KBWD vs. XLK

Last updated Jun 14, 2026

KBWD (Invesco KBW High Dividend Yield Financial ETF) and XLK (State Street Technology Select Sector SPDR ETF) are both exchange-traded funds - KBWD is a Financials Equities fund tracking the KBW Nasdaq Financial Sector Dividend Yield 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, KBWD returned 5.25%/yr vs 25.19%/yr for XLK. A 0.51 correlation means they provide meaningful diversification when combined. KBWD charges 1.24%/yr vs 0.08%/yr for XLK.

Performance

KBWD vs. XLK - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in Invesco KBW High Dividend Yield Financial ETF (KBWD) 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, KBWD achieves a -3.74% return, which is significantly lower than XLK's 28.52% return. Over the past 10 years, KBWD has underperformed XLK with an annualized return of 5.25%, while XLK has yielded a comparatively higher 25.19% annualized return.

KBWD

• 1D: 0.80%
• 1M: -1.25%
• YTD: -3.74%
• 6M: -4.15%
• 1Y: 3.52%
• 3Y*: 5.00%
• 5Y*: 0.34%
• 10Y*: 5.25%

XLK

• 1D: 0.87%
• 1M: 2.95%
• YTD: 28.52%
• 6M: 28.96%
• 1Y: 55.42%
• 3Y*: 30.28%
• 5Y*: 22.02%
• 10Y*: 25.19%

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

KBWD vs. XLK - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
KBWD Invesco KBW High Dividend Yield Financial ETF	-3.74%	5.59%	4.30%	20.21%	-19.14%	31.89%	-15.58%	20.72%	-8.70%	12.06%
XLK State Street Technology Select Sector SPDR ETF	28.52%	24.61%	21.63%	56.02%	-27.73%	34.74%	43.62%	49.86%	-1.68%	34.26%

Correlation

The correlation between KBWD and XLK is 0.31, which is low. Their price movements are largely independent, making them effective diversification partners.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	0.31
Correlation (3Y) Calculated over the trailing 3-year period	0.38
Correlation (5Y) Calculated over the trailing 5-year period	0.50
Correlation (10Y) Calculated over the trailing 10-year period	0.46
Correlation (All Time) Calculated using the full available price history since Dec 2, 2010	0.51

Over the past year, the correlation between KBWD and XLK has dropped to 0.31 - well below their long-term average of 0.51, suggesting their price drivers have been diverging.

KBWD vs. XLK - Sectors Allocation Comparison

Sectors	KBWD	XLK
Financial Services	60.8%	-
Real Estate	39.2%	-
Basic Materials	-	-
Communication Services	-	-
Consumer Cyclical	-	-
Consumer Defensive	-	-
Energy	-	0.2%
Healthcare	-	-
Industrials	-	0.1%
Technology	-	99.7%
Utilities	-	-

Return for Risk

KBWD vs. XLK — Risk / Return Rank

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

KBWD

KBWD Risk / Return Rank: 11
KBWD Sharpe Ratio Rank: 11
KBWD Sortino Ratio Rank: 11
KBWD Omega Ratio Rank: 11
KBWD Calmar Ratio Rank: 11
KBWD Martin Ratio Rank: 11

XLK

XLK Risk / Return Rank: 76
XLK Sharpe Ratio Rank: 85
XLK Sortino Ratio Rank: 76
XLK Omega Ratio Rank: 78
XLK Calmar Ratio Rank: 75
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.

KBWD vs. XLK - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Invesco KBW High Dividend Yield Financial ETF (KBWD) 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.

	KBWD	XLK	Difference
Sharpe ratio: Return per unit of total volatility	0.13	2.37	-2.25
Sortino ratio: Return per unit of downside risk	0.29	2.92	-2.63
Omega ratio: Gain probability vs. loss probability	1.03	1.39	-0.36
Calmar ratio: Return relative to maximum drawdown	0.13	3.36	-3.23
Martin ratio: Return relative to average drawdown	0.32	10.85	-10.53

KBWD vs. XLK - Sharpe Ratio Comparison

The current KBWD Sharpe Ratio is 0.13, which is lower than the XLK Sharpe Ratio of 2.37. The chart below compares the historical Sharpe Ratios of KBWD 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

KBWD vs. XLK - Drawdown Comparison

The maximum KBWD drawdown since its inception was -58.63%, smaller than the maximum XLK drawdown of -82.05%. Use the drawdown chart below to compare losses from any high point for KBWD and XLK.

Drawdown Indicators

	KBWD	XLK	Difference
Max Drawdown Largest peak-to-trough decline	-58.63%	-82.05%	+23.42%
Max Drawdown (1Y) Largest decline over 1 year	-15.05%	-15.92%	+0.87%
Max Drawdown (3Y) Largest decline over 3 years	-19.65%	-25.66%	+6.01%
Max Drawdown (5Y) Largest decline over 5 years	-30.74%	-33.56%	+2.82%
Max Drawdown (10Y) Largest decline over 10 years	-58.63%	-33.56%	-25.07%
Current Drawdown Current decline from peak	-10.58%	-6.77%	-3.81%
Average Drawdown Average peak-to-trough decline	-7.41%	-34.93%	+27.52%
Ulcer Index Depth and duration of drawdowns from previous peaks	6.10%	4.92%	+1.18%

Volatility

KBWD vs. XLK - Volatility Comparison

The current volatility for Invesco KBW High Dividend Yield Financial ETF (KBWD) is 4.70%, while State Street Technology Select Sector SPDR ETF (XLK) has a volatility of 10.86%. This indicates that KBWD 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

	KBWD	XLK	Difference
Volatility (1M) Calculated over the trailing 1-month period	4.70%	10.86%	-6.16%
Volatility (6M) Calculated over the trailing 6-month period	12.36%	18.92%	-6.56%
Volatility (1Y) Calculated over the trailing 1-year period	15.59%	22.55%	-6.96%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	19.89%	25.18%	-5.29%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	23.25%	24.64%	-1.39%

KBWD vs. XLK - Expense Ratio Comparison

KBWD has a 1.24% expense ratio, which is higher than XLK's 0.08% expense ratio.

Dividends

KBWD vs. XLK - Dividend Comparison

KBWD's dividend yield for the trailing twelve months is around 14.14%, more than XLK's 0.41% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
KBWD Invesco KBW High Dividend Yield Financial ETF	14.14%	12.83%	12.45%	11.45%	11.32%	7.26%	9.68%	8.63%	9.47%	8.77%	8.68%	8.89%
XLK State Street Technology Select Sector SPDR ETF	0.41%	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 KBWD and XLK in my portfolio?

KBWD and XLK have a correlation of 0.31, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, KBWD or XLK?

XLK has higher volatility (10.86%) compared to KBWD (4.70%). In terms of maximum drawdown, KBWD dropped -58.63% vs XLK's -82.05%.

Which ETF is better, KBWD or XLK?

On 10-year performance, XLK leads with 25.19% vs 5.25% for KBWD. On fees, XLK is cheaper at 0.08% per year. On volatility, KBWD has been the lower-risk option at 4.70%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, KBWD or XLK?

Over the 10-year period, XLK has performed better with a 25.19% return vs 5.25%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, KBWD or XLK?

XLK is cheaper with a 0.08% expense ratio, compared with 1.24% for KBWD.

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

KBWD has the higher dividend yield at 14.14%, compared with 0.41% for XLK.

What is the main difference between KBWD and XLK?

KBWD is categorized as Financials Equities, while XLK is Technology Equities. KBWD tracks KBW Nasdaq Financial Sector Dividend Yield Index, while XLK tracks S&P Technology Select Sector Daily Capped 35/20 Index. They also come from different issuers: Invesco and State Street. Their fees differ too: 1.24% for KBWD and 0.08% for XLK.

Which has better risk-adjusted returns?

XLK currently has the higher Sharpe Ratio (2.37 vs 0.13), 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.