CDX vs. XLK
CDX (Simplify High Yield PLUS Credit Hedge ETF) and XLK (State Street Technology Select Sector SPDR ETF) are both exchange-traded funds - CDX is a High Yield Bonds fund actively managed by Simplify, while XLK is a Technology Equities fund tracking the S&P Technology Select Sector Daily Capped 35/20 Index. CDX is actively managed, while XLK is passively managed. Over the past 3 years, CDX returned 7.84%/yr vs 30.28%/yr for XLK. At a 0.38 correlation, their price movements are largely independent. CDX charges 0.26%/yr vs 0.08%/yr for XLK.
Performance
CDX vs. XLK - Performance Comparison
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Returns By Period
In the year-to-date period, CDX achieves a -1.56% return, which is significantly lower than XLK's 28.52% return.
CDX
- 1D
- -0.09%
- 1M
- 0.33%
- YTD
- -1.56%
- 6M
- -1.47%
- 1Y
- -0.54%
- 3Y*
- 7.84%
- 5Y*
- —
- 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%
CDX vs. XLK - Yearly Performance Comparison
| 2026 (YTD) | 2025 | 2024 | 2023 | 2022 | |
|---|---|---|---|---|---|
CDX Simplify High Yield PLUS Credit Hedge ETF | -1.56% | 9.51% | 7.71% | 12.74% | -8.26% |
XLK State Street Technology Select Sector SPDR ETF | 28.52% | 24.61% | 21.63% | 56.02% | -18.84% |
Correlation
The correlation between CDX and XLK is 0.19, which is low. Their price movements are largely independent, making them effective diversification partners.
| Correlation | |
|---|---|
Correlation (1Y) Calculated over the trailing 1-year period | 0.19 |
Correlation (3Y) Calculated over the trailing 3-year period | 0.22 |
Correlation (All Time) Calculated using the full available price history since Feb 15, 2022 | 0.38 |
The correlation between CDX and XLK shifts across timeframes, from 0.19 (1 year) to 0.38 (all time), reflecting how their relationship changes across market environments.
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Return for Risk
CDX vs. XLK — Risk / Return Rank
CDX
XLK
CDX vs. XLK - Risk-Adjusted Trends Comparison
This table presents a comparison of risk-adjusted performance metrics for Simplify High Yield PLUS Credit Hedge ETF (CDX) 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.
| CDX | XLK | Difference | |
|---|---|---|---|
| Sharpe ratioReturn per unit of total volatility | -2.50 | ||
| Sortino ratioReturn per unit of downside risk | -3.05 | ||
| Omega ratioGain probability vs. loss probability | 0.98 | 1.39 | -0.41 |
| Calmar ratioReturn relative to maximum drawdown | -0.17 | 3.36 | -3.53 |
| Martin ratioReturn relative to average drawdown | -0.39 | 10.85 | -11.24 |
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Drawdowns
CDX vs. XLK - Drawdown Comparison
The maximum CDX drawdown since its inception was -13.24%, smaller than the maximum XLK drawdown of -82.05%. Use the drawdown chart below to compare losses from any high point for CDX and XLK.
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Drawdown Indicators
| CDX | XLK | Difference | |
|---|---|---|---|
Max DrawdownLargest peak-to-trough decline | -13.24% | -82.05% | +68.81% |
Max Drawdown (1Y)Largest decline over 1 year | -4.18% | -15.92% | +11.74% |
Max Drawdown (3Y)Largest decline over 3 years | -8.88% | -25.66% | +16.78% |
Max Drawdown (5Y)Largest decline over 5 years | — | -33.56% | — |
Max Drawdown (10Y)Largest decline over 10 years | — | -33.56% | — |
Current DrawdownCurrent decline from peak | -6.57% | -6.77% | +0.20% |
Average DrawdownAverage peak-to-trough decline | -4.35% | -34.93% | +30.58% |
Ulcer IndexDepth and duration of drawdowns from previous peaks | 1.85% | 4.92% | -3.07% |
Volatility
CDX vs. XLK - Volatility Comparison
The current volatility for Simplify High Yield PLUS Credit Hedge ETF (CDX) is 1.73%, while State Street Technology Select Sector SPDR ETF (XLK) has a volatility of 10.86%. This indicates that CDX 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
| CDX | XLK | Difference | |
|---|---|---|---|
Volatility (1M)Calculated over the trailing 1-month period | 1.73% | 10.86% | -9.13% |
Volatility (6M)Calculated over the trailing 6-month period | 4.81% | 18.92% | -14.11% |
Volatility (1Y)Calculated over the trailing 1-year period | 5.80% | 22.55% | -16.75% |
Volatility (5Y)Calculated over the trailing 5-year period, annualized | 11.08% | 25.18% | -14.10% |
Volatility (10Y)Calculated over the trailing 10-year period, annualized | 11.08% | 24.64% | -13.56% |
CDX vs. XLK - Expense Ratio Comparison
CDX has a 0.26% expense ratio, which is higher than XLK's 0.08% expense ratio. However, both funds are considered low-cost compared to the broader market, where average expense ratios usually range from 0.3% to 0.9%.
Dividends
CDX vs. XLK - Dividend Comparison
CDX's dividend yield for the trailing twelve months is around 8.29%, more than XLK's 0.41% yield.
| Position | TTM | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
CDX Simplify High Yield PLUS Credit Hedge ETF | 8.29% | 7.18% | 12.60% | 5.26% | 7.51% | 0.00% | 0.00% | 0.00% | 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
CDX and XLK have a correlation of 0.19, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.
XLK has higher volatility (10.86%) compared to CDX (1.73%). In terms of maximum drawdown, CDX dropped -13.24% vs XLK's -82.05%.
On 3-year performance, XLK leads with 30.28% vs 7.84% for CDX. On fees, XLK is cheaper at 0.08% per year. On volatility, CDX has been the lower-risk option at 1.73%. The better choice depends on whether you care most about return, fees, risk, or income.
Over the 3-year period, XLK has performed better with a 30.28% return vs 7.84%. 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 0.26% for CDX.
CDX has the higher dividend yield at 8.29%, compared with 0.41% for XLK.
CDX is categorized as High Yield Bonds, while XLK is Technology Equities. They also come from different issuers: Simplify and State Street. Their fees differ too: 0.26% for CDX and 0.08% for XLK.
XLK currently has the higher Sharpe Ratio (2.37 vs -0.12), 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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