AVEM vs. XLK

Last updated Jun 13, 2026

AVEM (Avantis Emerging Markets Equity ETF) and XLK (State Street Technology Select Sector SPDR ETF) are both exchange-traded funds - AVEM is a Emerging Markets Equities fund actively managed by Avantis, while XLK is a Technology Equities fund tracking the S&P Technology Select Sector Daily Capped 35/20 Index. AVEM is actively managed, while XLK is passively managed. Over the past 5 years, AVEM returned 9.66%/yr vs 22.02%/yr for XLK. A 0.65 correlation means they provide meaningful diversification when combined. AVEM charges 0.33%/yr vs 0.08%/yr for XLK.

Performance

AVEM vs. XLK - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in Avantis Emerging Markets Equity ETF (AVEM) 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, AVEM achieves a 25.08% return, which is significantly lower than XLK's 28.52% return.

AVEM

• 1D: 0.42%
• 1M: 1.30%
• YTD: 25.08%
• 6M: 27.86%
• 1Y: 47.18%
• 3Y*: 24.04%
• 5Y*: 9.66%
• 10Y*: —

XLK

• 1D: 0.87%
• 1M: 2.95%
• YTD: 28.52%
• 6M: 28.96%
• 1Y: 55.42%
• 3Y*: 30.28%
• 5Y*: 22.02%
• 10Y*: 25.19%

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

AVEM vs. XLK - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019
AVEM Avantis Emerging Markets Equity ETF	25.08%	34.48%	7.49%	15.30%	-18.15%	5.16%	14.39%	10.40%
XLK State Street Technology Select Sector SPDR ETF	28.52%	24.61%	21.63%	56.02%	-27.73%	34.74%	43.62%	13.50%

Correlation

The correlation between AVEM and XLK is 0.76, which is moderate. They share some common price drivers but move independently often enough to provide real diversification benefit when combined.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	0.76
Correlation (3Y) Calculated over the trailing 3-year period	0.64
Correlation (5Y) Calculated over the trailing 5-year period	0.64
Correlation (All Time) Calculated using the full available price history since Sep 19, 2019	0.65

The correlation between AVEM and XLK shifts across timeframes, from 0.64 (5 years) to 0.76 (1 year), reflecting how their relationship changes across market environments.

AVEM vs. XLK - Sectors Allocation Comparison

Sectors	AVEM	XLK
Technology	32.3%	99.7%
Financial Services	20.7%	-
Consumer Cyclical	9.2%	-
Industrials	9.2%	0.1%
Basic Materials	8.1%	-
Communication Services	5.4%	-
Energy	5.1%	0.2%
Consumer Defensive	3.1%	-
Healthcare	2.8%	-
Utilities	2.6%	-
Real Estate	1.6%	-

Return for Risk

AVEM vs. XLK — Risk / Return Rank

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

AVEM

AVEM Risk / Return Rank: 77
AVEM Sharpe Ratio Rank: 78
AVEM Sortino Ratio Rank: 72
AVEM Omega Ratio Rank: 79
AVEM Calmar Ratio Rank: 77
AVEM Martin Ratio Rank: 79

XLK

XLK Risk / Return Rank: 76
XLK Sharpe Ratio Rank: 85
XLK Sortino Ratio Rank: 76
XLK Omega Ratio Rank: 78
XLK Calmar Ratio Rank: 75
XLK Martin Ratio Rank: 68

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.

AVEM vs. XLK - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Avantis Emerging Markets Equity ETF (AVEM) 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.

	AVEM	XLK	Difference
Sharpe ratio: Return per unit of total volatility	2.15	2.37	-0.23
Sortino ratio: Return per unit of downside risk	2.78	2.92	-0.13
Omega ratio: Gain probability vs. loss probability	1.40	1.39	+0.01
Calmar ratio: Return relative to maximum drawdown	3.46	3.36	+0.10
Martin ratio: Return relative to average drawdown	13.15	10.85	+2.30

AVEM vs. XLK - Sharpe Ratio Comparison

The current AVEM Sharpe Ratio is 2.15, which is comparable to the XLK Sharpe Ratio of 2.37. The chart below compares the historical Sharpe Ratios of AVEM 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

AVEM vs. XLK - Drawdown Comparison

The maximum AVEM drawdown since its inception was -36.05%, smaller than the maximum XLK drawdown of -82.05%. Use the drawdown chart below to compare losses from any high point for AVEM and XLK.

Drawdown Indicators

	AVEM	XLK	Difference
Max Drawdown Largest peak-to-trough decline	-36.05%	-82.05%	+46.00%
Max Drawdown (1Y) Largest decline over 1 year	-13.13%	-15.92%	+2.79%
Max Drawdown (3Y) Largest decline over 3 years	-18.02%	-25.66%	+7.64%
Max Drawdown (5Y) Largest decline over 5 years	-33.88%	-33.56%	-0.32%
Max Drawdown (10Y) Largest decline over 10 years	—	-33.56%	—
Current Drawdown Current decline from peak	-3.33%	-6.77%	+3.44%
Average Drawdown Average peak-to-trough decline	-10.07%	-34.93%	+24.86%
Ulcer Index Depth and duration of drawdowns from previous peaks	3.45%	4.92%	-1.47%

Volatility

AVEM vs. XLK - Volatility Comparison

Avantis Emerging Markets Equity ETF (AVEM) and State Street Technology Select Sector SPDR ETF (XLK) have volatilities of 10.91% and 10.86%, respectively, indicating that both stocks experience similar levels of price fluctuations. This suggests that the risk associated with both stocks, as measured by volatility, is nearly the same. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	AVEM	XLK	Difference
Volatility (1M) Calculated over the trailing 1-month period	10.91%	10.86%	+0.05%
Volatility (6M) Calculated over the trailing 6-month period	18.79%	18.92%	-0.13%
Volatility (1Y) Calculated over the trailing 1-year period	21.17%	22.55%	-1.38%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	18.71%	25.18%	-6.47%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	20.76%	24.64%	-3.88%

AVEM vs. XLK - Expense Ratio Comparison

AVEM has a 0.33% expense ratio, which is higher than XLK's 0.08% expense ratio.

Dividends

AVEM vs. XLK - Dividend Comparison

AVEM's dividend yield for the trailing twelve months is around 2.59%, more than XLK's 0.41% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
AVEM Avantis Emerging Markets Equity ETF	2.59%	2.45%	3.17%	3.06%	2.77%	2.61%	1.60%	0.35%	0.00%	0.00%	0.00%	0.00%
XLK State Street Technology Select Sector SPDR ETF	0.41%	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 AVEM and XLK in my portfolio?

AVEM and XLK have a correlation of 0.76, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, AVEM or XLK?

AVEM has higher volatility (10.91%) compared to XLK (10.86%). In terms of maximum drawdown, AVEM dropped -36.05% vs XLK's -82.05%.

Which ETF is better, AVEM or XLK?

On 5-year performance, XLK leads with 22.02% vs 9.66% for AVEM. On fees, XLK is cheaper at 0.08% per year. Their volatility is very similar. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, AVEM or XLK?

Over the 5-year period, XLK has performed better with a 22.02% return vs 9.66%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, AVEM or XLK?

XLK is cheaper with a 0.08% expense ratio, compared with 0.33% for AVEM.

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

AVEM has the higher dividend yield at 2.59%, compared with 0.41% for XLK.

What is the main difference between AVEM and XLK?

AVEM is categorized as Emerging Markets Equities, while XLK is Technology Equities. They also come from different issuers: Avantis and State Street. Their fees differ too: 0.33% for AVEM and 0.08% for XLK.

Which has better risk-adjusted returns?

XLK currently has the higher Sharpe Ratio (2.37 vs 2.15), 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.