XYLD vs SPY Stock Comparison: AI Score, Valuation, Performance and Upside
XYLD and SPY represent the fundamental trade-off between income and total return in S&P 500 investing. XYLD generates 8-10% monthly income by capping upside through covered calls. SPY generates 1.5-2% dividend income plus uncapped capital appreciation averaging 10% annually. SPY's total return has dramatically outpaced XYLD over most multi-year periods. The choice is between current cash flow (XYLD) and total long-term wealth creation (SPY).
XYLD vs SPY — Global X S&P 500 Covered Call ETF (selling monthly S&P 500 call options for 8-10% income yield with capped upside participation) versus SPDR S&P 500 ETF (uncapped full S&P 500 total return participation averaging 10% annually with 1.5-2% dividend yield at 0.09% expense ratio).
XYLD holds the edge across 3 of 5 key metrics in this comparison. XYLD has delivered stronger 1-year price return (+18.33% vs +17.28% for SPY).
- need current income exceeding SPY's 1.5-2% dividend yield — retirees or income-focused investors managing near-term cash flow needs may value XYLD's 8-10% distribution
- believe the S&P 500 will be flat to moderately declining — XYLD's premium income provides outperformance vs SPY in neutral or slightly down markets
- have specifically evaluated that their income needs exceed available portfolio appreciation, making covered call income a pragmatic tool for their specific situation
- understand total return implications and accept lower long-term compounding in exchange for higher near-term cash flow from their S&P 500 allocation
- prioritize total return compounding — SPY's uncapped participation in S&P 500 appreciation averages 10% annually, dramatically outpacing XYLD's capped total return over long periods
- can generate income from other sources (bonds, dividends from separate holdings) without sacrificing SPY's capital appreciation potential
- want the simplest, most liquid, most recognized US equity market exposure for any investment account type
- are comfortable with 1.5-2% dividend yield and using portfolio withdrawal strategies rather than high-yield income ETFs for cash flow needs
| Metric | XYLD | SPY |
|---|---|---|
| ETF scorei | 24.8 | 27.1 |
| Latest closei | $42.00 | $771.79 |
| 1M returni | +2.12% | +2.15% |
| 3M returni | +4.30% | +3.06% |
| 6M returni | +10.65% | +10.55% |
| 1Y returni | +18.33% | +17.28% |
The ETF score weights long-term returns and risk-adjusted performance most heavily, but still rewards low expense ratios, larger fund size, and broader diversification — so it can favor low-cost, broad, mega-cap funds over smaller thematic or actively-managed funds even when the latter have delivered stronger returns.
How much would $10,000 be worth today if invested at the start of each period, with all dividends reinvested?
| Period | XYLD | SPY |
|---|---|---|
| 1Y ago | $13.24K (+32.4%) started 2025-10-15 | $11.85K (+18.5%) started 2025-10-15 |
| 5Y ago | $30.04K (+200.4%) started 2021-10-15 | $19.83K (+98.3%) started 2021-10-15 |
| 10Y ago | $95.48K (+854.8%) started 2016-10-17 | $50.5K (+405.0%) started 2016-10-17 |
Hypothetical — past performance does not guarantee future results.
| Metric | XYLD | SPY |
|---|---|---|
| Expense ratioi | 0.60% | 0.09% |
| Total assets (AUM)i | $3.38B | $809.22B |
| Dividend yieldi | 6.38% | 0.99% |
| Trailing P/Ei | 24.49 | 24.50 |
| Betai | 0.50 | 1.02 |
| 52-week change | 18.33% | 17.28% |
| Metric | XYLD | SPY |
|---|---|---|
| 1Y returni | +18.33% | +17.28% |
| 6M returni | +10.65% | +10.55% |
| 3M returni | +4.30% | +3.06% |
| 1M returni | +2.12% | +2.15% |
| 1Y Sharpe ratio | 1.85 | 0.97 |
| Betai | 0.50 | 1.02 |
| Dividend yieldi | 6.38% | 0.99% |
| 5Y CAGR | +7.67% | +13.10% |
Over the past year, XYLD and SPY have moved strongly in the same direction (correlation of 0.88), based on daily returns.
Lower drawdown and smaller single-period drops generally indicate a smoother ride, though they do not guarantee lower future risk.
| Period | Metric | XYLD | SPY |
|---|---|---|---|
| 1Y | Growthi | +18.33% | +17.28% |
| CAGRi | +18.34% | +17.29% | |
| Volatilityi | 6.85% | 12.67% | |
| Sharpe ratioi | 1.85 | 0.97 | |
| Sortino ratioi | 2.80 | 1.43 | |
| Max drawdowni | 5.29% | 8.88% | |
| Current drawdowni | 0.00% | 0.94% | |
| Avg drawdowni | 0.46% | 1.44% | |
| Ulcer Indexi | 1.01% | 2.13% | |
| Max daily dropi | 1.39% | 2.58% | |
| Max wkly dropi | 2.27% | 3.82% | |
| 5Y | Growthi | +44.68% | +85.07% |
| CAGRi | +7.67% | +13.10% | |
| Volatilityi | 11.18% | 17.13% | |
| Sharpe ratioi | 0.32 | 0.55 | |
| Sortino ratioi | 0.44 | 0.78 | |
| Max drawdowni | 18.66% | 24.50% | |
| Current drawdowni | 0.00% | 0.94% | |
| Avg drawdowni | 4.05% | 5.56% | |
| Ulcer Indexi | 6.01% | 8.45% | |
| Max daily dropi | 5.85% | 5.85% | |
| Max wkly dropi | 9.85% | 11.50% | |
| 10Y | Growthi | +130.71% | +325.53% |
| CAGRi | +8.73% | +15.59% | |
| Volatilityi | 14.11% | 17.95% | |
| Sharpe ratioi | 0.35 | 0.65 | |
| Sortino ratioi | 0.46 | 0.91 | |
| Max drawdowni | 33.46% | 33.72% | |
| Current drawdowni | 0.00% | 0.94% | |
| Avg drawdowni | 4.15% | 4.30% | |
| Ulcer Indexi | 6.73% | 7.16% | |
| Max daily dropi | 11.75% | 10.94% | |
| Max wkly dropi | 17.39% | 17.97% |
| Category | XYLD | SPY |
|---|---|---|
| Fund name | Global X S&P 500 Covered Call ETF | State Street SPDR S&P 500 ETF Trust |
| Type | ETF | ETF |
| Expense ratioi | 0.60% | 0.09% |
| Total assets (AUM)i | $3.38B | $809.22B |
| Dividend yieldi | 6.38% | 0.99% |
- 8-10% monthly income distribution from S&P 500: XYLD provides high income from an established large-cap index while maintaining blue-chip stock quality
- S&P 500 quality with income: XYLD's underlying S&P 500 stocks provide better dividend income than QYLD's Nasdaq-100 (which has minimal dividends), making XYLD's premium income more supplemental to underlying dividends
- Some downside protection from premiums: option premiums provide a cushion in down markets — XYLD typically falls less than SPY in moderate market declines
- Full S&P 500 total return participation: SPY captures 100% of S&P 500 capital appreciation plus dividends — averaging approximately 10% annually over 30 years including dividends
- Uncapped upside in any market condition: SPY participates fully in every bull market move — no covered call strike limiting gains
- 0.09% expense ratio at maximum liquidity: SPY is the most liquid ETF — ideal for tactical and strategic allocations
- Capped upside misses S&P 500 bull markets: XYLD's call selling caps appreciation at the strike — in a strong S&P 500 bull market, XYLD significantly underperforms SPY on total return
- Total return significantly below SPY over time: SPY's uncapped appreciation has historically dramatically outpaced XYLD's premium income + capped upside over 5-10+ year periods
- Expense ratio disadvantage: XYLD charges 0.60% vs SPY's 0.09% — a meaningful fee difference compounding over time
- Minimal current income (~1.5-2% yield): SPY's dividend yield alone is too low for income-dependent investors — XYLD's 8-10% yield addresses the income gap
- Full downside exposure in bear markets: SPY declines proportionally with the S&P 500 — no premium income buffers initial losses as XYLD's option premiums do
- Concentration in technology mega-caps: top 5-6 companies represent 25%+ of SPY — technology sector concentration creates systemic risk in technology bear markets
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