%/yr vs 0.09%/yr for SPY.

Performance

XOP vs. SPY - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in SPDR S&P Oil & Gas Exploration & Production ETF (XOP) 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, XOP achieves a 23.78% return, which is significantly higher than SPY's 9.74% return. Over the past 10 years, XOP has underperformed SPY with an annualized return of 3.08%, while SPY has yielded a comparatively higher 15.70% annualized return.

XOP

• 1D: 1.50%
• 1M: -9.47%
• YTD: 23.78%
• 6M: 24.78%
• 1Y: 18.46%
• 3Y*: 10.97%
• 5Y*: 12.47%
• 10Y*: 3.08%

SPY

• 1D: -0.31%
• 1M: 0.09%
• YTD: 9.74%
• 6M: 9.27%
• 1Y: 26.65%
• 3Y*: 21.27%
• 5Y*: 13.51%
• 10Y*: 15.70%

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

XOP vs. SPY - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
XOP SPDR S&P Oil & Gas Exploration & Production ETF	23.78%	-2.15%	-1.00%	3.56%	45.37%	66.74%	-36.40%	-9.44%	-28.10%	-9.47%
SPY State Street SPDR S&P 500 ETF	9.74%	17.72%	24.89%	26.18%	-18.18%	28.73%	18.33%	31.22%	-4.57%	21.71%

Correlation

The correlation between XOP and SPY 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	0.19
Correlation (5Y) Calculated over the trailing 5-year period	0.34
Correlation (10Y) Calculated over the trailing 10-year period	0.42
Correlation (All Time) Calculated using the full available price history since Jun 22, 2006	0.54

The correlation between XOP and SPY shifts across timeframes, from -0.11 (1 year) to 0.54 (all time), reflecting how their relationship changes across market environments.

XOP vs. SPY - Sectors Allocation Comparison

Sectors	XOP	SPY
Energy	96.8%	3.1%
Basic Materials	3.2%	1.7%
Communication Services	-	10.6%
Consumer Cyclical	-	9.9%
Consumer Defensive	-	4.5%
Financial Services	-	11.1%
Healthcare	-	8.3%
Industrials	-	7.8%
Real Estate	-	1.8%
Technology	-	39.0%
Utilities	-	2.1%

Return for Risk

XOP vs. SPY — Risk / Return Rank

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

XOP

XOP Risk / Return Rank: 20
XOP Sharpe Ratio Rank: 19
XOP Sortino Ratio Rank: 19
XOP Omega Ratio Rank: 18
XOP Calmar Ratio Rank: 22
XOP Martin Ratio Rank: 23

SPY

SPY Risk / Return Rank: 68
SPY Sharpe Ratio Rank: 69
SPY Sortino Ratio Rank: 66
SPY Omega Ratio Rank: 68
SPY Calmar Ratio Rank: 63
SPY Martin Ratio Rank: 74

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.

XOP vs. SPY - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for SPDR S&P Oil & Gas Exploration & Production ETF (XOP) 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.

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.

	XOP	SPY	Difference
Sharpe ratio: Return per unit of total volatility	0.66	2.16	-1.50
Sortino ratio: Return per unit of downside risk	1.03	2.91	-1.88
Omega ratio: Gain probability vs. loss probability	1.12	1.39	-0.27
Calmar ratio: Return relative to maximum drawdown	1.00	3.01	-2.01
Martin ratio: Return relative to average drawdown	2.84	13.54	-10.69

XOP vs. SPY - Sharpe Ratio Comparison

The current XOP Sharpe Ratio is 0.66, which is lower than the SPY Sharpe Ratio of 2.16. The chart below compares the historical Sharpe Ratios of XOP and SPY, 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

XOP vs. SPY - Drawdown Comparison

The maximum XOP drawdown since its inception was -90.27%, which is greater than SPY's maximum drawdown of -55.19%. Use the drawdown chart below to compare losses from any high point for XOP and SPY.

Drawdown Indicators

	XOP	SPY	Difference
Max Drawdown Largest peak-to-trough decline	-90.27%	-55.19%	-35.08%
Max Drawdown (1Y) Largest decline over 1 year	-18.50%	-8.88%	-9.62%
Max Drawdown (3Y) Largest decline over 3 years	-34.98%	-18.76%	-16.22%
Max Drawdown (5Y) Largest decline over 5 years	-34.98%	-24.50%	-10.48%
Max Drawdown (10Y) Largest decline over 10 years	-82.61%	-33.72%	-48.89%
Current Drawdown Current decline from peak	-42.15%	-1.75%	-40.40%
Average Drawdown Average peak-to-trough decline	-42.58%	-9.04%	-33.54%
Ulcer Index Depth and duration of drawdowns from previous peaks	6.62%	1.97%	+4.65%

Volatility

XOP vs. SPY - Volatility Comparison

SPDR S&P Oil & Gas Exploration & Production ETF (XOP) has a higher volatility of 9.19% compared to State Street SPDR S&P 500 ETF (SPY) at 4.64%. This indicates that XOP'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.

Volatility by Period

	XOP	SPY	Difference
Volatility (1M) Calculated over the trailing 1-month period	9.19%	4.64%	+4.55%
Volatility (6M) Calculated over the trailing 6-month period	22.09%	9.75%	+12.34%
Volatility (1Y) Calculated over the trailing 1-year period	28.36%	12.43%	+15.93%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	33.88%	17.14%	+16.74%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	40.29%	17.99%	+22.30%

XOP vs. SPY - Expense Ratio Comparison

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

Dividends

XOP vs. SPY - Dividend Comparison

XOP's dividend yield for the trailing twelve months is around 2.58%, more than SPY's 1.01% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
SPY State Street SPDR S&P 500 ETF	1.01%	1.07%	1.21%	1.40%	1.65%	1.20%	1.52%	1.75%	2.04%	1.80%	2.03%	2.06%
XOP SPDR S&P Oil & Gas Exploration & Production ETF	2.58%	2.62%	2.45%	2.63%	2.47%	1.61%	2.34%	1.47%	0.99%	0.76%	0.76%	2.21%

Frequently Asked Questions

Can I hold both XOP and SPY in my portfolio?

XOP and SPY 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, XOP or SPY?

XOP has higher volatility (9.19%) compared to SPY (4.64%). In terms of maximum drawdown, XOP dropped -90.27% vs SPY's -55.19%.

Which ETF is better, XOP or SPY?

On 10-year performance, SPY leads with 15.70% vs 3.08% for XOP. On fees, SPY is cheaper at 0.09% per year. On volatility, SPY has been the lower-risk option at 4.64%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, XOP or SPY?

Over the 10-year period, SPY has performed better with a 15.70% return vs 3.08%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, XOP or SPY?

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

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

XOP has the higher dividend yield at 2.58%, compared with 1.01% for SPY.

What is the main difference between XOP and SPY?

XOP is categorized as Energy Equities, while SPY is S&P 500. XOP tracks S&P Oil & Gas Exploration & Production Select Industry, while SPY tracks S&P 500 Index. Their fees differ too: 0.35% for XOP and 0.09% for SPY.

Which has better risk-adjusted returns?

SPY currently has the higher Sharpe Ratio (2.16 vs 0.66), 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.