AIBD vs. XLK

Last updated Jun 4, 2026

AIBD (Direxion Daily AI and Big Data Bear 2X Shares) and XLK (State Street Technology Select Sector SPDR ETF) are both exchange-traded funds - AIBD is a Inverse Equities fund tracking the Solactive US AI & Big Data Index, while XLK is a Technology Equities fund tracking the S&P Technology Select Sector Daily Capped 35/20 Index. Both are passively managed. Over the past year, AIBD returned -59.55% vs 66.93% for XLK. At a correlation of -0.86, they often move in opposite directions. AIBD charges 1.05%/yr vs 0.08%/yr for XLK.

Performance

AIBD vs. XLK - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in Direxion Daily AI and Big Data Bear 2X Shares (AIBD) and State Street Technology Select Sector SPDR ETF (XLK). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, AIBD achieves a -38.68% return, which is significantly lower than XLK's 36.47% return.

AIBD

• 1D: 4.30%
• 1M: -24.36%
• YTD: -38.68%
• 6M: -33.54%
• 1Y: -59.55%
• 3Y*: —
• 5Y*: —
• 10Y*: —

XLK

• 1D: -1.00%
• 1M: 21.09%
• YTD: 36.47%
• 6M: 35.71%
• 1Y: 66.93%
• 3Y*: 33.90%
• 5Y*: 23.83%
• 10Y*: 25.84%

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

AIBD vs. XLK - Yearly Performance Comparison

	2026 (YTD)	2025	2024
AIBD Direxion Daily AI and Big Data Bear 2X Shares	-38.68%	-49.15%	-33.02%
XLK State Street Technology Select Sector SPDR ETF	36.47%	24.61%	9.72%

Correlation

The correlation between AIBD and XLK is -0.79, meaning they tend to move in opposite directions. This is especially valuable for risk management - when one declines, the other has historically tended to hold steady or rise.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	-0.79
Correlation (All Time) Calculated using the full available price history since May 16, 2024	-0.86

The correlation between AIBD and XLK has been stable across timeframes, ranging from -0.86 to -0.79 - a consistent structural relationship.

Return for Risk

AIBD vs. XLK — Risk / Return Rank

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

AIBD

AIBD Risk / Return Rank: 1
AIBD Sharpe Ratio Rank: 1
AIBD Sortino Ratio Rank: 1
AIBD Omega Ratio Rank: 1
AIBD Calmar Ratio Rank: 0
AIBD Martin Ratio Rank: 0

XLK

XLK Risk / Return Rank: 83
XLK Sharpe Ratio Rank: 91
XLK Sortino Ratio Rank: 85
XLK Omega Ratio Rank: 83
XLK Calmar Ratio Rank: 80
XLK Martin Ratio Rank: 73

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.

AIBD vs. XLK - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Direxion Daily AI and Big Data Bear 2X Shares (AIBD) and State Street Technology Select Sector SPDR ETF (XLK). 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.

	AIBD	XLK	Difference
Sharpe ratio Return per unit of total volatility	-1.17	3.24	-4.40
Sortino ratio Return per unit of downside risk	-2.03	3.92	-5.95
Omega ratio Gain probability vs. loss probability	0.78	1.52	-0.73
Calmar ratio Return relative to maximum drawdown	-0.97	4.22	-5.20
Martin ratio Return relative to average drawdown	-1.78	14.16	-15.94
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month.

AIBD vs. XLK - Sharpe Ratio Comparison

The current AIBD Sharpe Ratio is -1.17, which is lower than the XLK Sharpe Ratio of 3.24. The chart below compares the historical Sharpe Ratios of AIBD and XLK, calculated using daily returns over the previous 12 months. A higher Sharpe Ratio indicates better risk-adjusted performance relative to the risk-free rate.

Sharpe Ratios by Period

	AIBD	XLK	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	-1.17	3.24	-4.40
Sharpe Ratio (5Y) Calculated over the trailing 5-year period	—	0.96	—
Sharpe Ratio (10Y) Calculated over the trailing 10-year period	—	1.06	—
Sharpe Ratio (All Time) Calculated using the full available price history	-0.95	0.42	-1.37

Drawdowns

AIBD vs. XLK - Drawdown Comparison

The maximum AIBD drawdown since its inception was -82.11%, roughly equal to the maximum XLK drawdown of -82.05%. Use the drawdown chart below to compare losses from any high point for AIBD and XLK.

Drawdown Indicators

	AIBD	XLK	Difference
Max Drawdown Largest peak-to-trough decline	-82.11%	-82.05%	-0.06%
Max Drawdown (1Y) Largest decline over 1 year	-61.47%	-15.92%	-45.55%
Max Drawdown (3Y) Largest decline over 3 years	—	-25.66%	—
Max Drawdown (5Y) Largest decline over 5 years	—	-33.56%	—
Max Drawdown (10Y) Largest decline over 10 years	—	-33.56%	—
Current Drawdown Current decline from peak	-81.34%	-1.00%	-80.34%
Average Drawdown Average peak-to-trough decline	-48.17%	-34.96%	-13.21%
Ulcer Index Depth and duration of drawdowns from previous peaks	33.38%	4.74%	+28.64%

Volatility

AIBD vs. XLK - Volatility Comparison

Direxion Daily AI and Big Data Bear 2X Shares (AIBD) has a higher volatility of 14.63% compared to State Street Technology Select Sector SPDR ETF (XLK) at 6.98%. This indicates that AIBD's price experiences larger fluctuations and is considered to be riskier than XLK based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	AIBD	XLK	Difference
Volatility (1M) Calculated over the trailing 1-month period	14.63%	6.98%	+7.65%
Volatility (6M) Calculated over the trailing 6-month period	37.40%	16.68%	+20.72%
Volatility (1Y) Calculated over the trailing 1-year period	51.16%	20.82%	+30.34%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	56.52%	24.90%	+31.62%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	56.52%	24.49%	+32.03%

AIBD vs. XLK - Expense Ratio Comparison

AIBD has a 1.05% expense ratio, which is higher than XLK's 0.08% expense ratio.

Dividends

AIBD vs. XLK - Dividend Comparison

AIBD's dividend yield for the trailing twelve months is around 5.68%, more than XLK's 0.39% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
AIBD Direxion Daily AI and Big Data Bear 2X Shares	5.68%	4.37%	3.58%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%
XLK State Street Technology Select Sector SPDR ETF	0.39%	0.54%	0.66%	0.76%	1.04%	0.65%	0.92%	1.16%	1.60%	1.37%	1.74%	1.79%

Frequently Asked Questions

Can I hold both AIBD and XLK in my portfolio?

AIBD and XLK have a correlation of -0.79, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, AIBD or XLK?

AIBD has higher volatility (14.63%) compared to XLK (6.98%). In terms of maximum drawdown, AIBD dropped -82.11% vs XLK's -82.05%.

Which ETF is better, AIBD or XLK?

On 1-year performance, XLK leads with 66.93% vs -59.55% for AIBD. On fees, XLK is cheaper at 0.08% per year. On volatility, XLK has been the lower-risk option at 6.98%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, AIBD or XLK?

Over the 1-year period, XLK has performed better with a 66.93% return vs -59.55%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, AIBD or XLK?

XLK is cheaper with a 0.08% expense ratio, compared with 1.05% for AIBD.

Which ETF pays a higher dividend yield, AIBD or XLK?

AIBD has the higher dividend yield at 5.68%, compared with 0.39% for XLK.

What is the main difference between AIBD and XLK?

AIBD is categorized as Inverse Equities, while XLK is Technology Equities. AIBD tracks Solactive US AI & Big Data Index, while XLK tracks S&P Technology Select Sector Daily Capped 35/20 Index. They also come from different issuers: Direxion and State Street. Their fees differ too: 1.05% for AIBD and 0.08% for XLK.

Which has better risk-adjusted returns?

XLK currently has the higher Sharpe Ratio (3.24 vs -1.17), 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.