GENZ vs. XLK

Last updated Jun 4, 2026

GENZ (VanEck Digital Native Economy ETF) and XLK (State Street Technology Select Sector SPDR ETF) are both Technology Equities funds - GENZ tracks the MarketVector Digital Native Economy Index while XLK tracks the S&P Technology Select Sector Daily Capped 35/20 Index. Both are passively managed. Over the past 10 years, GENZ returned 2.44%/yr vs 25.84%/yr for XLK. A 0.55 correlation means they provide meaningful diversification when combined. GENZ charges 0.50%/yr vs 0.08%/yr for XLK.

Performance

GENZ vs. XLK - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in VanEck Digital Native Economy ETF (GENZ) 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, GENZ achieves a -15.11% return, which is significantly lower than XLK's 36.47% return. Over the past 10 years, GENZ has underperformed XLK with an annualized return of 2.44%, while XLK has yielded a comparatively higher 25.84% annualized return.

GENZ

• 1D: -2.34%
• 1M: -4.97%
• YTD: -15.11%
• 6M: -15.40%
• 1Y: -7.41%
• 3Y*: -5.47%
• 5Y*: -7.13%
• 10Y*: 2.44%

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)

GENZ vs. XLK - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
GENZ VanEck Digital Native Economy ETF	-15.11%	4.15%	-1.39%	11.52%	-12.83%	-4.30%	12.72%	30.17%	-26.79%	41.11%
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 GENZ and XLK is 0.38, which is low. Their price movements are largely independent, making them effective diversification partners.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	0.38
Correlation (3Y) Calculated over the trailing 3-year period	0.43
Correlation (5Y) Calculated over the trailing 5-year period	0.52
Correlation (10Y) Calculated over the trailing 10-year period	0.53
Correlation (All Time) Calculated using the full available price history since Jan 25, 2008	0.55

The correlation between GENZ and XLK shifts across timeframes, from 0.38 (1 year) to 0.55 (all time), reflecting how their relationship changes across market environments.

GENZ vs. XLK - Sectors Allocation Comparison

Sectors	GENZ	XLK
Financial Services	29.3%	-
Communication Services	29.1%	-
Technology	20.6%	99.7%
Consumer Cyclical	20.2%	-
Industrials	0.9%	0.1%
Basic Materials	-	-
Consumer Defensive	-	-
Energy	-	0.2%
Healthcare	-	-
Real Estate	-	-
Utilities	-	-

Return for Risk

GENZ vs. XLK — Risk / Return Rank

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

GENZ

GENZ Risk / Return Rank: 6
GENZ Sharpe Ratio Rank: 6
GENZ Sortino Ratio Rank: 5
GENZ Omega Ratio Rank: 5
GENZ Calmar Ratio Rank: 6
GENZ Martin Ratio Rank: 7

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.

GENZ vs. XLK - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for VanEck Digital Native Economy ETF (GENZ) 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.

	GENZ	XLK	Difference
Sharpe ratio: Return per unit of total volatility	-0.39	3.24	-3.63
Sortino ratio: Return per unit of downside risk	-0.44	3.92	-4.37
Omega ratio: Gain probability vs. loss probability	0.95	1.52	-0.57
Calmar ratio: Return relative to maximum drawdown	-0.28	4.22	-4.51
Martin ratio: Return relative to average drawdown	-0.52	14.16	-14.68
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month.

GENZ vs. XLK - Sharpe Ratio Comparison

The current GENZ Sharpe Ratio is -0.39, which is lower than the XLK Sharpe Ratio of 3.24. The chart below compares the historical Sharpe Ratios of GENZ 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

	GENZ	XLK	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	-0.39	3.24	-3.63
Sharpe Ratio (5Y) Calculated over the trailing 5-year period	-0.29	0.96	-1.26
Sharpe Ratio (10Y) Calculated over the trailing 10-year period	0.10	1.06	-0.96
Sharpe Ratio (All Time) Calculated using the full available price history	0.05	0.42	-0.36

Drawdowns

GENZ vs. XLK - Drawdown Comparison

The maximum GENZ drawdown since its inception was -71.12%, smaller than the maximum XLK drawdown of -82.05%. Use the drawdown chart below to compare losses from any high point for GENZ and XLK.

Drawdown Indicators

	GENZ	XLK	Difference
Max Drawdown Largest peak-to-trough decline	-71.12%	-82.05%	+10.93%
Max Drawdown (1Y) Largest decline over 1 year	-26.40%	-15.92%	-10.48%
Max Drawdown (3Y) Largest decline over 3 years	-26.40%	-25.66%	-0.74%
Max Drawdown (5Y) Largest decline over 5 years	-42.89%	-33.56%	-9.33%
Max Drawdown (10Y) Largest decline over 10 years	-56.43%	-33.56%	-22.87%
Current Drawdown Current decline from peak	-33.35%	-1.00%	-32.35%
Average Drawdown Average peak-to-trough decline	-24.54%	-34.96%	+10.42%
Ulcer Index Depth and duration of drawdowns from previous peaks	14.22%	4.74%	+9.48%

Volatility

GENZ vs. XLK - Volatility Comparison

The current volatility for VanEck Digital Native Economy ETF (GENZ) is 5.56%, while State Street Technology Select Sector SPDR ETF (XLK) has a volatility of 6.98%. This indicates that GENZ 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

	GENZ	XLK	Difference
Volatility (1M) Calculated over the trailing 1-month period	5.56%	6.98%	-1.42%
Volatility (6M) Calculated over the trailing 6-month period	15.01%	16.68%	-1.67%
Volatility (1Y) Calculated over the trailing 1-year period	19.01%	20.82%	-1.81%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	24.49%	24.90%	-0.41%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	25.11%	24.49%	+0.62%

GENZ vs. XLK - Expense Ratio Comparison

GENZ has a 0.50% expense ratio, which is higher than XLK's 0.08% expense ratio.

Dividends

GENZ vs. XLK - Dividend Comparison

GENZ's dividend yield for the trailing twelve months is around 3.93%, more than XLK's 0.39% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
GENZ VanEck Digital Native Economy ETF	3.93%	3.34%	2.88%	1.68%	0.44%	0.79%	0.47%	2.95%	3.43%	2.31%	3.15%	4.09%
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 GENZ and XLK in my portfolio?

GENZ and XLK have a correlation of 0.38, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, GENZ or XLK?

XLK has higher volatility (6.98%) compared to GENZ (5.56%). In terms of maximum drawdown, GENZ dropped -71.12% vs XLK's -82.05%.

Which ETF is better, GENZ or XLK?

On 10-year performance, XLK leads with 25.84% vs 2.44% for GENZ. On fees, XLK is cheaper at 0.08% per year. On volatility, GENZ has been the lower-risk option at 5.56%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, GENZ or XLK?

Over the 10-year period, XLK has performed better with a 25.84% return vs 2.44%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, GENZ or XLK?

XLK is cheaper with a 0.08% expense ratio, compared with 0.50% for GENZ.

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

GENZ has the higher dividend yield at 3.93%, compared with 0.39% for XLK.

What is the main difference between GENZ and XLK?

GENZ tracks MarketVector Digital Native Economy Index, while XLK tracks S&P Technology Select Sector Daily Capped 35/20 Index. They also come from different issuers: VanEck and State Street. Their fees differ too: 0.50% for GENZ and 0.08% for XLK.

Which has better risk-adjusted returns?

XLK currently has the higher Sharpe Ratio (3.24 vs -0.39), 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.