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IYW vs. XLK
Performance
Return for Risk
Drawdowns
Volatility
Dividends

IYW vs. XLK

Last updated Jun 3, 2026

IYW (iShares U.S. Technology ETF) and XLK (State Street Technology Select Sector SPDR ETF) are both Technology Equities funds - IYW tracks the Russell 1000 Technology RIC 22.5/45 Capped Index while XLK tracks the S&P Technology Select Sector Daily Capped 35/20 Index. Both are passively managed. Over the past 10 years, IYW returned 26.22%/yr vs 25.97%/yr for XLK. With a 0.96 correlation, they move nearly in lockstep. IYW charges 0.38%/yr vs 0.08%/yr for XLK.

Performance

IYW vs. XLK - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in iShares U.S. Technology ETF (IYW) and State Street Technology Select Sector SPDR ETF (XLK). The values are adjusted to include any dividend payments, if applicable.

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Returns By Period

In the year-to-date period, IYW achieves a 30.23% return, which is significantly lower than XLK's 37.85% return. Both investments have delivered pretty close results over the past 10 years, with IYW having a 26.22% annualized return and XLK not far behind at 25.97%.

IYW

1D
0.76%
1M
17.61%
YTD
30.23%
6M
29.45%
1Y
63.02%
3Y*
35.66%
5Y*
23.59%
10Y*
26.22%

XLK

1D
1.25%
1M
22.45%
YTD
37.85%
6M
37.41%
1Y
71.15%
3Y*
34.35%
5Y*
24.55%
10Y*
25.97%
*Multi-year figures are annualized to reflect compound growth (CAGR)

IYW vs. XLK - Yearly Performance Comparison

2026 (YTD)202520242023202220212020201920182017
IYW
iShares U.S. Technology ETF		30.23%25.38%30.25%65.44%-34.83%35.44%47.45%46.64%-0.93%36.60%
XLK
State Street Technology Select Sector SPDR ETF		37.85%24.61%21.63%56.02%-27.73%34.74%43.62%49.86%-1.68%34.26%

Correlation

The correlation between IYW and XLK is 0.98 - these two move nearly in lockstep. At this level, holding both provides almost no diversification benefit. If you already own one, adding the other does little to reduce portfolio risk.

Correlation
Correlation (1Y)
Calculated over the trailing 1-year period

0.98

Correlation (3Y)
Calculated over the trailing 3-year period

0.98

Correlation (5Y)
Calculated over the trailing 5-year period

0.98

Correlation (10Y)
Calculated over the trailing 10-year period

0.98

Correlation (All Time)
Calculated using the full available price history since May 22, 2000

0.96

The correlation between IYW and XLK has been stable across timeframes, ranging from 0.96 to 0.98 - a consistent structural relationship.

Compare stocks, funds, or ETFs

Search for stocks, ETFs, and funds for a quick comparison or use the comparison tool for more options.

iShares U.S. Technology ETF

State Street Technology Select Sector SPDR ETF

Often compared with IYW:
IYW vs. VGTIYW vs. QQQIYW vs. IGMIYW vs. SMHIYW vs. IWFIYW vs. SOXXIYW vs. IETC
Often compared with XLK:
XLK vs. QQQXLK vs. VGTXLK vs. SMHXLK vs. SPYXLK vs. FTECXLK vs. XLEXLK vs. VOO

Return for Risk

IYW vs. XLK — Risk / Return Rank

Compare risk-adjusted metric ranks to identify better-performing investments over the past 12 months.
IYW
IYW Risk / Return Rank: 7979
Overall Rank
IYW Sharpe Ratio Rank: 9090
Sharpe Ratio Rank
IYW Sortino Ratio Rank: 8585
Sortino Ratio Rank
IYW Omega Ratio Rank: 8383
Omega Ratio Rank
IYW Calmar Ratio Rank: 7272
Calmar Ratio Rank
IYW Martin Ratio Rank: 6565
Martin Ratio Rank
XLK
XLK Risk / Return Rank: 8686
Overall Rank
XLK Sharpe Ratio Rank: 9393
Sharpe Ratio Rank
XLK Sortino Ratio Rank: 8989
Sortino Ratio Rank
XLK Omega Ratio Rank: 8787
Omega Ratio Rank
XLK Calmar Ratio Rank: 8484
Calmar Ratio Rank
XLK Martin Ratio Rank: 7878
Martin Ratio Rank
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.

IYW vs. XLK - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for iShares U.S. Technology ETF (IYW) 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.

IYWXLKDifference

Sharpe ratio

Return per unit of total volatility

3.16

3.44

-0.28

Sortino ratio

Return per unit of downside risk

3.87

4.12

-0.25

Omega ratio

Gain probability vs. loss probability

1.51

1.55

-0.04

Calmar ratio

Return relative to maximum drawdown

3.62

4.56

-0.94

Martin ratio

Return relative to average drawdown

11.88

15.32

-3.44

Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month.

IYW vs. XLK - Sharpe Ratio Comparison

The current IYW Sharpe Ratio is 3.16, which is comparable to the XLK Sharpe Ratio of 3.44. The chart below compares the historical Sharpe Ratios of IYW 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.

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Sharpe Ratios by Period

IYWXLKDifference

Sharpe Ratio (1Y)

Calculated over the trailing 1-year period

3.16

3.44

-0.28

Sharpe Ratio (5Y)

Calculated over the trailing 5-year period

0.92

0.99

-0.07

Sharpe Ratio (10Y)

Calculated over the trailing 10-year period

1.05

1.06

-0.02

Sharpe Ratio (All Time)

Calculated using the full available price history

0.36

0.42

-0.06

Drawdowns

IYW vs. XLK - Drawdown Comparison

The maximum IYW drawdown since its inception was -81.90%, roughly equal to the maximum XLK drawdown of -82.05%. Use the drawdown chart below to compare losses from any high point for IYW and XLK.

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Drawdown Indicators

IYWXLKDifference

Max Drawdown

Largest peak-to-trough decline

-81.90%

-82.05%

+0.15%

Max Drawdown (1Y)

Largest decline over 1 year

-17.81%

-15.92%

-1.89%

Max Drawdown (3Y)

Largest decline over 3 years

-26.47%

-25.66%

-0.81%

Max Drawdown (5Y)

Largest decline over 5 years

-39.44%

-33.56%

-5.88%

Max Drawdown (10Y)

Largest decline over 10 years

-39.44%

-33.56%

-5.88%

Current Drawdown

Current decline from peak

0.00%

0.00%

0.00%

Average Drawdown

Average peak-to-trough decline

-34.66%

-34.96%

+0.30%

Ulcer Index

Depth and duration of drawdowns from previous peaks

5.43%

4.74%

+0.69%

Volatility

IYW vs. XLK - Volatility Comparison

The current volatility for iShares U.S. Technology ETF (IYW) is 6.11%, while State Street Technology Select Sector SPDR ETF (XLK) has a volatility of 6.74%. This indicates that IYW 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.

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Volatility by Period

IYWXLKDifference

Volatility (1M)

Calculated over the trailing 1-month period

6.11%

6.74%

-0.63%

Volatility (6M)

Calculated over the trailing 6-month period

15.81%

16.64%

-0.83%

Volatility (1Y)

Calculated over the trailing 1-year period

20.07%

20.80%

-0.73%

Volatility (5Y)

Calculated over the trailing 5-year period, annualized

25.87%

24.90%

+0.97%

Volatility (10Y)

Calculated over the trailing 10-year period, annualized

25.10%

24.49%

+0.61%

IYW vs. XLK - Expense Ratio Comparison

IYW has a 0.38% expense ratio, which is higher than XLK's 0.08% expense ratio.

Dividends

IYW vs. XLK - Dividend Comparison

IYW's dividend yield for the trailing twelve months is around 0.10%, less than XLK's 0.39% yield.

PositionTTM20252024202320222021202020192018201720162015
IYW
iShares U.S. Technology ETF		0.10%0.14%0.21%0.34%0.50%0.31%0.56%0.72%0.92%0.82%1.14%1.12%
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

With a correlation of 0.98, IYW and XLK move almost identically. Holding both adds very little diversification - you're essentially doubling your position in the same market segment. Choosing one is usually more capital-efficient.

XLK has higher volatility (6.74%) compared to IYW (6.11%). In terms of maximum drawdown, IYW dropped -81.90% vs XLK's -82.05%.

On 10-year performance, IYW leads with 26.22% vs 25.97% for XLK. On fees, XLK is cheaper at 0.08% per year. On volatility, IYW has been the lower-risk option at 6.11%. The better choice depends on whether you care most about return, fees, risk, or income.

Over the 10-year period, IYW has performed better with a 26.22% return vs 25.97%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

XLK is cheaper with a 0.08% expense ratio, compared with 0.38% for IYW.

XLK has the higher dividend yield at 0.39%, compared with 0.10% for IYW.

IYW tracks Russell 1000 Technology RIC 22.5/45 Capped 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: 0.38% for IYW and 0.08% for XLK.

XLK currently has the higher Sharpe Ratio (3.44 vs 3.16), 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.

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