CTA vs. XLK

Last updated Jun 14, 2026

CTA (Simplify Managed Futures Strategy ETF) and XLK (State Street Technology Select Sector SPDR ETF) are both exchange-traded funds - CTA is a Systematic Trend fund actively managed by Simplify, while XLK is a Technology Equities fund tracking the S&P Technology Select Sector Daily Capped 35/20 Index. CTA is actively managed, while XLK is passively managed. Over the past 3 years, CTA returned 9.41%/yr vs 30.28%/yr for XLK. At a correlation of -0.10, they often move in opposite directions. CTA charges 0.78%/yr vs 0.08%/yr for XLK.

Performance

CTA vs. XLK - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in Simplify Managed Futures Strategy ETF (CTA) 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, CTA achieves a 6.10% return, which is significantly lower than XLK's 28.52% return.

CTA

• 1D: -1.22%
• 1M: -10.45%
• YTD: 6.10%
• 6M: 8.48%
• 1Y: 6.45%
• 3Y*: 9.41%
• 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%

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

CTA vs. XLK - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022
CTA Simplify Managed Futures Strategy ETF	6.10%	0.88%	24.15%	-2.23%	9.01%
XLK State Street Technology Select Sector SPDR ETF	28.52%	24.61%	21.63%	56.02%	-12.90%

Correlation

The correlation between CTA and XLK is -0.07, meaning there is essentially no relationship between their price movements. Each responds to its own set of market drivers, making them strong candidates for combining in a diversified portfolio.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	-0.07
Correlation (3Y) Calculated over the trailing 3-year period	-0.05
Correlation (All Time) Calculated using the full available price history since Mar 8, 2022	-0.10

Return for Risk

CTA vs. XLK — Risk / Return Rank

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

CTA

CTA Risk / Return Rank: 14
CTA Sharpe Ratio Rank: 14
CTA Sortino Ratio Rank: 13
CTA Omega Ratio Rank: 14
CTA Calmar Ratio Rank: 15
CTA Martin Ratio Rank: 16

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.

CTA vs. XLK - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Simplify Managed Futures Strategy ETF (CTA) 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.

	CTA	XLK	Difference
Sharpe ratio: Return per unit of total volatility	0.28	2.37	-2.09
Sortino ratio: Return per unit of downside risk	0.50	2.92	-2.42
Omega ratio: Gain probability vs. loss probability	1.07	1.39	-0.33
Calmar ratio: Return relative to maximum drawdown	0.44	3.36	-2.92
Martin ratio: Return relative to average drawdown	1.24	10.85	-9.61

CTA vs. XLK - Sharpe Ratio Comparison

The current CTA Sharpe Ratio is 0.28, which is lower than the XLK Sharpe Ratio of 2.37. The chart below compares the historical Sharpe Ratios of CTA 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

CTA vs. XLK - Drawdown Comparison

The maximum CTA drawdown since its inception was -18.07%, smaller than the maximum XLK drawdown of -82.05%. Use the drawdown chart below to compare losses from any high point for CTA and XLK.

Drawdown Indicators

	CTA	XLK	Difference
Max Drawdown Largest peak-to-trough decline	-18.07%	-82.05%	+63.98%
Max Drawdown (1Y) Largest decline over 1 year	-12.94%	-15.92%	+2.98%
Max Drawdown (3Y) Largest decline over 3 years	-12.94%	-25.66%	+12.72%
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	-12.94%	-6.77%	-6.17%
Average Drawdown Average peak-to-trough decline	-5.71%	-34.93%	+29.22%
Ulcer Index Depth and duration of drawdowns from previous peaks	4.57%	4.92%	-0.35%

Volatility

CTA vs. XLK - Volatility Comparison

The current volatility for Simplify Managed Futures Strategy ETF (CTA) is 6.16%, while State Street Technology Select Sector SPDR ETF (XLK) has a volatility of 10.86%. This indicates that CTA 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.

Volatility by Period

	CTA	XLK	Difference
Volatility (1M) Calculated over the trailing 1-month period	6.16%	10.86%	-4.70%
Volatility (6M) Calculated over the trailing 6-month period	17.59%	18.92%	-1.33%
Volatility (1Y) Calculated over the trailing 1-year period	20.33%	22.55%	-2.22%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	16.61%	25.18%	-8.57%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	16.61%	24.64%	-8.03%

CTA vs. XLK - Expense Ratio Comparison

CTA has a 0.78% expense ratio, which is higher than XLK's 0.08% expense ratio.

Dividends

CTA vs. XLK - Dividend Comparison

CTA's dividend yield for the trailing twelve months is around 5.13%, more than XLK's 0.41% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
CTA Simplify Managed Futures Strategy ETF	5.13%	3.19%	4.80%	7.78%	6.58%	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

Can I hold both CTA and XLK in my portfolio?

CTA and XLK have a correlation of -0.07, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, CTA or XLK?

XLK has higher volatility (10.86%) compared to CTA (6.16%). In terms of maximum drawdown, CTA dropped -18.07% vs XLK's -82.05%.

Which ETF is better, CTA or XLK?

On 3-year performance, XLK leads with 30.28% vs 9.41% for CTA. On fees, XLK is cheaper at 0.08% per year. On volatility, CTA has been the lower-risk option at 6.16%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, CTA or XLK?

Over the 3-year period, XLK has performed better with a 30.28% return vs 9.41%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, CTA or XLK?

XLK is cheaper with a 0.08% expense ratio, compared with 0.78% for CTA.

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

CTA has the higher dividend yield at 5.13%, compared with 0.41% for XLK.

What is the main difference between CTA and XLK?

CTA is categorized as Systematic Trend, while XLK is Technology Equities. They also come from different issuers: Simplify and State Street. Their fees differ too: 0.78% for CTA and 0.08% for XLK.

Which has better risk-adjusted returns?

XLK currently has the higher Sharpe Ratio (2.37 vs 0.28), 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.