BWZ vs. XLK
BWZ (SPDR Bloomberg Barclays Short Term International Treasury Bond ETF) and XLK (State Street Technology Select Sector SPDR ETF) are both exchange-traded funds - BWZ is a International Government Bonds fund tracking the Bloomberg Global Treasury (1-3 Y) Customized, 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 10 years, BWZ returned -0.60%/yr vs 24.50%/yr for XLK. At a 0.17 correlation, their price movements are largely independent. BWZ charges 0.35%/yr vs 0.08%/yr for XLK.
Performance
BWZ vs. XLK - Performance Comparison
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Returns By Period
In the year-to-date period, BWZ achieves a -1.87% return, which is significantly lower than XLK's 26.22% return. Over the past 10 years, BWZ has underperformed XLK with an annualized return of -0.60%, while XLK has yielded a comparatively higher 24.50% annualized return.
BWZ
- 1D
- -0.75%
- 1M
- -1.37%
- 6M
- -1.51%
- YTD
- -1.87%
- 1Y
- -2.04%
- 3Y*
- 1.09%
- 5Y*
- -1.85%
- 10Y*
- -0.60%
XLK
- 1D
- -2.42%
- 1M
- -1.79%
- 6M
- 23.80%
- YTD
- 26.22%
- 1Y
- 42.45%
- 3Y*
- 28.08%
- 5Y*
- 19.72%
- 10Y*
- 24.50%
BWZ vs. XLK - Yearly Performance Comparison
| 2026 (YTD) | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | |
|---|---|---|---|---|---|---|---|---|---|---|
BWZ SPDR Bloomberg Barclays Short Term International Treasury Bond ETF | -1.87% | 10.47% | -5.31% | 2.97% | -10.56% | -6.85% | 6.47% | 0.99% | -3.36% | 10.18% |
XLK State Street Technology Select Sector SPDR ETF | 26.22% | 24.61% | 21.63% | 56.02% | -27.73% | 34.74% | 43.62% | 49.86% | -1.68% | 34.26% |
Correlation
The correlation between BWZ and XLK is 0.23, which is low. Their price movements are largely independent, making them effective diversification partners.
| Correlation | |
|---|---|
Correlation (1Y) Calculated over the trailing 1-year period | 0.23 |
Correlation (3Y) Calculated over the trailing 3-year period | 0.13 |
Correlation (5Y) Calculated over the trailing 5-year period | 0.20 |
Correlation (10Y) Calculated over the trailing 10-year period | 0.14 |
Correlation (All Time) Calculated using the full available price history since Jan 30, 2009 | 0.17 |
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Return for Risk
BWZ vs. XLK — Risk / Return Rank
BWZ
XLK
BWZ vs. XLK - Risk-Adjusted Trends Comparison
This table presents a comparison of risk-adjusted performance metrics for SPDR Bloomberg Barclays Short Term International Treasury Bond ETF (BWZ) 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.
| BWZ | XLK | Difference | |
|---|---|---|---|
| Sharpe ratioReturn per unit of total volatility | -2.05 | ||
| Sortino ratioReturn per unit of downside risk | -2.63 | ||
| Omega ratioGain probability vs. loss probability | 0.96 | 1.30 | -0.34 |
| Calmar ratioReturn relative to maximum drawdown | -0.40 | 2.68 | -3.08 |
| Martin ratioReturn relative to average drawdown | -0.78 | 8.10 | -8.88 |
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Drawdowns
BWZ vs. XLK - Drawdown Comparison
The maximum BWZ drawdown since its inception was -34.23%, smaller than the maximum XLK drawdown of -82.05%. Use the drawdown chart below to compare losses from any high point for BWZ and XLK.
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Drawdown Indicators
| BWZ | XLK | Difference | |
|---|---|---|---|
Max DrawdownLargest peak-to-trough decline | -34.23% | -82.05% | +47.82% |
Max Drawdown (1Y)Largest decline over 1 year | -5.15% | -15.92% | +10.77% |
Max Drawdown (3Y)Largest decline over 3 years | -8.60% | -25.66% | +17.06% |
Max Drawdown (5Y)Largest decline over 5 years | -22.09% | -33.56% | +11.47% |
Max Drawdown (10Y)Largest decline over 10 years | -24.90% | -33.56% | +8.66% |
Current DrawdownCurrent decline from peak | -23.37% | -8.43% | -14.94% |
Average DrawdownAverage peak-to-trough decline | -16.14% | -34.85% | +18.71% |
Ulcer IndexDepth and duration of drawdowns from previous peaks | 2.61% | 5.25% | -2.64% |
Volatility
BWZ vs. XLK - Volatility Comparison
The current volatility for SPDR Bloomberg Barclays Short Term International Treasury Bond ETF (BWZ) is 1.68%, while State Street Technology Select Sector SPDR ETF (XLK) has a volatility of 11.01%. This indicates that BWZ experiences smaller price fluctuations and is considered to be less risky than XLK based on this measure. The chart below showcases a comparison of their rolling one-month volatility.
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Volatility by Period
| BWZ | XLK | Difference | |
|---|---|---|---|
Volatility (1M)Calculated over the trailing 1-month period | 1.68% | 11.01% | -9.33% |
Volatility (6M)Calculated over the trailing 6-month period | 5.10% | 20.77% | -15.67% |
Volatility (1Y)Calculated over the trailing 1-year period | 6.84% | 24.43% | -17.59% |
Volatility (5Y)Calculated over the trailing 5-year period, annualized | 7.60% | 25.56% | -17.96% |
Volatility (10Y)Calculated over the trailing 10-year period, annualized | 6.94% | 24.79% | -17.85% |
BWZ vs. XLK - Expense Ratio Comparison
BWZ has a 0.35% expense ratio, which is higher than XLK's 0.08% expense ratio.
Dividends
BWZ vs. XLK - Dividend Comparison
BWZ's dividend yield for the trailing twelve months is around 2.12%, more than XLK's 0.44% yield.
| Position | TTM | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
BWZ SPDR Bloomberg Barclays Short Term International Treasury Bond ETF | 2.12% | 2.05% | 2.47% | 1.63% | 0.44% | 0.60% | 0.13% | 0.43% | 1.10% | 0.40% | 0.13% | 0.06% |
XLK State Street Technology Select Sector SPDR ETF | 0.44% | 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
BWZ and XLK have a correlation of 0.23, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.
XLK has higher volatility (11.01%) compared to BWZ (1.68%). In terms of maximum drawdown, BWZ dropped -34.23% vs XLK's -82.05%.
On 10-year performance, XLK leads with 24.50% vs -0.60% for BWZ. On fees, XLK is cheaper at 0.08% per year. On volatility, BWZ has been the lower-risk option at 1.68%. The better choice depends on whether you care most about return, fees, risk, or income.
Over the 10-year period, XLK has performed better with a 24.50% return vs -0.60%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.
XLK is cheaper with a 0.08% expense ratio, compared with 0.35% for BWZ.
BWZ has the higher dividend yield at 2.12%, compared with 0.44% for XLK.
BWZ is categorized as International Government Bonds, while XLK is Technology Equities. BWZ tracks Bloomberg Global Treasury (1-3 Y) Customized, while XLK tracks S&P Technology Select Sector Daily Capped 35/20 Index. Their fees differ too: 0.35% for BWZ and 0.08% for XLK.
XLK currently has the higher Sharpe Ratio (1.75 vs -0.30), 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.
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