SPY vs XSHQ
State Street SPDR S&P 500 ETF Trust vs Invesco S&P SmallCap Quality ETF
Which is better, SPY or XSHQ?
Large Cap Blend against Small Cap Blend.
SPY has a lower expense ratio. SPY led over 1Y, 3Y, 5Y and the full window. XSHQ is less concentrated, with 21.9% of the fund in its ten largest positions against 38.2%.
MarketXLS is not an investment adviser. This comparison is generated automatically from market data and is for information only. A Best mark means the better reading on that one measure, not a recommendation to buy.
Side-by-Side Comparison
| Metric | SPY | XSHQ |
|---|---|---|
| Expense Ratio | 0.09%Best | 0.29% |
| AUM | $823.2B | $286M |
| Dividend Yield | 0.99% | 1.18% |
| Holdings | 1,515 | 243 |
| YTD Return | +13.53%Best | +6.40% |
| 1Y Return | +17.47%Best | +5.92% |
| 3Y Return (annualized) | +22.36%Best | +9.62% |
| 5Y Return (annualized) | +13.21%Best | +4.97% |
| Volatility (annualized) | 15.7%Best | 19.2% |
| Max Drawdown | -34.1%Best | -38.3% |
| $10,000 over 5 years | $18,596Best | $12,745 |
| Top 10 Weight | 38.2% | 21.9%Best |
| Fund Family | State Street Investment Management | Invesco (US) |
| Category | Equity | Equity |
| Style | Large Cap Blend | Small Cap Blend |
| Inception | Jan 22, 1993 | Apr 3, 2017 |
Volatility and max drawdown are measured over the window both funds cover: Apr 6, 2017 to Oct 14, 2026 (9.5 years).
SPY vs XSHQ growth
Month-end closes. Both lines start at 0% in the first month shown, so the gap between them is the difference in growth across that window. The full view covers the 9.5 years both funds cover.
SPY vs XSHQ Performance
State Street SPDR S&P 500 ETF Trust (SPY) is an ETF from State Street Investment Management and Invesco S&P SmallCap Quality ETF (XSHQ) is an ETF from Invesco (US). Over the past year SPY returned +17.47% while XSHQ returned +5.92%. Year to date, SPY is up 13.53% versus a gain of 6.40% for XSHQ.
Over three years, SPY compounded at +22.36% per year against +9.62% for XSHQ; over five years the annualized figures are +13.21% and +4.97% respectively. Across the full 10-year window we track, SPY has the edge at +14.16% annualized vs +7.97%.
Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
XSHQ has been the more volatile fund, with annualized monthly volatility of 19.2% compared with 15.7% for SPY. Lower volatility generally means a smoother ride, though it often comes with lower long-run returns.
The deepest peak-to-trough decline in our data was -34.1% for SPY and -38.3% for XSHQ. Drawdown depth is what each fund did in the worst stretch of the window measured above.
The two funds' monthly returns correlate at 0.79. They usually move together, but the gap leaves some room for diversification.
Fees and Cost Over Time
SPY charges 0.09% per year while XSHQ charges 0.29%. On a $10,000 position that is $9 vs $29 annually, a gap of $20 per year that compounds over a long holding period. On income, SPY currently yields 0.99% against 1.18% for XSHQ.
Holdings Overlap
We hold position weights for 504 holdings in SPY and 116 in XSHQ, totalling 99.8% and 100.0% of the two funds. The two books name no position in common, so there is no overlap percentage to show.
0 positions in common, counted across the 504 positions we hold weights for in SPY and 116 in XSHQ, against full books of 1,515 and 243.
What only one of them owns
Our book lists 112 positions for XSHQ that do not appear in our book for SPY (95.8% of the fund), and 496 for SPY that do not appear in XSHQ (99.1%).
Some of those will be the same company recorded under a different code in one of the two books, so the real difference in what you would own is no larger than this and may be smaller. We do not name the individual positions here for that reason.
You are not choosing between two funds in isolation.
Whichever of SPY and XSHQ you pick has to sit alongside everything else you own. Add the rest and see what the combination actually holds.
Free for up to 10 holdings. No account needed.
Frequently Asked Questions
Which is cheaper, SPY or XSHQ?
SPY has an expense ratio of 0.09% while XSHQ charges 0.29%. SPY is the cheaper option, by $20 a year on a $10,000 investment.
Which performed better, SPY or XSHQ?
Over the past year SPY returned +17.47% vs +5.92% for XSHQ, so SPY leads on 1-year performance. Over the longest common window we track (10 years), SPY annualized +14.16% vs +7.97% for XSHQ. Past performance does not guarantee future results. This is information, not a recommendation.
Which is riskier, SPY or XSHQ?
XSHQ has been the more volatile fund at 19.2% annualized versus 15.7% for SPY. Worst drawdown: SPY -34.1% vs XSHQ -38.3%.
Should I hold both SPY and XSHQ?
SPY and XSHQ have a monthly-return correlation of 0.79, so their returns are far enough apart for the mix to behave differently from either one alone. This is information, not a recommendation.
Which pays a higher dividend, SPY or XSHQ?
SPY yields 0.99% while XSHQ yields 1.18%, so XSHQ currently pays the higher dividend yield.
Is XSHQ better than SPY?
SPY has a lower expense ratio. SPY led over 1Y, 3Y, 5Y and the full window. XSHQ is less concentrated, with 21.9% of the fund in its ten largest positions against 38.2%. Which one suits a particular account depends on what it is for. This is information, not a recommendation.