GRID vs. XLK

Last updated Jun 14, 2026

GRID (First Trust NASDAQ Clean Edge Smart Grid Infrastructure Index Fund) and XLK (State Street Technology Select Sector SPDR ETF) are both exchange-traded funds - GRID is a Alternative Energy Equities fund tracking the Nasdaq Clean Edge Smart Grid Infrastructure Index, 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, GRID returned 19.76%/yr vs 25.19%/yr for XLK. A 0.65 correlation means they provide meaningful diversification when combined. GRID charges 0.70%/yr vs 0.08%/yr for XLK.

Performance

GRID vs. XLK - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in First Trust NASDAQ Clean Edge Smart Grid Infrastructure Index Fund (GRID) 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, GRID achieves a 23.59% return, which is significantly lower than XLK's 28.52% return. Over the past 10 years, GRID has underperformed XLK with an annualized return of 19.76%, while XLK has yielded a comparatively higher 25.19% annualized return.

GRID

• 1D: -0.18%
• 1M: -4.22%
• YTD: 23.59%
• 6M: 24.02%
• 1Y: 43.17%
• 3Y*: 23.21%
• 5Y*: 16.83%
• 10Y*: 19.76%

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)

GRID vs. XLK - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
GRID First Trust NASDAQ Clean Edge Smart Grid Infrastructure Index Fund	23.59%	29.65%	15.18%	21.57%	-13.89%	27.65%	48.84%	42.80%	-22.69%	27.44%
XLK State Street Technology Select Sector SPDR ETF	28.52%	24.61%	21.63%	56.02%	-27.73%	34.74%	43.62%	49.86%	-1.68%	34.26%

Correlation

The correlation between GRID and XLK is 0.76, 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	0.76
Correlation (3Y) Calculated over the trailing 3-year period	0.74
Correlation (5Y) Calculated over the trailing 5-year period	0.77
Correlation (10Y) Calculated over the trailing 10-year period	0.69
Correlation (All Time) Calculated using the full available price history since Nov 17, 2009	0.65

The correlation between GRID and XLK shifts across timeframes, from 0.65 (all time) to 0.77 (5 years), reflecting how their relationship changes across market environments.

GRID vs. XLK - Sectors Allocation Comparison

Sectors	GRID	XLK
Industrials	24.4%	0.1%
Technology	12.6%	99.7%
Utilities	3.9%	-
Consumer Cyclical	2.4%	-
Energy	1.6%	0.2%
Basic Materials	0.0%	-
Communication Services	-	-
Consumer Defensive	-	-
Financial Services	-	-
Healthcare	-	-
Real Estate	-	-

Return for Risk

GRID vs. XLK — Risk / Return Rank

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

GRID

GRID Risk / Return Rank: 73
GRID Sharpe Ratio Rank: 72
GRID Sortino Ratio Rank: 69
GRID Omega Ratio Rank: 69
GRID Calmar Ratio Rank: 79
GRID Martin Ratio Rank: 78

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.

GRID vs. XLK - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for First Trust NASDAQ Clean Edge Smart Grid Infrastructure Index Fund (GRID) 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.

	GRID	XLK	Difference
Sharpe ratio: Return per unit of total volatility	2.02	2.37	-0.35
Sortino ratio: Return per unit of downside risk	2.70	2.92	-0.22
Omega ratio: Gain probability vs. loss probability	1.35	1.39	-0.04
Calmar ratio: Return relative to maximum drawdown	3.57	3.36	+0.21
Martin ratio: Return relative to average drawdown	12.89	10.85	+2.04

GRID vs. XLK - Sharpe Ratio Comparison

The current GRID Sharpe Ratio is 2.02, which is comparable to the XLK Sharpe Ratio of 2.37. The chart below compares the historical Sharpe Ratios of GRID 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

GRID vs. XLK - Drawdown Comparison

The maximum GRID drawdown since its inception was -40.56%, smaller than the maximum XLK drawdown of -82.05%. Use the drawdown chart below to compare losses from any high point for GRID and XLK.

Drawdown Indicators

	GRID	XLK	Difference
Max Drawdown Largest peak-to-trough decline	-40.56%	-82.05%	+41.49%
Max Drawdown (1Y) Largest decline over 1 year	-11.73%	-15.92%	+4.19%
Max Drawdown (3Y) Largest decline over 3 years	-20.77%	-25.66%	+4.89%
Max Drawdown (5Y) Largest decline over 5 years	-29.64%	-33.56%	+3.92%
Max Drawdown (10Y) Largest decline over 10 years	-40.56%	-33.56%	-7.00%
Current Drawdown Current decline from peak	-5.40%	-6.77%	+1.37%
Average Drawdown Average peak-to-trough decline	-8.42%	-34.93%	+26.51%
Ulcer Index Depth and duration of drawdowns from previous peaks	3.25%	4.92%	-1.67%

Volatility

GRID vs. XLK - Volatility Comparison

The current volatility for First Trust NASDAQ Clean Edge Smart Grid Infrastructure Index Fund (GRID) is 9.56%, while State Street Technology Select Sector SPDR ETF (XLK) has a volatility of 10.86%. This indicates that GRID 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

	GRID	XLK	Difference
Volatility (1M) Calculated over the trailing 1-month period	9.56%	10.86%	-1.30%
Volatility (6M) Calculated over the trailing 6-month period	17.70%	18.92%	-1.22%
Volatility (1Y) Calculated over the trailing 1-year period	20.73%	22.55%	-1.82%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	21.24%	25.18%	-3.94%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	22.90%	24.64%	-1.74%

GRID vs. XLK - Expense Ratio Comparison

GRID has a 0.70% expense ratio, which is higher than XLK's 0.08% expense ratio.

Dividends

GRID vs. XLK - Dividend Comparison

GRID's dividend yield for the trailing twelve months is around 0.80%, more than XLK's 0.41% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
GRID First Trust NASDAQ Clean Edge Smart Grid Infrastructure Index Fund	0.80%	1.01%	1.06%	1.23%	1.26%	0.63%	0.68%	1.26%	1.28%	1.07%	1.07%	1.23%
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 GRID and XLK in my portfolio?

GRID and XLK have a correlation of 0.76, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, GRID or XLK?

XLK has higher volatility (10.86%) compared to GRID (9.56%). In terms of maximum drawdown, GRID dropped -40.56% vs XLK's -82.05%.

Which ETF is better, GRID or XLK?

On 10-year performance, XLK leads with 25.19% vs 19.76% for GRID. On fees, XLK is cheaper at 0.08% per year. On volatility, GRID has been the lower-risk option at 9.56%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, GRID or XLK?

Over the 10-year period, XLK has performed better with a 25.19% return vs 19.76%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, GRID or XLK?

XLK is cheaper with a 0.08% expense ratio, compared with 0.70% for GRID.

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

GRID has the higher dividend yield at 0.80%, compared with 0.41% for XLK.

What is the main difference between GRID and XLK?

GRID is categorized as Alternative Energy Equities, while XLK is Technology Equities. GRID tracks Nasdaq Clean Edge Smart Grid Infrastructure Index, while XLK tracks S&P Technology Select Sector Daily Capped 35/20 Index. They also come from different issuers: First Trust and State Street. Their fees differ too: 0.70% for GRID and 0.08% for XLK.

Which has better risk-adjusted returns?

XLK currently has the higher Sharpe Ratio (2.37 vs 2.02), 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.