EFO vs. XLK

Last updated Jun 4, 2026

EFO (ProShares Ultra MSCI EAFE) and XLK (State Street Technology Select Sector SPDR ETF) are both exchange-traded funds - EFO is a Leveraged Equities fund tracking the MSCI EAFE Index (200%), 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, EFO returned 10.16%/yr vs 25.84%/yr for XLK. A 0.60 correlation means they provide meaningful diversification when combined. EFO charges 0.95%/yr vs 0.08%/yr for XLK.

Performance

EFO vs. XLK - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in ProShares Ultra MSCI EAFE (EFO) 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, EFO achieves a 12.87% return, which is significantly lower than XLK's 36.47% return. Over the past 10 years, EFO has underperformed XLK with an annualized return of 10.16%, while XLK has yielded a comparatively higher 25.84% annualized return.

EFO

• 1D: -1.58%
• 1M: 6.17%
• YTD: 12.87%
• 6M: 17.60%
• 1Y: 34.57%
• 3Y*: 23.50%
• 5Y*: 7.18%
• 10Y*: 10.16%

XLK

• 1D: -1.00%
• 1M: 21.09%
• YTD: 36.47%
• 6M: 35.71%
• 1Y: 66.93%
• 3Y*: 33.90%
• 5Y*: 23.83%
• 10Y*: 25.84%

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

EFO vs. XLK - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
EFO ProShares Ultra MSCI EAFE	12.87%	58.51%	-2.15%	25.77%	-33.62%	19.38%	2.29%	40.93%	-30.91%	51.78%
XLK State Street Technology Select Sector SPDR ETF	36.47%	24.61%	21.63%	56.02%	-27.73%	34.74%	43.62%	49.86%	-1.68%	34.26%

Correlation

The correlation between EFO and XLK is 0.57, 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	0.57
Correlation (3Y) Calculated over the trailing 3-year period	0.57
Correlation (5Y) Calculated over the trailing 5-year period	0.64
Correlation (10Y) Calculated over the trailing 10-year period	0.62
Correlation (All Time) Calculated using the full available price history since Jun 5, 2009	0.60

The correlation between EFO and XLK has been stable across timeframes, ranging from 0.57 to 0.64 - a consistent structural relationship.

EFO vs. XLK - Sectors Allocation Comparison

Sectors	EFO	XLK
Financial Services	40.7%	-
Basic Materials	-	-
Communication Services	-	-
Consumer Cyclical	-	-
Consumer Defensive	-	-
Energy	-	0.2%
Healthcare	-	-
Industrials	-	0.1%
Real Estate	-	-
Technology	-	99.7%
Utilities	-	-

Return for Risk

EFO vs. XLK — Risk / Return Rank

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

EFO

EFO Risk / Return Rank: 32
EFO Sharpe Ratio Rank: 31
EFO Sortino Ratio Rank: 31
EFO Omega Ratio Rank: 30
EFO Calmar Ratio Rank: 32
EFO Martin Ratio Rank: 35

XLK

XLK Risk / Return Rank: 83
XLK Sharpe Ratio Rank: 91
XLK Sortino Ratio Rank: 85
XLK Omega Ratio Rank: 83
XLK Calmar Ratio Rank: 80
XLK Martin Ratio Rank: 73

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.

EFO vs. XLK - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for ProShares Ultra MSCI EAFE (EFO) 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.

	EFO	XLK	Difference
Sharpe ratio: Return per unit of total volatility	1.14	3.24	-2.10
Sortino ratio: Return per unit of downside risk	1.71	3.92	-2.21
Omega ratio: Gain probability vs. loss probability	1.21	1.52	-0.31
Calmar ratio: Return relative to maximum drawdown	1.57	4.22	-2.66
Martin ratio: Return relative to average drawdown	5.42	14.16	-8.74
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month.

EFO vs. XLK - Sharpe Ratio Comparison

The current EFO Sharpe Ratio is 1.14, which is lower than the XLK Sharpe Ratio of 3.24. The chart below compares the historical Sharpe Ratios of EFO 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.

Sharpe Ratios by Period

	EFO	XLK	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	1.14	3.24	-2.10
Sharpe Ratio (5Y) Calculated over the trailing 5-year period	0.22	0.96	-0.74
Sharpe Ratio (10Y) Calculated over the trailing 10-year period	0.30	1.06	-0.76
Sharpe Ratio (All Time) Calculated using the full available price history	0.23	0.42	-0.18

Drawdowns

EFO vs. XLK - Drawdown Comparison

The maximum EFO drawdown since its inception was -63.52%, smaller than the maximum XLK drawdown of -82.05%. Use the drawdown chart below to compare losses from any high point for EFO and XLK.

Drawdown Indicators

	EFO	XLK	Difference
Max Drawdown Largest peak-to-trough decline	-63.52%	-82.05%	+18.53%
Max Drawdown (1Y) Largest decline over 1 year	-22.18%	-15.92%	-6.26%
Max Drawdown (3Y) Largest decline over 3 years	-26.85%	-25.66%	-1.19%
Max Drawdown (5Y) Largest decline over 5 years	-53.95%	-33.56%	-20.39%
Max Drawdown (10Y) Largest decline over 10 years	-63.52%	-33.56%	-29.96%
Current Drawdown Current decline from peak	-5.54%	-1.00%	-4.54%
Average Drawdown Average peak-to-trough decline	-18.67%	-34.96%	+16.29%
Ulcer Index Depth and duration of drawdowns from previous peaks	6.39%	4.74%	+1.65%

Volatility

EFO vs. XLK - Volatility Comparison

ProShares Ultra MSCI EAFE (EFO) has a higher volatility of 10.08% compared to State Street Technology Select Sector SPDR ETF (XLK) at 6.98%. This indicates that EFO'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

	EFO	XLK	Difference
Volatility (1M) Calculated over the trailing 1-month period	10.08%	6.98%	+3.10%
Volatility (6M) Calculated over the trailing 6-month period	25.18%	16.68%	+8.50%
Volatility (1Y) Calculated over the trailing 1-year period	30.54%	20.82%	+9.72%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	32.98%	24.90%	+8.08%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	34.09%	24.49%	+9.60%

EFO vs. XLK - Expense Ratio Comparison

EFO has a 0.95% expense ratio, which is higher than XLK's 0.08% expense ratio.

Dividends

EFO vs. XLK - Dividend Comparison

EFO's dividend yield for the trailing twelve months is around 1.54%, more than XLK's 0.39% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
EFO ProShares Ultra MSCI EAFE	1.54%	1.65%	2.24%	1.93%	0.00%	0.00%	0.00%	0.37%	0.11%	0.00%	0.00%	0.00%
XLK State Street Technology Select Sector SPDR ETF	0.39%	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 EFO and XLK in my portfolio?

EFO and XLK have a correlation of 0.57, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, EFO or XLK?

EFO has higher volatility (10.08%) compared to XLK (6.98%). In terms of maximum drawdown, EFO dropped -63.52% vs XLK's -82.05%.

Which ETF is better, EFO or XLK?

On 10-year performance, XLK leads with 25.84% vs 10.16% for EFO. On fees, XLK is cheaper at 0.08% per year. On volatility, XLK has been the lower-risk option at 6.98%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, EFO or XLK?

Over the 10-year period, XLK has performed better with a 25.84% return vs 10.16%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, EFO or XLK?

XLK is cheaper with a 0.08% expense ratio, compared with 0.95% for EFO.

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

EFO has the higher dividend yield at 1.54%, compared with 0.39% for XLK.

What is the main difference between EFO and XLK?

EFO is categorized as Leveraged Equities, while XLK is Technology Equities. EFO tracks MSCI EAFE Index (200%), while XLK tracks S&P Technology Select Sector Daily Capped 35/20 Index. They also come from different issuers: ProShares and State Street. Their fees differ too: 0.95% for EFO and 0.08% for XLK.

Which has better risk-adjusted returns?

XLK currently has the higher Sharpe Ratio (3.24 vs 1.14), 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.