RMT vs. XLK

Last updated Jun 4, 2026

RMT (Royce Micro-Cap Trust, Inc.) is a stock, while XLK (State Street Technology Select Sector SPDR ETF) is Technology Equities fund tracking the S&P Technology Select Sector Daily Capped 35/20 Index. Over the past 10 years, RMT returned 15.46%/yr vs 25.84%/yr for XLK. A 0.55 correlation means they provide meaningful diversification when combined.

Performance

RMT vs. XLK - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in Royce Micro-Cap Trust, Inc. (RMT) and State Street Technology Select Sector SPDR ETF (XLK). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

The year-to-date returns for both stocks are quite close, with RMT having a 37.41% return and XLK slightly lower at 36.47%. Over the past 10 years, RMT has underperformed XLK with an annualized return of 15.46%, while XLK has yielded a comparatively higher 25.84% annualized return.

RMT

• 1D: -0.91%
• 1M: 4.99%
• YTD: 37.41%
• 6M: 39.31%
• 1Y: 72.30%
• 3Y*: 28.32%
• 5Y*: 11.71%
• 10Y*: 15.46%

XLK

• 1D: -1.00%
• 1M: 21.09%
• YTD: 36.47%
• 6M: 35.71%
• 1Y: 66.93%
• 3Y*: 33.90%
• 5Y*: 23.83%
• 10Y*: 25.84%

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

RMT vs. XLK - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
RMT Royce Micro-Cap Trust, Inc.	37.41%	16.10%	13.97%	15.81%	-16.82%	22.56%	27.97%	25.05%	-14.88%	25.27%
XLK State Street Technology Select Sector SPDR ETF	36.47%	24.61%	21.63%	56.02%	-27.73%	34.74%	43.62%	49.86%	-1.68%	34.26%

Correlation

The correlation between RMT and XLK is 0.58, 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	0.58
Correlation (3Y) Calculated over the trailing 3-year period	0.58
Correlation (5Y) Calculated over the trailing 5-year period	0.64
Correlation (10Y) Calculated over the trailing 10-year period	0.61
Correlation (All Time) Calculated using the full available price history since Dec 23, 1998	0.55

The correlation between RMT and XLK has been stable across timeframes, ranging from 0.55 to 0.64 - a consistent structural relationship.

Return for Risk

RMT vs. XLK — Risk / Return Rank

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

RMT

RMT Risk / Return Rank: 96
RMT Sharpe Ratio Rank: 96
RMT Sortino Ratio Rank: 96
RMT Omega Ratio Rank: 95
RMT Calmar Ratio Rank: 94
RMT Martin Ratio Rank: 96

XLK

XLK Risk / Return Rank: 83
XLK Sharpe Ratio Rank: 91
XLK Sortino Ratio Rank: 85
XLK Omega Ratio Rank: 83
XLK Calmar Ratio Rank: 80
XLK Martin Ratio Rank: 73

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.

RMT vs. XLK - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Royce Micro-Cap Trust, Inc. (RMT) 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.

	RMT	XLK	Difference
Sharpe ratio: Return per unit of total volatility	3.66	3.24	+0.43
Sortino ratio: Return per unit of downside risk	4.57	3.92	+0.65
Omega ratio: Gain probability vs. loss probability	1.58	1.52	+0.06
Calmar ratio: Return relative to maximum drawdown	6.40	4.22	+2.17
Martin ratio: Return relative to average drawdown	23.04	14.16	+8.88
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month.

RMT vs. XLK - Sharpe Ratio Comparison

The current RMT Sharpe Ratio is 3.66, which is comparable to the XLK Sharpe Ratio of 3.24. The chart below compares the historical Sharpe Ratios of RMT 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.

Sharpe Ratios by Period

	RMT	XLK	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	3.66	3.24	+0.43
Sharpe Ratio (5Y) Calculated over the trailing 5-year period	0.54	0.96	-0.42
Sharpe Ratio (10Y) Calculated over the trailing 10-year period	0.69	1.06	-0.36
Sharpe Ratio (All Time) Calculated using the full available price history	0.40	0.42	-0.02

Drawdowns

RMT vs. XLK - Drawdown Comparison

The maximum RMT drawdown since its inception was -73.94%, smaller than the maximum XLK drawdown of -82.05%. Use the drawdown chart below to compare losses from any high point for RMT and XLK.

Drawdown Indicators

	RMT	XLK	Difference
Max Drawdown Largest peak-to-trough decline	-73.94%	-82.05%	+8.11%
Max Drawdown (1Y) Largest decline over 1 year	-11.36%	-15.92%	+4.56%
Max Drawdown (3Y) Largest decline over 3 years	-26.41%	-25.66%	-0.75%
Max Drawdown (5Y) Largest decline over 5 years	-30.73%	-33.56%	+2.83%
Max Drawdown (10Y) Largest decline over 10 years	-50.40%	-33.56%	-16.84%
Current Drawdown Current decline from peak	-0.91%	-1.00%	+0.09%
Average Drawdown Average peak-to-trough decline	-14.11%	-34.96%	+20.85%
Ulcer Index Depth and duration of drawdowns from previous peaks	3.15%	4.74%	-1.59%

Volatility

RMT vs. XLK - Volatility Comparison

The current volatility for Royce Micro-Cap Trust, Inc. (RMT) is 5.54%, while State Street Technology Select Sector SPDR ETF (XLK) has a volatility of 6.98%. This indicates that RMT 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

	RMT	XLK	Difference
Volatility (1M) Calculated over the trailing 1-month period	5.54%	6.98%	-1.44%
Volatility (6M) Calculated over the trailing 6-month period	14.47%	16.68%	-2.21%
Volatility (1Y) Calculated over the trailing 1-year period	19.86%	20.82%	-0.96%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	21.65%	24.90%	-3.25%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	22.34%	24.49%	-2.15%

Dividends

RMT vs. XLK - Dividend Comparison

RMT's dividend yield for the trailing twelve months is around 5.60%, more than XLK's 0.39% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
RMT Royce Micro-Cap Trust, Inc.	5.60%	7.57%	7.59%	8.01%	10.94%	7.27%	6.03%	7.96%	10.11%	7.31%	7.84%	17.36%
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

Can I hold both RMT and XLK in my portfolio?

RMT and XLK have a correlation of 0.58, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, RMT or XLK?

XLK has higher volatility (6.98%) compared to RMT (5.54%). In terms of maximum drawdown, RMT dropped -73.94% vs XLK's -82.05%.

Which has better risk-adjusted returns?

RMT currently has the higher Sharpe Ratio (3.66 vs 3.24), 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.