SPY vs XSHQ
SPY vs XSHQ
State Street SPDR S&P 500 ETF Trust vs Invesco S&P SmallCap Quality ETF
Quick Verdict
SPY has a lower expense ratio. SPY delivered stronger 1-year returns. SPY offers more diversification with 503 holdings.
Side-by-Side Comparison
| Metric | SPY | XSHQ | Winner |
|---|---|---|---|
| Expense Ratio | 0.09% | 0.29% | |
| AUM | $789.1B | $248M | |
| Dividend Yield | 1.01% | 1.17% | |
| Holdings | 505 | 118 | |
| YTD Return | +13.79% | +16.14% | |
| 1Y Return | +23.66% | +19.10% | |
| 3Y Return (annualized) | +21.40% | +10.35% | |
| 5Y Return (annualized) | +13.37% | +7.38% | |
| Volatility (annualized) | 15.3% | 19.2% | |
| Max Drawdown | -56.5% | -38.3% | |
| Fund Family | State Street Investment Management | Invesco (US) | |
| Category | Equity | Equity | |
| Inception | Jan 22, 1993 | Apr 3, 2017 |
SPY vs XSHQ Performance
State Street SPDR S&P 500 ETF Trust (SPY) is a ETF from State Street Investment Management and Invesco S&P SmallCap Quality ETF (XSHQ) is a ETF from Invesco (US). Over the past year SPY returned +23.66% while XSHQ returned +19.10%. Year to date, SPY is up 13.79% versus a gain of 16.14% for XSHQ.
Over three years, SPY compounded at +21.40% per year against +10.35% for XSHQ; over five years the annualized figures are +13.37% and +7.38% respectively. Across the full 9-year window we track, XSHQ has the edge at +9.15% annualized vs +8.85%. 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 15.3% 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 -56.5% for SPY and -38.3% for XSHQ. Drawdown depth is worth weighing if you expect to sell during market stress rather than ride it out.
The two funds' monthly returns correlate at 0.80. 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 1.01% against 1.17% for XSHQ.
Holdings Overlap
SPY and XSHQ share 0 holdings out of 623 unique holdings combined, representing a 0.0% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
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. On a $10,000 investment, that is $20 per year of difference.
Which performed better, SPY or XSHQ?
Over the past year SPY returned +23.66% vs +19.10% for XSHQ, so SPY leads on 1-year performance. Over the longest common window we track (9 years), SPY annualized +8.85% vs +9.15% for XSHQ. Past performance does not guarantee future results.
Which is riskier, SPY or XSHQ?
XSHQ has been the more volatile fund at 19.2% annualized versus 15.3% for SPY. Worst drawdown: SPY -56.5% vs XSHQ -38.3%.
Should I hold both SPY and XSHQ?
SPY and XSHQ have a monthly-return correlation of 0.80, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between SPY and XSHQ?
SPY and XSHQ share 0 common holdings with a 0.0% weight overlap. Combined, they hold 623 unique securities.
Which pays a higher dividend, SPY or XSHQ?
SPY yields 1.01% while XSHQ yields 1.17%, so XSHQ currently pays the higher dividend yield.
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