IJR vs. XLK

Last updated Jun 21, 2026

IJR (iShares Core S&P Small-Cap ETF) and XLK (State Street Technology Select Sector SPDR ETF) are both exchange-traded funds - IJR is a Small Cap Blend Equities fund tracking the S&P SmallCap 600 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, IJR returned 11.06%/yr vs 25.67%/yr for XLK. A 0.71 correlation means they provide meaningful diversification when combined. IJR charges 0.06%/yr vs 0.08%/yr for XLK.

Performance

IJR vs. XLK - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in iShares Core S&P Small-Cap ETF (IJR) 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, IJR achieves a 19.71% return, which is significantly lower than XLK's 33.14% return. Over the past 10 years, IJR has underperformed XLK with an annualized return of 11.06%, while XLK has yielded a comparatively higher 25.67% annualized return.

IJR

• 1D: 1.81%
• 1M: 5.41%
• YTD: 19.71%
• 6M: 17.56%
• 1Y: 36.69%
• 3Y*: 15.04%
• 5Y*: 7.27%
• 10Y*: 11.06%

XLK

• 1D: 3.04%
• 1M: 7.19%
• YTD: 33.14%
• 6M: 32.76%
• 1Y: 60.08%
• 3Y*: 31.17%
• 5Y*: 22.86%
• 10Y*: 25.67%

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

IJR vs. XLK - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
IJR iShares Core S&P Small-Cap ETF	19.71%	5.89%	8.63%	16.06%	-16.20%	26.58%	11.28%	22.82%	-8.51%	13.15%
XLK State Street Technology Select Sector SPDR ETF	33.14%	24.61%	21.63%	56.02%	-27.73%	34.74%	43.62%	49.86%	-1.68%	34.26%

Correlation

The correlation between IJR and XLK is 0.53, 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	0.53
Correlation (3Y) Calculated over the trailing 3-year period	0.54
Correlation (5Y) Calculated over the trailing 5-year period	0.63
Correlation (10Y) Calculated over the trailing 10-year period	0.61
Correlation (All Time) Calculated using the full available price history since May 26, 2000	0.71

The correlation between IJR and XLK shifts across timeframes, from 0.53 (1 year) to 0.71 (all time), reflecting how their relationship changes across market environments.

IJR vs. XLK - Sectors Allocation Comparison

Sectors	IJR	XLK
Financial Services	16.0%	-
Industrials	16.0%	0.1%
Technology	15.9%	99.7%
Consumer Cyclical	12.5%	-
Healthcare	11.0%	-
Real Estate	7.5%	-
Energy	6.8%	0.2%
Basic Materials	4.7%	-
Communication Services	3.2%	-
Consumer Defensive	3.2%	-
Utilities	1.9%	-

Return for Risk

IJR vs. XLK — Risk / Return Rank

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

IJR

IJR Risk / Return Rank: 72
IJR Sharpe Ratio Rank: 66
IJR Sortino Ratio Rank: 70
IJR Omega Ratio Rank: 61
IJR Calmar Ratio Rank: 83
IJR Martin Ratio Rank: 78

XLK

XLK Risk / Return Rank: 77
XLK Sharpe Ratio Rank: 85
XLK Sortino Ratio Rank: 75
XLK Omega Ratio Rank: 77
XLK Calmar Ratio Rank: 77
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.

IJR vs. XLK - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for iShares Core S&P Small-Cap ETF (IJR) 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.

	IJR	XLK	Difference
Sharpe ratio: Return per unit of total volatility	2.07	2.59	-0.52
Sortino ratio: Return per unit of downside risk	2.97	3.14	-0.17
Omega ratio: Gain probability vs. loss probability	1.35	1.42	-0.07
Calmar ratio: Return relative to maximum drawdown	4.22	3.75	+0.47
Martin ratio: Return relative to average drawdown	14.18	12.01	+2.17

IJR vs. XLK - Sharpe Ratio Comparison

The current IJR Sharpe Ratio is 2.07, which is comparable to the XLK Sharpe Ratio of 2.59. The chart below compares the historical Sharpe Ratios of IJR 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

IJR vs. XLK - Drawdown Comparison

The maximum IJR drawdown since its inception was -58.15%, smaller than the maximum XLK drawdown of -82.05%. Use the drawdown chart below to compare losses from any high point for IJR and XLK.

Drawdown Indicators

	IJR	XLK	Difference
Max Drawdown Largest peak-to-trough decline	-58.15%	-82.05%	+23.90%
Max Drawdown (1Y) Largest decline over 1 year	-8.68%	-15.92%	+7.24%
Max Drawdown (3Y) Largest decline over 3 years	-28.02%	-25.66%	-2.36%
Max Drawdown (5Y) Largest decline over 5 years	-28.02%	-33.56%	+5.54%
Max Drawdown (10Y) Largest decline over 10 years	-44.36%	-33.56%	-10.80%
Current Drawdown Current decline from peak	-0.13%	-3.42%	+3.29%
Average Drawdown Average peak-to-trough decline	-9.27%	-34.91%	+25.64%
Ulcer Index Depth and duration of drawdowns from previous peaks	2.58%	4.96%	-2.38%

Volatility

IJR vs. XLK - Volatility Comparison

The current volatility for iShares Core S&P Small-Cap ETF (IJR) is 5.21%, while State Street Technology Select Sector SPDR ETF (XLK) has a volatility of 11.79%. This indicates that IJR 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

	IJR	XLK	Difference
Volatility (1M) Calculated over the trailing 1-month period	5.21%	11.79%	-6.58%
Volatility (6M) Calculated over the trailing 6-month period	12.06%	19.39%	-7.33%
Volatility (1Y) Calculated over the trailing 1-year period	17.72%	23.08%	-5.36%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	21.42%	25.30%	-3.88%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	22.93%	24.70%	-1.77%

IJR vs. XLK - Expense Ratio Comparison

IJR has a 0.06% expense ratio, which is lower than XLK's 0.08% expense ratio. Despite the difference, both funds are considered low-cost compared to the broader market, where average expense ratios usually range from 0.3% to 0.9%.

Dividends

IJR vs. XLK - Dividend Comparison

IJR's dividend yield for the trailing twelve months is around 1.15%, more than XLK's 0.40% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
IJR iShares Core S&P Small-Cap ETF	1.15%	1.44%	2.05%	1.31%	1.41%	1.53%	1.11%	1.44%	1.58%	1.20%	1.22%	1.48%
XLK State Street Technology Select Sector SPDR ETF	0.40%	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 IJR and XLK in my portfolio?

IJR and XLK have a correlation of 0.53, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, IJR or XLK?

XLK has higher volatility (11.79%) compared to IJR (5.21%). In terms of maximum drawdown, IJR dropped -58.15% vs XLK's -82.05%.

Which ETF is better, IJR or XLK?

On 10-year performance, XLK leads with 25.67% vs 11.06% for IJR. On fees, IJR is cheaper at 0.06% per year. On volatility, IJR has been the lower-risk option at 5.21%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, IJR or XLK?

Over the 10-year period, XLK has performed better with a 25.67% return vs 11.06%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, IJR or XLK?

IJR is cheaper with a 0.06% expense ratio, compared with 0.08% for XLK.

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

IJR has the higher dividend yield at 1.15%, compared with 0.40% for XLK.

What is the main difference between IJR and XLK?

IJR is categorized as Small Cap Blend Equities, while XLK is Technology Equities. IJR tracks S&P SmallCap 600 Index, 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: 0.06% for IJR and 0.08% for XLK.

Which has better risk-adjusted returns?

XLK currently has the higher Sharpe Ratio (2.59 vs 2.07), 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.