IPO vs. XLK

Last updated Jun 23, 2026

IPO (Renaissance IPO ETF) and XLK (State Street Technology Select Sector SPDR ETF) are both exchange-traded funds - IPO is a Mid Cap Growth Equities fund tracking the Renaissance IPO 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, IPO returned 12.40%/yr vs 26.01%/yr for XLK. A 0.69 correlation means they provide meaningful diversification when combined. IPO charges 0.60%/yr vs 0.08%/yr for XLK.

Performance

IPO vs. XLK - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in Renaissance IPO ETF (IPO) 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, IPO achieves a 29.28% return, which is significantly lower than XLK's 33.79% return. Over the past 10 years, IPO has underperformed XLK with an annualized return of 12.40%, while XLK has yielded a comparatively higher 26.01% annualized return.

IPO

• 1D: -1.01%
• 1M: 11.14%
• YTD: 29.28%
• 6M: 23.90%
• 1Y: 36.21%
• 3Y*: 24.13%
• 5Y*: -1.92%
• 10Y*: 12.40%

XLK

• 1D: 0.49%
• 1M: 6.65%
• YTD: 33.79%
• 6M: 32.69%
• 1Y: 60.87%
• 3Y*: 32.46%
• 5Y*: 22.53%
• 10Y*: 26.01%

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

IPO vs. XLK - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
IPO Renaissance IPO ETF	29.28%	5.45%	15.68%	52.55%	-57.26%	-10.31%	107.88%	34.11%	-17.24%	37.16%
XLK State Street Technology Select Sector SPDR ETF	33.79%	24.61%	21.63%	56.02%	-27.73%	34.74%	43.62%	49.86%	-1.68%	34.26%

Correlation

The correlation between IPO and XLK is 0.73, 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	0.73
Correlation (3Y) Calculated over the trailing 3-year period	0.72
Correlation (5Y) Calculated over the trailing 5-year period	0.73
Correlation (10Y) Calculated over the trailing 10-year period	0.70
Correlation (All Time) Calculated using the full available price history since Oct 16, 2013	0.69

The correlation between IPO and XLK has been stable across timeframes, ranging from 0.69 to 0.73 - a consistent structural relationship.

IPO vs. XLK - Sectors Allocation Comparison

Sectors	IPO	XLK
Technology	46.6%	99.7%
Consumer Cyclical	12.2%	-
Healthcare	8.9%	-
Industrials	8.8%	0.1%
Consumer Defensive	7.8%	-
Communication Services	6.7%	-
Financial Services	4.4%	-
Real Estate	3.5%	-
Energy	0.9%	0.2%
Utilities	0.2%	-
Basic Materials	-	-

Return for Risk

IPO vs. XLK — Risk / Return Rank

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

IPO

IPO Risk / Return Rank: 31
IPO Sharpe Ratio Rank: 35
IPO Sortino Ratio Rank: 34
IPO Omega Ratio Rank: 31
IPO Calmar Ratio Rank: 29
IPO Martin Ratio Rank: 25

XLK

XLK Risk / Return Rank: 77
XLK Sharpe Ratio Rank: 86
XLK Sortino Ratio Rank: 75
XLK Omega Ratio Rank: 77
XLK Calmar Ratio Rank: 78
XLK Martin Ratio Rank: 69

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.

IPO vs. XLK - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Renaissance IPO ETF (IPO) 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.

	IPO	XLK	Difference
Sharpe ratio: Return per unit of total volatility	1.21	2.65	-1.44
Sortino ratio: Return per unit of downside risk	1.75	3.20	-1.46
Omega ratio: Gain probability vs. loss probability	1.21	1.43	-0.23
Calmar ratio: Return relative to maximum drawdown	1.39	3.84	-2.46
Martin ratio: Return relative to average drawdown	3.10	12.30	-9.21

IPO vs. XLK - Sharpe Ratio Comparison

The current IPO Sharpe Ratio is 1.21, which is lower than the XLK Sharpe Ratio of 2.65. The chart below compares the historical Sharpe Ratios of IPO 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

IPO vs. XLK - Drawdown Comparison

The maximum IPO drawdown since its inception was -68.76%, smaller than the maximum XLK drawdown of -82.05%. Use the drawdown chart below to compare losses from any high point for IPO and XLK.

Drawdown Indicators

	IPO	XLK	Difference
Max Drawdown Largest peak-to-trough decline	-68.76%	-82.05%	+13.29%
Max Drawdown (1Y) Largest decline over 1 year	-26.24%	-15.92%	-10.32%
Max Drawdown (3Y) Largest decline over 3 years	-32.04%	-25.66%	-6.38%
Max Drawdown (5Y) Largest decline over 5 years	-66.02%	-33.56%	-32.46%
Max Drawdown (10Y) Largest decline over 10 years	-68.76%	-33.56%	-35.20%
Current Drawdown Current decline from peak	-21.89%	-2.94%	-18.95%
Average Drawdown Average peak-to-trough decline	-22.93%	-34.90%	+11.97%
Ulcer Index Depth and duration of drawdowns from previous peaks	11.72%	4.96%	+6.76%

Volatility

IPO vs. XLK - Volatility Comparison

The current volatility for Renaissance IPO ETF (IPO) is 10.97%, while State Street Technology Select Sector SPDR ETF (XLK) has a volatility of 11.64%. This indicates that IPO 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

	IPO	XLK	Difference
Volatility (1M) Calculated over the trailing 1-month period	10.97%	11.64%	-0.67%
Volatility (6M) Calculated over the trailing 6-month period	23.55%	19.23%	+4.32%
Volatility (1Y) Calculated over the trailing 1-year period	30.18%	23.12%	+7.06%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	36.06%	25.30%	+10.76%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	31.62%	24.71%	+6.91%

IPO vs. XLK - Expense Ratio Comparison

IPO has a 0.60% expense ratio, which is higher than XLK's 0.08% expense ratio.

Dividends

IPO vs. XLK - Dividend Comparison

IPO's dividend yield for the trailing twelve months is around 0.40%, less than XLK's 0.52% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
IPO Renaissance IPO ETF	0.40%	0.66%	0.12%	0.00%	0.00%	0.00%	0.10%	0.26%	0.49%	0.43%	0.40%	0.11%
XLK State Street Technology Select Sector SPDR ETF	0.52%	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 IPO and XLK in my portfolio?

IPO and XLK have a correlation of 0.73, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, IPO or XLK?

XLK has higher volatility (11.64%) compared to IPO (10.97%). In terms of maximum drawdown, IPO dropped -68.76% vs XLK's -82.05%.

Which ETF is better, IPO or XLK?

On 10-year performance, XLK leads with 26.01% vs 12.40% for IPO. On fees, XLK is cheaper at 0.08% per year. On volatility, IPO has been the lower-risk option at 10.97%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, IPO or XLK?

Over the 10-year period, XLK has performed better with a 26.01% return vs 12.40%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, IPO or XLK?

XLK is cheaper with a 0.08% expense ratio, compared with 0.60% for IPO.

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

XLK has the higher dividend yield at 0.52%, compared with 0.40% for IPO.

What is the main difference between IPO and XLK?

IPO is categorized as Mid Cap Growth Equities, while XLK is Technology Equities. IPO tracks Renaissance IPO Index, while XLK tracks S&P Technology Select Sector Daily Capped 35/20 Index. They also come from different issuers: Renaissance Capital and State Street. Their fees differ too: 0.60% for IPO and 0.08% for XLK.

Which has better risk-adjusted returns?

XLK currently has the higher Sharpe Ratio (2.65 vs 1.21), 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.