ARTY vs. XLK

Last updated Jun 25, 2026

ARTY (iShares Future AI & Tech ETF) and XLK (State Street Technology Select Sector SPDR ETF) are both Technology Equities funds - ARTY tracks the Morningstar Global Artificial Intelligence Select Index (Net) while XLK tracks the S&P Technology Select Sector Daily Capped 35/20 Index. Both are passively managed. Over the past 5 years, ARTY returned 11.45%/yr vs 21.22%/yr for XLK. Their correlation of 0.85 suggests significant overlap in exposure. ARTY charges 0.47%/yr vs 0.08%/yr for XLK.

Performance

ARTY vs. XLK - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in iShares Future AI & Tech ETF (ARTY) 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, ARTY achieves a 53.58% return, which is significantly higher than XLK's 27.45% return.

ARTY

• 1D: -0.63%
• 1M: 7.58%
• YTD: 53.58%
• 6M: 52.53%
• 1Y: 86.57%
• 3Y*: 32.76%
• 5Y*: 11.45%
• 10Y*: —

XLK

• 1D: -0.62%
• 1M: 1.60%
• YTD: 27.45%
• 6M: 25.42%
• 1Y: 48.85%
• 3Y*: 30.34%
• 5Y*: 21.22%
• 10Y*: 25.40%

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

ARTY vs. XLK - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018
ARTY iShares Future AI & Tech ETF	53.58%	29.97%	8.02%	36.37%	-37.89%	6.32%	48.85%	34.47%	-13.76%
XLK State Street Technology Select Sector SPDR ETF	27.45%	24.61%	21.63%	56.02%	-27.73%	34.74%	43.62%	49.86%	-9.03%

Correlation

The correlation between ARTY and XLK is 0.92, indicating a strong positive relationship between their price movements. Combining them offers limited diversification - they tend to fall together during downturns.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	0.92
Correlation (3Y) Calculated over the trailing 3-year period	0.86
Correlation (5Y) Calculated over the trailing 5-year period	0.86
Correlation (All Time) Calculated using the full available price history since Jun 28, 2018	0.85

The correlation between ARTY and XLK has been stable across timeframes, ranging from 0.85 to 0.92 - a consistent structural relationship.

ARTY vs. XLK - Sectors Allocation Comparison

Sectors	ARTY	XLK
Technology	89.8%	99.7%
Industrials	4.3%	0.1%
Communication Services	3.1%	-
Utilities	1.3%	-
Real Estate	1.0%	-
Healthcare	0.5%	-
Basic Materials	-	-
Consumer Cyclical	-	-
Consumer Defensive	-	-
Energy	-	0.2%
Financial Services	-	-

Return for Risk

ARTY vs. XLK — Risk / Return Rank

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

ARTY

ARTY Risk / Return Rank: 81
ARTY Sharpe Ratio Rank: 87
ARTY Sortino Ratio Rank: 73
ARTY Omega Ratio Rank: 76
ARTY Calmar Ratio Rank: 88
ARTY Martin Ratio Rank: 83

XLK

XLK Risk / Return Rank: 66
XLK Sharpe Ratio Rank: 73
XLK Sortino Ratio Rank: 63
XLK Omega Ratio Rank: 65
XLK Calmar Ratio Rank: 68
XLK Martin Ratio Rank: 60

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.

ARTY vs. XLK - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for iShares Future AI & Tech ETF (ARTY) 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.

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.

	ARTY	XLK	Difference
Sharpe ratio: Return per unit of total volatility	2.55	2.10	+0.45
Sortino ratio: Return per unit of downside risk	2.92	2.62	+0.30
Omega ratio: Gain probability vs. loss probability	1.40	1.35	+0.05
Calmar ratio: Return relative to maximum drawdown	4.63	3.08	+1.54
Martin ratio: Return relative to average drawdown	15.07	9.79	+5.28

ARTY vs. XLK - Sharpe Ratio Comparison

The current ARTY Sharpe Ratio is 2.55, which is comparable to the XLK Sharpe Ratio of 2.10. The chart below compares the historical Sharpe Ratios of ARTY 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.

Drawdowns

ARTY vs. XLK - Drawdown Comparison

The maximum ARTY drawdown since its inception was -54.50%, smaller than the maximum XLK drawdown of -82.05%. Use the drawdown chart below to compare losses from any high point for ARTY and XLK.

Drawdown Indicators

	ARTY	XLK	Difference
Max Drawdown Largest peak-to-trough decline	-54.50%	-82.05%	+27.55%
Max Drawdown (1Y) Largest decline over 1 year	-18.81%	-15.92%	-2.89%
Max Drawdown (3Y) Largest decline over 3 years	-32.44%	-25.66%	-6.78%
Max Drawdown (5Y) Largest decline over 5 years	-50.53%	-33.56%	-16.97%
Max Drawdown (10Y) Largest decline over 10 years	—	-33.56%	—
Current Drawdown Current decline from peak	-8.37%	-7.54%	-0.83%
Average Drawdown Average peak-to-trough decline	-19.75%	-34.90%	+15.15%
Ulcer Index Depth and duration of drawdowns from previous peaks	5.76%	5.00%	+0.76%

Volatility

ARTY vs. XLK - Volatility Comparison

iShares Future AI & Tech ETF (ARTY) has a higher volatility of 19.33% compared to State Street Technology Select Sector SPDR ETF (XLK) at 12.50%. This indicates that ARTY'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

	ARTY	XLK	Difference
Volatility (1M) Calculated over the trailing 1-month period	19.33%	12.50%	+6.83%
Volatility (6M) Calculated over the trailing 6-month period	29.98%	19.62%	+10.36%
Volatility (1Y) Calculated over the trailing 1-year period	34.23%	23.47%	+10.76%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	29.56%	25.37%	+4.19%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	28.29%	24.71%	+3.58%

ARTY vs. XLK - Expense Ratio Comparison

ARTY has a 0.47% expense ratio, which is higher than XLK's 0.08% expense ratio.

Dividends

ARTY vs. XLK - Dividend Comparison

ARTY's dividend yield for the trailing twelve months is around 0.06%, less than XLK's 0.43% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
ARTY iShares Future AI & Tech ETF	0.06%	0.00%	0.50%	0.88%	0.75%	2.41%	0.53%	0.69%	0.34%	0.00%	0.00%	0.00%
XLK State Street Technology Select Sector SPDR ETF	0.43%	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 ARTY and XLK in my portfolio?

With a correlation of 0.92, ARTY and XLK move almost identically. Holding both adds very little diversification - you're essentially doubling your position in the same market segment. Choosing one is usually more capital-efficient.

Which is riskier, ARTY or XLK?

ARTY has higher volatility (19.33%) compared to XLK (12.50%). In terms of maximum drawdown, ARTY dropped -54.50% vs XLK's -82.05%.

Which ETF is better, ARTY or XLK?

On 5-year performance, XLK leads with 21.22% vs 11.45% for ARTY. On fees, XLK is cheaper at 0.08% per year. On volatility, XLK has been the lower-risk option at 12.50%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, ARTY or XLK?

Over the 5-year period, XLK has performed better with a 21.22% return vs 11.45%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, ARTY or XLK?

XLK is cheaper with a 0.08% expense ratio, compared with 0.47% for ARTY.

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

XLK has the higher dividend yield at 0.43%, compared with 0.06% for ARTY.

What is the main difference between ARTY and XLK?

ARTY tracks Morningstar Global Artificial Intelligence Select Index (Net), while XLK tracks S&P Technology Select Sector Daily Capped 35/20 Index. They also come from different issuers: iShares and State Street. Their fees differ too: 0.47% for ARTY and 0.08% for XLK.

Which has better risk-adjusted returns?

ARTY currently has the higher Sharpe Ratio (2.55 vs 2.10), 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.