FMTM vs. XLK

Last updated Jul 12, 2026

FMTM (MarketDesk Focused U.S. Momentum ETF) and XLK (State Street Technology Select Sector SPDR ETF) are both exchange-traded funds - FMTM is a Momentum fund, while XLK is a Technology Equities fund tracking the S&P Technology Select Sector Daily Capped 35/20 Index. FMTM is actively managed, while XLK is passively managed. Over the past year, FMTM returned 54.93% vs 45.99% for XLK. A 0.71 correlation means they provide meaningful diversification when combined. FMTM charges 0.45%/yr vs 0.08%/yr for XLK.

Performance

FMTM vs. XLK - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in MarketDesk Focused U.S. Momentum ETF (FMTM) 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, FMTM achieves a 26.52% return, which is significantly lower than XLK's 29.35% return.

FMTM

• 1D: -0.66%
• 1M: -1.05%
• 6M: 19.24%
• YTD: 26.52%
• 1Y: 54.93%
• 3Y*: —
• 5Y*: —
• 10Y*: —

XLK

• 1D: 0.23%
• 1M: 1.52%
• 6M: 27.43%
• YTD: 29.35%
• 1Y: 45.99%
• 3Y*: 30.12%
• 5Y*: 20.60%
• 10Y*: 24.88%

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

FMTM vs. XLK - Yearly Performance Comparison

	2026 (YTD)	2025
FMTM MarketDesk Focused U.S. Momentum ETF	26.52%	28.21%
XLK State Street Technology Select Sector SPDR ETF	29.35%	34.82%

Correlation

The correlation between FMTM and XLK is 0.79, 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	0.79
Correlation (All Time) Calculated using the full available price history since Mar 20, 2025	0.71

The correlation between FMTM and XLK has been stable across timeframes, ranging from 0.71 to 0.79 - a consistent structural relationship.

Return for Risk

FMTM vs. XLK — Risk / Return Rank

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

FMTM

FMTM Risk / Return Rank: 82
FMTM Sharpe Ratio Rank: 83
FMTM Sortino Ratio Rank: 73
FMTM Omega Ratio Rank: 75
FMTM Calmar Ratio Rank: 90
FMTM Martin Ratio Rank: 90

XLK

XLK Risk / Return Rank: 68
XLK Sharpe Ratio Rank: 73
XLK Sortino Ratio Rank: 64
XLK Omega Ratio Rank: 66
XLK Calmar Ratio Rank: 72
XLK Martin Ratio Rank: 62

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.

FMTM vs. XLK - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for MarketDesk Focused U.S. Momentum ETF (FMTM) 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.

	FMTM	XLK	Difference
Sharpe ratio: Return per unit of total volatility	2.10	1.88	+0.23
Sortino ratio: Return per unit of downside risk	2.62	2.39	+0.23
Omega ratio: Gain probability vs. loss probability	1.35	1.32	+0.03
Calmar ratio: Return relative to maximum drawdown	4.46	2.86	+1.59
Martin ratio: Return relative to average drawdown	15.90	8.70	+7.21

FMTM vs. XLK - Sharpe Ratio Comparison

The current FMTM Sharpe Ratio is 2.10, which is comparable to the XLK Sharpe Ratio of 1.88. The chart below compares the historical Sharpe Ratios of FMTM 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

FMTM vs. XLK - Drawdown Comparison

The maximum FMTM drawdown since its inception was -12.12%, smaller than the maximum XLK drawdown of -82.05%. Use the drawdown chart below to compare losses from any high point for FMTM and XLK.

Drawdown Indicators

	FMTM	XLK	Difference
Max Drawdown Largest peak-to-trough decline	-12.12%	-82.05%	+69.93%
Max Drawdown (1Y) Largest decline over 1 year	-12.12%	-15.92%	+3.80%
Max Drawdown (3Y) Largest decline over 3 years	—	-25.66%	—
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	-6.83%	-6.16%	-0.67%
Average Drawdown Average peak-to-trough decline	-2.01%	-34.85%	+32.84%
Ulcer Index Depth and duration of drawdowns from previous peaks	3.39%	5.23%	-1.84%

Volatility

FMTM vs. XLK - Volatility Comparison

MarketDesk Focused U.S. Momentum ETF (FMTM) and State Street Technology Select Sector SPDR ETF (XLK) have volatilities of 11.40% and 10.98%, 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

	FMTM	XLK	Difference
Volatility (1M) Calculated over the trailing 1-month period	11.40%	10.98%	+0.42%
Volatility (6M) Calculated over the trailing 6-month period	20.31%	20.68%	-0.37%
Volatility (1Y) Calculated over the trailing 1-year period	25.66%	24.26%	+1.40%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	24.46%	25.52%	-1.06%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	24.46%	24.77%	-0.31%

FMTM vs. XLK - Expense Ratio Comparison

FMTM has a 0.45% expense ratio, which is higher than XLK's 0.08% expense ratio.

Dividends

FMTM vs. XLK - Dividend Comparison

FMTM's dividend yield for the trailing twelve months is around 0.23%, less than XLK's 0.43% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
FMTM MarketDesk Focused U.S. Momentum ETF	0.23%	0.30%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%
XLK State Street Technology Select Sector SPDR ETF	0.43%	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 FMTM and XLK in my portfolio?

FMTM and XLK have a correlation of 0.79, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, FMTM or XLK?

FMTM has higher volatility (11.40%) compared to XLK (10.98%). In terms of maximum drawdown, FMTM dropped -12.12% vs XLK's -82.05%.

Which ETF is better, FMTM or XLK?

On 1-year performance, FMTM leads with 54.93% vs 45.99% for XLK. On fees, XLK is cheaper at 0.08% per year. On volatility, XLK has been the lower-risk option at 10.98%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, FMTM or XLK?

Over the 1-year period, FMTM has performed better with a 54.93% return vs 45.99%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, FMTM or XLK?

XLK is cheaper with a 0.08% expense ratio, compared with 0.45% for FMTM.

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

XLK has the higher dividend yield at 0.43%, compared with 0.23% for FMTM.

What is the main difference between FMTM and XLK?

FMTM is categorized as Momentum, while XLK is Technology Equities. Their fees differ too: 0.45% for FMTM and 0.08% for XLK.

Which has better risk-adjusted returns?

FMTM currently has the higher Sharpe Ratio (2.10 vs 1.88), 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.