XSLV vs. SPY

Last updated Jun 23, 2026

XSLV (Invesco S&P SmallCap Low Volatility ETF) and SPY (State Street SPDR S&P 500 ETF) are both exchange-traded funds - XSLV is a Volatility Hedged Equity fund tracking the S&P SmallCap 600 Low Volatility Index, while SPY is a S&P 500 fund tracking the S&P 500 Index. Both are passively managed. Over the past 10 years, XSLV returned 6.00%/yr vs 15.70%/yr for SPY. A 0.70 correlation means they provide meaningful diversification when combined. XSLV charges 0.25%/yr vs 0.09%/yr for SPY.

Performance

XSLV vs. SPY - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in Invesco S&P SmallCap Low Volatility ETF (XSLV) 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, XSLV achieves a 10.38% return, which is significantly higher than SPY's 9.74% return. Over the past 10 years, XSLV has underperformed SPY with an annualized return of 6.00%, while SPY has yielded a comparatively higher 15.70% annualized return.

XSLV

• 1D: 0.37%
• 1M: 1.87%
• YTD: 10.38%
• 6M: 8.81%
• 1Y: 15.43%
• 3Y*: 11.50%
• 5Y*: 4.06%
• 10Y*: 6.00%

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)

XSLV vs. SPY - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
XSLV Invesco S&P SmallCap Low Volatility ETF	10.38%	0.31%	9.81%	1.34%	-11.83%	29.34%	-17.40%	22.35%	-5.41%	8.57%
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 XSLV and SPY is 0.37, which is low. Their price movements are largely independent, making them effective diversification partners.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	0.37
Correlation (3Y) Calculated over the trailing 3-year period	0.54
Correlation (5Y) Calculated over the trailing 5-year period	0.64
Correlation (10Y) Calculated over the trailing 10-year period	0.66
Correlation (All Time) Calculated using the full available price history since Feb 15, 2013	0.70

Over the past year, the correlation between XSLV and SPY has dropped to 0.37 - well below their long-term average of 0.70, suggesting their price drivers have been diverging.

XSLV vs. SPY - Sectors Allocation Comparison

Sectors	XSLV	SPY
Financial Services	43.2%	11.1%
Real Estate	28.5%	1.8%
Utilities	9.1%	2.1%
Industrials	7.2%	7.8%
Consumer Defensive	3.9%	4.5%
Basic Materials	2.7%	1.7%
Consumer Cyclical	2.3%	9.9%
Healthcare	1.5%	8.3%
Communication Services	1.1%	10.6%
Technology	0.9%	39.0%
Energy	0.8%	3.1%

Return for Risk

XSLV vs. SPY — Risk / Return Rank

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

XSLV

XSLV Risk / Return Rank: 36
XSLV Sharpe Ratio Rank: 33
XSLV Sortino Ratio Rank: 34
XSLV Omega Ratio Rank: 30
XSLV Calmar Ratio Rank: 43
XSLV Martin Ratio Rank: 39

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.

XSLV vs. SPY - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Invesco S&P SmallCap Low Volatility ETF (XSLV) 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.

	XSLV	SPY	Difference
Sharpe ratio: Return per unit of total volatility	1.15	2.16	-1.00
Sortino ratio: Return per unit of downside risk	1.75	2.91	-1.16
Omega ratio: Gain probability vs. loss probability	1.20	1.39	-0.19
Calmar ratio: Return relative to maximum drawdown	2.08	3.01	-0.93
Martin ratio: Return relative to average drawdown	5.90	13.54	-7.63

XSLV vs. SPY - Sharpe Ratio Comparison

The current XSLV Sharpe Ratio is 1.15, which is lower than the SPY Sharpe Ratio of 2.16. The chart below compares the historical Sharpe Ratios of XSLV 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

XSLV vs. SPY - Drawdown Comparison

The maximum XSLV drawdown since its inception was -44.34%, smaller than the maximum SPY drawdown of -55.19%. Use the drawdown chart below to compare losses from any high point for XSLV and SPY.

Drawdown Indicators

	XSLV	SPY	Difference
Max Drawdown Largest peak-to-trough decline	-44.34%	-55.19%	+10.85%
Max Drawdown (1Y) Largest decline over 1 year	-7.46%	-8.88%	+1.42%
Max Drawdown (3Y) Largest decline over 3 years	-18.35%	-18.76%	+0.41%
Max Drawdown (5Y) Largest decline over 5 years	-24.72%	-24.50%	-0.22%
Max Drawdown (10Y) Largest decline over 10 years	-44.34%	-33.72%	-10.62%
Current Drawdown Current decline from peak	-1.38%	-1.75%	+0.37%
Average Drawdown Average peak-to-trough decline	-7.26%	-9.04%	+1.78%
Ulcer Index Depth and duration of drawdowns from previous peaks	2.62%	1.97%	+0.65%

Volatility

XSLV vs. SPY - Volatility Comparison

The current volatility for Invesco S&P SmallCap Low Volatility ETF (XSLV) is 4.39%, while State Street SPDR S&P 500 ETF (SPY) has a volatility of 4.64%. This indicates that XSLV experiences smaller price fluctuations and is considered to be less risky than SPY based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	XSLV	SPY	Difference
Volatility (1M) Calculated over the trailing 1-month period	4.39%	4.64%	-0.25%
Volatility (6M) Calculated over the trailing 6-month period	9.33%	9.75%	-0.42%
Volatility (1Y) Calculated over the trailing 1-year period	13.46%	12.43%	+1.03%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	16.69%	17.14%	-0.45%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	19.96%	17.99%	+1.97%

XSLV vs. SPY - Expense Ratio Comparison

XSLV has a 0.25% 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%.

Dividends

XSLV vs. SPY - Dividend Comparison

XSLV's dividend yield for the trailing twelve months is around 2.79%, 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%
XSLV Invesco S&P SmallCap Low Volatility ETF	2.79%	2.14%	2.55%	2.35%	2.78%	1.05%	2.49%	2.43%	2.75%	1.87%	1.96%	2.20%

Frequently Asked Questions

Can I hold both XSLV and SPY in my portfolio?

XSLV and SPY have a correlation of 0.37, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, XSLV or SPY?

SPY has higher volatility (4.64%) compared to XSLV (4.39%). In terms of maximum drawdown, XSLV dropped -44.34% vs SPY's -55.19%.

Which ETF is better, XSLV or SPY?

On 10-year performance, SPY leads with 15.70% vs 6.00% for XSLV. On fees, SPY is cheaper at 0.09% per year. On volatility, XSLV has been the lower-risk option at 4.39%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, XSLV or SPY?

Over the 10-year period, SPY has performed better with a 15.70% return vs 6.00%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, XSLV or SPY?

SPY is cheaper with a 0.09% expense ratio, compared with 0.25% for XSLV.

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

XSLV has the higher dividend yield at 2.79%, compared with 1.01% for SPY.

What is the main difference between XSLV and SPY?

XSLV is categorized as Volatility Hedged Equity, while SPY is S&P 500. XSLV tracks S&P SmallCap 600 Low Volatility Index, while SPY tracks S&P 500 Index. They also come from different issuers: Invesco and State Street. Their fees differ too: 0.25% for XSLV and 0.09% for SPY.

Which has better risk-adjusted returns?

SPY currently has the higher Sharpe Ratio (2.16 vs 1.15), 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.