ETEC vs. XLK

Last updated Jun 4, 2026

ETEC (iShares Breakthrough Environmental Solutions ETF) and XLK (State Street Technology Select Sector SPDR ETF) are both Technology Equities funds - ETEC tracks the Morningstar Global Emerging Green Technologies Select Index - Benchmark TR Net while XLK tracks the S&P Technology Select Sector Daily Capped 35/20 Index. Both are passively managed. Over the past 3 years, ETEC returned 10.90%/yr vs 33.90%/yr for XLK. A 0.55 correlation means they provide meaningful diversification when combined. ETEC charges 0.47%/yr vs 0.08%/yr for XLK.

Performance

ETEC vs. XLK - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in iShares Breakthrough Environmental Solutions ETF (ETEC) 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, ETEC achieves a 29.01% return, which is significantly lower than XLK's 36.47% return.

ETEC

• 1D: 0.71%
• 1M: 10.60%
• YTD: 29.01%
• 6M: 30.09%
• 1Y: 63.13%
• 3Y*: 10.90%
• 5Y*: —
• 10Y*: —

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)

ETEC vs. XLK - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023
ETEC iShares Breakthrough Environmental Solutions ETF	29.01%	31.89%	-18.16%	-6.50%
XLK State Street Technology Select Sector SPDR ETF	36.47%	24.61%	21.63%	30.12%

Correlation

The correlation between ETEC and XLK is 0.59, 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	0.59
Correlation (3Y) Calculated over the trailing 3-year period	0.55
Correlation (All Time) Calculated using the full available price history since Mar 31, 2023	0.55

The correlation between ETEC and XLK has been stable across timeframes, ranging from 0.55 to 0.59 - a consistent structural relationship.

ETEC vs. XLK - Sectors Allocation Comparison

Sectors	ETEC	XLK
Industrials	36.4%	0.1%
Technology	23.0%	99.7%
Consumer Cyclical	22.5%	-
Energy	11.9%	0.2%
Basic Materials	3.0%	-
Utilities	2.9%	-
Communication Services	-	-
Consumer Defensive	-	-
Financial Services	-	-
Healthcare	-	-
Real Estate	-	-

Return for Risk

ETEC vs. XLK — Risk / Return Rank

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

ETEC

ETEC Risk / Return Rank: 86
ETEC Sharpe Ratio Rank: 88
ETEC Sortino Ratio Rank: 85
ETEC Omega Ratio Rank: 80
ETEC Calmar Ratio Rank: 91
ETEC Martin Ratio Rank: 87

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.

ETEC vs. XLK - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for iShares Breakthrough Environmental Solutions ETF (ETEC) 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.

	ETEC	XLK	Difference
Sharpe ratio: Return per unit of total volatility	2.97	3.24	-0.26
Sortino ratio: Return per unit of downside risk	3.83	3.92	-0.10
Omega ratio: Gain probability vs. loss probability	1.48	1.52	-0.04
Calmar ratio: Return relative to maximum drawdown	6.05	4.22	+1.82
Martin ratio: Return relative to average drawdown	18.94	14.16	+4.78
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month.

ETEC vs. XLK - Sharpe Ratio Comparison

The current ETEC Sharpe Ratio is 2.97, which is comparable to the XLK Sharpe Ratio of 3.24. The chart below compares the historical Sharpe Ratios of ETEC 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

	ETEC	XLK	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	2.97	3.24	-0.26
Sharpe Ratio (5Y) Calculated over the trailing 5-year period	—	0.96	—
Sharpe Ratio (10Y) Calculated over the trailing 10-year period	—	1.06	—
Sharpe Ratio (All Time) Calculated using the full available price history	0.37	0.42	-0.05

Drawdowns

ETEC vs. XLK - Drawdown Comparison

The maximum ETEC drawdown since its inception was -39.71%, smaller than the maximum XLK drawdown of -82.05%. Use the drawdown chart below to compare losses from any high point for ETEC and XLK.

Drawdown Indicators

	ETEC	XLK	Difference
Max Drawdown Largest peak-to-trough decline	-39.71%	-82.05%	+42.34%
Max Drawdown (1Y) Largest decline over 1 year	-10.49%	-15.92%	+5.43%
Max Drawdown (3Y) Largest decline over 3 years	-39.71%	-25.66%	-14.05%
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	0.00%	-1.00%	+1.00%
Average Drawdown Average peak-to-trough decline	-15.00%	-34.96%	+19.96%
Ulcer Index Depth and duration of drawdowns from previous peaks	3.34%	4.74%	-1.40%

Volatility

ETEC vs. XLK - Volatility Comparison

iShares Breakthrough Environmental Solutions ETF (ETEC) and State Street Technology Select Sector SPDR ETF (XLK) have volatilities of 7.14% and 6.98%, 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

	ETEC	XLK	Difference
Volatility (1M) Calculated over the trailing 1-month period	7.14%	6.98%	+0.16%
Volatility (6M) Calculated over the trailing 6-month period	15.83%	16.68%	-0.85%
Volatility (1Y) Calculated over the trailing 1-year period	21.36%	20.82%	+0.54%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	23.87%	24.90%	-1.03%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	23.87%	24.49%	-0.62%

ETEC vs. XLK - Expense Ratio Comparison

ETEC has a 0.47% expense ratio, which is higher than XLK's 0.08% expense ratio.

Dividends

ETEC vs. XLK - Dividend Comparison

ETEC's dividend yield for the trailing twelve months is around 0.25%, less than XLK's 0.39% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
ETEC iShares Breakthrough Environmental Solutions ETF	0.25%	0.33%	1.24%	4.18%	0.00%	0.00%	0.00%	0.00%	0.00%	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 ETEC and XLK in my portfolio?

ETEC and XLK have a correlation of 0.59, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, ETEC or XLK?

ETEC has higher volatility (7.14%) compared to XLK (6.98%). In terms of maximum drawdown, ETEC dropped -39.71% vs XLK's -82.05%.

Which ETF is better, ETEC or XLK?

On 3-year performance, XLK leads with 33.90% vs 10.90% for ETEC. 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, ETEC or XLK?

Over the 3-year period, XLK has performed better with a 33.90% return vs 10.90%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, ETEC or XLK?

XLK is cheaper with a 0.08% expense ratio, compared with 0.47% for ETEC.

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

XLK has the higher dividend yield at 0.39%, compared with 0.25% for ETEC.

What is the main difference between ETEC and XLK?

ETEC tracks Morningstar Global Emerging Green Technologies Select Index - Benchmark TR Net, while XLK tracks S&P Technology Select Sector Daily Capped 35/20 Index. They also come from different issuers: iShares and State Street. Their fees differ too: 0.47% for ETEC and 0.08% for XLK.

Which has better risk-adjusted returns?

XLK currently has the higher Sharpe Ratio (3.24 vs 2.97), 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.