IYW vs. XLK
Compare and contrast key facts about iShares U.S. Technology ETF (IYW) and Technology Select Sector SPDR Fund (XLK).
IYW and XLK are both exchange-traded funds (ETFs), meaning they are traded on stock exchanges and can be bought and sold throughout the day. IYW is a passively managed fund by iShares that tracks the performance of the Dow Jones U.S. Technology Index. It was launched on May 19, 2000. 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 IYW 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: IYW or XLK.
Key characteristics
| IYW | XLK | |
|---|---|---|
| YTD Return | 6.90% | 6.90% |
| 1Y Return | 43.06% | 38.54% |
| 3Y Return (Ann) | 11.90% | 13.97% |
| 5Y Return (Ann) | 21.95% | 23.01% |
| 10Y Return (Ann) | 20.34% | 20.76% |
| Sharpe Ratio | 2.31 | 2.33 |
| Daily Std Dev | 18.50% | 17.67% |
| Max Drawdown | -81.89% | -82.05% |
| Current Drawdown | -3.99% | -2.49% |
Correlation
The correlation between IYW and XLK is 0.96, 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
IYW vs. XLK - Performance Comparison
As of year-to-date, both investments have demonstrated similar returns, with IYW at 6.90% and XLK at 6.90%. Both investments have delivered pretty close results over the past 10 years, with IYW having a 20.34% annualized return and XLK not far ahead at 20.76%. The chart below displays the growth of a $10,000 investment in both assets, with all prices adjusted for splits and dividends.
IYW vs. XLK - Expense Ratio Comparison
Risk-Adjusted Performance
IYW vs. XLK - Risk-Adjusted Performance Comparison
This table presents a comparison of risk-adjusted performance metrics for iShares U.S. Technology ETF (IYW) 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
IYW vs. XLK - Dividend Comparison
IYW's dividend yield for the trailing twelve months is around 0.36%, less than XLK's 0.72% yield.
| TTM | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 | 2014 | 2013 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
IYW iShares U.S. Technology ETF | 0.36% | 0.40% | 0.50% | 0.31% | 0.56% | 0.72% | 0.91% | 0.82% | 1.13% | 1.12% | 1.13% | 1.06% |
XLK Technology Select Sector SPDR Fund | 0.72% | 0.76% | 1.04% | 0.65% | 0.92% | 1.16% | 1.60% | 1.37% | 1.74% | 1.79% | 1.75% | 1.70% |
Drawdowns
IYW vs. XLK - Drawdown Comparison
The maximum IYW drawdown since its inception was -81.89%, roughly equal to the maximum XLK drawdown of -82.05%. The drawdown chart below compares losses from any high point along the way for IYW and XLK
Volatility
IYW vs. XLK - Volatility Comparison
iShares U.S. Technology ETF (IYW) has a higher volatility of 4.96% compared to Technology Select Sector SPDR Fund (XLK) at 4.37%. This indicates that IYW'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.