XSW vs. SPYM

Last updated Jun 24, 2026

XSW (SPDR S&P Software & Services ETF) and SPYM (State Street SPDR Portfolio S&P 500 ETF) are both exchange-traded funds - XSW is a Technology Equities fund tracking the S&P Software & Services Select Industry Index, while SPYM is a S&P 500 fund tracking the S&P 500 Index. Both are passively managed. Over the past 10 years, XSW returned 12.80%/yr vs 15.61%/yr for SPYM. A 0.73 correlation means they provide meaningful diversification when combined. XSW charges 0.35%/yr vs 0.02%/yr for SPYM.

Performance

XSW vs. SPYM - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in SPDR S&P Software & Services ETF (XSW) and State Street SPDR Portfolio S&P 500 ETF (SPYM). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, XSW achieves a -13.68% return, which is significantly lower than SPYM's 8.21% return. Over the past 10 years, XSW has underperformed SPYM with an annualized return of 12.80%, while SPYM has yielded a comparatively higher 15.61% annualized return.

XSW

• 1D: 0.86%
• 1M: -2.12%
• YTD: -13.68%
• 6M: -15.49%
• 1Y: -10.86%
• 3Y*: 8.06%
• 5Y*: -1.20%
• 10Y*: 12.80%

SPYM

• 1D: -1.44%
• 1M: -1.32%
• YTD: 8.21%
• 6M: 7.24%
• 1Y: 23.73%
• 3Y*: 20.77%
• 5Y*: 13.13%
• 10Y*: 15.61%

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

XSW vs. SPYM - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
XSW SPDR S&P Software & Services ETF	-13.68%	-0.90%	25.81%	38.60%	-34.22%	7.47%	52.41%	36.50%	7.67%	27.94%
SPYM State Street SPDR Portfolio S&P 500 ETF	8.21%	17.79%	25.00%	26.24%	-18.09%	28.78%	18.49%	31.99%	-4.78%	21.30%

Correlation

The correlation between XSW and SPYM is 0.59, which is moderate. They share some common price drivers but move independently often enough to provide real diversification benefit when combined.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	0.59
Correlation (3Y) Calculated over the trailing 3-year period	0.71
Correlation (5Y) Calculated over the trailing 5-year period	0.77
Correlation (10Y) Calculated over the trailing 10-year period	0.77
Correlation (All Time) Calculated using the full available price history since Sep 29, 2011	0.73

The correlation between XSW and SPYM shifts across timeframes, from 0.59 (1 year) to 0.77 (5 years), reflecting how their relationship changes across market environments.

XSW vs. SPYM - Sectors Allocation Comparison

Sectors	XSW	SPYM
Technology	85.9%	38.0%
Financial Services	9.0%	11.9%
Communication Services	2.7%	10.1%
Consumer Cyclical	1.1%	9.4%
Healthcare	0.8%	8.5%
Industrials	0.6%	8.0%
Basic Materials	-	1.8%
Consumer Defensive	-	4.6%
Energy	-	3.1%
Real Estate	-	1.8%
Utilities	-	2.6%

Return for Risk

XSW vs. SPYM — Risk / Return Rank

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

XSW

XSW Risk / Return Rank: 6
XSW Sharpe Ratio Rank: 6
XSW Sortino Ratio Rank: 6
XSW Omega Ratio Rank: 6
XSW Calmar Ratio Rank: 6
XSW Martin Ratio Rank: 6

SPYM

SPYM Risk / Return Rank: 59
SPYM Sharpe Ratio Rank: 59
SPYM Sortino Ratio Rank: 56
SPYM Omega Ratio Rank: 58
SPYM Calmar Ratio Rank: 56
SPYM Martin Ratio Rank: 67

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.

XSW vs. SPYM - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for SPDR S&P Software & Services ETF (XSW) and State Street SPDR Portfolio S&P 500 ETF (SPYM). 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.

	XSW	SPYM	Difference
Sharpe ratio: Return per unit of total volatility	-0.38	1.92	-2.30
Sortino ratio: Return per unit of downside risk	-0.34	2.61	-2.95
Omega ratio: Gain probability vs. loss probability	0.96	1.35	-0.39
Calmar ratio: Return relative to maximum drawdown	-0.32	2.68	-3.00
Martin ratio: Return relative to average drawdown	-0.67	11.98	-12.65

XSW vs. SPYM - Sharpe Ratio Comparison

The current XSW Sharpe Ratio is -0.38, which is lower than the SPYM Sharpe Ratio of 1.92. The chart below compares the historical Sharpe Ratios of XSW and SPYM, 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

XSW vs. SPYM - Drawdown Comparison

The maximum XSW drawdown since its inception was -45.38%, smaller than the maximum SPYM drawdown of -54.46%. Use the drawdown chart below to compare losses from any high point for XSW and SPYM.

Drawdown Indicators

	XSW	SPYM	Difference
Max Drawdown Largest peak-to-trough decline	-45.38%	-54.46%	+9.08%
Max Drawdown (1Y) Largest decline over 1 year	-33.75%	-8.90%	-24.85%
Max Drawdown (3Y) Largest decline over 3 years	-33.75%	-18.72%	-15.03%
Max Drawdown (5Y) Largest decline over 5 years	-45.38%	-24.48%	-20.90%
Max Drawdown (10Y) Largest decline over 10 years	-45.38%	-33.87%	-11.51%
Current Drawdown Current decline from peak	-21.30%	-3.14%	-18.16%
Average Drawdown Average peak-to-trough decline	-9.86%	-7.14%	-2.72%
Ulcer Index Depth and duration of drawdowns from previous peaks	16.31%	1.99%	+14.32%

Volatility

XSW vs. SPYM - Volatility Comparison

SPDR S&P Software & Services ETF (XSW) has a higher volatility of 11.42% compared to State Street SPDR Portfolio S&P 500 ETF (SPYM) at 4.83%. This indicates that XSW's price experiences larger fluctuations and is considered to be riskier than SPYM based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	XSW	SPYM	Difference
Volatility (1M) Calculated over the trailing 1-month period	11.42%	4.83%	+6.59%
Volatility (6M) Calculated over the trailing 6-month period	23.81%	9.83%	+13.98%
Volatility (1Y) Calculated over the trailing 1-year period	28.83%	12.46%	+16.37%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	28.89%	16.90%	+11.99%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	26.26%	18.03%	+8.23%

XSW vs. SPYM - Expense Ratio Comparison

XSW has a 0.35% expense ratio, which is higher than SPYM's 0.02% expense ratio.

Dividends

XSW vs. SPYM - Dividend Comparison

XSW has not paid dividends to shareholders, while SPYM's dividend yield for the trailing twelve months is around 1.30%.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
SPYM State Street SPDR Portfolio S&P 500 ETF	1.30%	1.13%	1.28%	1.44%	1.69%	1.25%	1.54%	1.79%	2.23%	1.75%	1.97%	1.98%
XSW SPDR S&P Software & Services ETF	0.00%	0.06%	0.07%	0.20%	0.09%	0.13%	0.26%	0.12%	0.31%	0.46%	0.87%	0.54%

Frequently Asked Questions

Can I hold both XSW and SPYM in my portfolio?

XSW and SPYM have a correlation of 0.59, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, XSW or SPYM?

XSW has higher volatility (11.42%) compared to SPYM (4.83%). In terms of maximum drawdown, XSW dropped -45.38% vs SPYM's -54.46%.

Which ETF is better, XSW or SPYM?

On 10-year performance, SPYM leads with 15.61% vs 12.80% for XSW. On fees, SPYM is cheaper at 0.02% per year. On volatility, SPYM has been the lower-risk option at 4.83%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, XSW or SPYM?

Over the 10-year period, SPYM has performed better with a 15.61% return vs 12.80%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, XSW or SPYM?

SPYM is cheaper with a 0.02% expense ratio, compared with 0.35% for XSW.

Which ETF pays a higher dividend yield, XSW or SPYM?

SPYM has the higher dividend yield at 1.30%, compared with 0.00% for XSW.

What is the main difference between XSW and SPYM?

XSW is categorized as Technology Equities, while SPYM is S&P 500. XSW tracks S&P Software & Services Select Industry Index, while SPYM tracks S&P 500 Index. Their fees differ too: 0.35% for XSW and 0.02% for SPYM.

Which has better risk-adjusted returns?

SPYM currently has the higher Sharpe Ratio (1.92 vs -0.38), 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.