PXQ vs. XLK
PXQ (Invesco Next Gen Connectivity ETF) and XLK (State Street Technology Select Sector SPDR ETF) are both Technology Equities funds - PXQ tracks the STOXX World AC NexGen Connectivity Index while XLK tracks the S&P Technology Select Sector Daily Capped 35/20 Index. Both are passively managed. Over the past 10 years, PXQ returned 18.83%/yr vs 23.77%/yr for XLK. Their 0.78 correlation means they have sometimes moved together and sometimes differently. PXQ charges 0.40%/yr vs 0.08%/yr for XLK.
Performance
PXQ vs. XLK - Performance Comparison
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Returns By Period
In the year-to-date period, PXQ achieves a 40.12% return, which is significantly higher than XLK's 22.09% return. Over the past 10 years, PXQ has underperformed XLK with an annualized return of 18.83%, while XLK has yielded a comparatively higher 23.77% annualized return.
PXQ
- 1D
- 0.08%
- 1M
- -4.96%
- 6M
- 31.73%
- YTD
- 40.12%
- 1Y
- 63.92%
- 3Y*
- 33.13%
- 5Y*
- 16.31%
- 10Y*
- 18.83%
- ALL TIME*
- 13.22%
XLK
- 1D
- -0.22%
- 1M
- -2.90%
- 6M
- 22.17%
- YTD
- 22.09%
- 1Y
- 37.14%
- 3Y*
- 26.04%
- 5Y*
- 18.87%
- 10Y*
- 23.77%
- ALL TIME*
- 10.21%
Liquidity Comparison
| Position | Avg. Volume Value (2W) | Avg. Volume Value (1M) | Avg. Volume Value (3M) |
|---|---|---|---|
| $741.37K | $822.66K | $837.91K | |
| $1.61B | $1.67B | $2.22B |
PXQ vs. XLK - Yearly Performance Comparison
| 2026 (YTD) | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | |
|---|---|---|---|---|---|---|---|---|---|---|
PXQ Invesco Next Gen Connectivity ETF | 40.12% | 28.65% | 19.41% | 27.39% | -29.54% | 21.83% | 39.14% | 26.35% | 5.78% | 15.41% |
XLK State Street Technology Select Sector SPDR ETF | 22.09% | 24.61% | 21.63% | 56.02% | -27.73% | 34.74% | 43.62% | 49.86% | -1.68% | 34.26% |
Correlation
The correlation between PXQ and XLK is 0.90, meaning they have usually moved in the same direction, including during past declines.
| Correlation | |
|---|---|
Correlation (1Y) Focuses on recent behavior, but can change the most. | 0.90 |
Correlation (3Y) Balances recent behavior with more history. | 0.87 |
Correlation (5Y) Shows whether the relationship held over a longer period. | 0.87 |
Correlation (10Y) Provides a long-term view across more market conditions. | 0.82 |
Correlation (All Time) Calculated using the full available price history since Jun 23, 2005 | 0.78 |
The correlation between PXQ and XLK shifts across timeframes, from 0.78 (all time) to 0.90 (1 year), reflecting how their relationship changes across market environments.
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Return for Risk
PXQ vs. XLK — Risk / Return Rank
PXQ
XLK
PXQ vs. XLK - Risk-Adjusted Trends Comparison
This table presents a comparison of risk-adjusted performance metrics for Invesco Next Gen Connectivity ETF (PXQ) 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.
| PXQ | XLK | Difference | |
|---|---|---|---|
| Sharpe ratioReturn per unit of total volatility | +0.92 | ||
| Sortino ratioReturn per unit of downside risk | +0.96 | ||
| Omega ratioGain probability vs. loss probability | 1.38 | 1.23 | +0.15 |
| Calmar ratioReturn relative to maximum drawdown | 3.31 | 2.16 | +1.15 |
| Martin ratioReturn relative to average drawdown | 13.33 | 5.85 | +7.48 |
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Drawdowns
PXQ vs. XLK - Drawdown Comparison
The maximum PXQ drawdown since its inception was -57.18%, smaller than the maximum XLK drawdown of -82.05%. Use the drawdown chart below to compare losses from any high point for PXQ and XLK.
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Drawdown Indicators
| PXQ | XLK | Difference | |
|---|---|---|---|
Max DrawdownLargest peak-to-trough decline | -57.18% | -82.05% | +24.87% |
Max Drawdown (1Y)Largest decline over 1 year | -18.91% | -15.92% | -2.99% |
Max Drawdown (3Y)Largest decline over 3 years | -21.40% | -25.66% | +4.26% |
Max Drawdown (5Y)Largest decline over 5 years | -34.55% | -33.56% | -0.99% |
Max Drawdown (10Y)Largest decline over 10 years | -34.55% | -33.56% | -0.99% |
Current DrawdownCurrent decline from peak | -14.80% | -11.43% | -3.37% |
Average DrawdownAverage peak-to-trough decline | -10.73% | -34.80% | +24.07% |
Ulcer IndexDepth and duration of drawdowns from previous peaks | 4.68% | 5.86% | -1.18% |
Volatility
PXQ vs. XLK - Volatility Comparison
Invesco Next Gen Connectivity ETF (PXQ) has a higher volatility of 11.26% compared to State Street Technology Select Sector SPDR ETF (XLK) at 9.58%. This indicates that PXQ'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.
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Volatility by Period
| PXQ | XLK | Difference | |
|---|---|---|---|
Volatility (1M)Calculated over the trailing 1-month period | 11.26% | 9.58% | +1.68% |
Volatility (6M)Calculated over the trailing 6-month period | 24.68% | 21.81% | +2.87% |
Volatility (1Y)Calculated over the trailing 1-year period | 27.67% | 25.59% | +2.08% |
Volatility (5Y)Calculated over the trailing 5-year period, annualized | 24.48% | 25.75% | -1.27% |
Volatility (10Y)Calculated over the trailing 10-year period, annualized | 23.55% | 24.90% | -1.35% |
PXQ vs. XLK - Expense Ratio Comparison
PXQ has a 0.40% expense ratio, which is higher than XLK's 0.08% expense ratio.
Dividends
PXQ vs. XLK - Dividend Comparison
PXQ's dividend yield for the trailing twelve months is around 0.68%, more than XLK's 0.45% yield.
| Position | TTM | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
PXQ Invesco Next Gen Connectivity ETF | 0.68% | 0.86% | 1.38% | 0.60% | 2.24% | 0.55% | 0.18% | 0.44% | 1.22% | 0.66% | 0.44% | 0.00% |
XLK State Street Technology Select Sector SPDR ETF | 0.45% | 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
PXQ and XLK have a correlation of 0.90, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.
PXQ has higher volatility (11.26%) compared to XLK (9.58%). In terms of maximum drawdown, PXQ dropped -57.18% vs XLK's -82.05%.
On 10-year performance, XLK leads with 23.77% vs 18.83% for PXQ. On fees, XLK is cheaper at 0.08% per year. On volatility, XLK has been the lower-risk option at 9.58%. The better choice depends on whether you care most about return, fees, risk, or income.
Over the 10-year period, XLK has performed better with a 23.77% return vs 18.83%. 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 0.40% for PXQ.
PXQ has the higher dividend yield at 0.68%, compared with 0.45% for XLK.
PXQ tracks STOXX World AC NexGen Connectivity 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: 0.40% for PXQ and 0.08% for XLK.
PXQ currently has the higher Sharpe Ratio (2.27 vs 1.34), 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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