IGM vs. XLK
Compare and contrast key facts about iShares Expanded Tech Sector ETF (IGM) and Technology Select Sector SPDR Fund (XLK).
IGM and XLK are both exchange-traded funds (ETFs), meaning they are traded on stock exchanges and can be bought and sold throughout the day. IGM is a passively managed fund by iShares that tracks the performance of the S&P North American Technology Sector Index. It was launched on Mar 13, 2001. XLK is a passively managed fund by State Street that tracks the performance of the Technology Select Sector Index. It was launched on Dec 16, 1998. Both IGM and XLK are passive ETFs, meaning that they are not actively managed but aim to replicate the performance of the underlying index as closely as possible.
Scroll down to visually compare performance, riskiness, drawdowns, and other indicators and decide which better suits your portfolio: IGM or XLK.
Key characteristics
| IGM | XLK | |
|---|---|---|
| YTD Return | 12.60% | 5.41% |
| 1Y Return | 55.81% | 38.40% |
| 3Y Return (Ann) | 12.95% | 14.97% |
| 5Y Return (Ann) | 20.91% | 22.00% |
| 10Y Return (Ann) | 23.23% | 20.43% |
| Sharpe Ratio | 2.80 | 2.09 |
| Daily Std Dev | 19.72% | 18.05% |
| Max Drawdown | -65.59% | -82.05% |
| Current Drawdown | -3.61% | -3.86% |
Correlation
The correlation between IGM and XLK is 0.94, which is considered to be high. That indicates a strong positive relationship between their price movements. Having highly-correlated positions in a portfolio may signal a lack of diversification, potentially leading to increased risk during market downturns.
Performance
IGM vs. XLK - Performance Comparison
In the year-to-date period, IGM achieves a 12.60% return, which is significantly higher than XLK's 5.41% return. Over the past 10 years, IGM has outperformed XLK with an annualized return of 23.23%, while XLK has yielded a comparatively lower 20.43% annualized return. The chart below displays the growth of a $10,000 investment in both assets, with all prices adjusted for splits and dividends.
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IGM vs. XLK - Expense Ratio Comparison
IGM has a 0.46% expense ratio, which is higher than XLK's 0.13% expense ratio.
Risk-Adjusted Performance
IGM vs. XLK - Risk-Adjusted Performance Comparison
This table presents a comparison of risk-adjusted performance metrics for iShares Expanded Tech Sector ETF (IGM) and Technology Select Sector SPDR Fund (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.
Dividends
IGM vs. XLK - Dividend Comparison
IGM's dividend yield for the trailing twelve months is around 1.74%, more than XLK's 0.73% yield.
| TTM | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 | 2014 | 2013 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
IGM iShares Expanded Tech Sector ETF | 1.74% | 2.37% | 3.16% | 0.97% | 1.93% | 2.99% | 3.45% | 3.42% | 5.40% | 4.72% | 5.25% | 4.66% |
XLK Technology Select Sector SPDR Fund | 0.73% | 0.76% | 1.04% | 0.65% | 0.92% | 1.16% | 1.60% | 1.37% | 1.74% | 1.79% | 1.75% | 1.70% |
Drawdowns
IGM vs. XLK - Drawdown Comparison
The maximum IGM drawdown since its inception was -65.59%, smaller than the maximum XLK drawdown of -82.05%. Use the drawdown chart below to compare losses from any high point for IGM and XLK. For additional features, visit the drawdowns tool.
Volatility
IGM vs. XLK - Volatility Comparison
iShares Expanded Tech Sector ETF (IGM) has a higher volatility of 6.97% compared to Technology Select Sector SPDR Fund (XLK) at 6.59%. This indicates that IGM'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.