RYDAX vs. XLK

Last updated Jun 23, 2026

RYDAX (Rydex Dow Jones Industrial Average Fund) and XLK (State Street Technology Select Sector SPDR ETF) are both funds - RYDAX is a Large Cap Value Equities fund managed by Rydex Funds, while XLK is a Technology Equities fund tracking the S&P Technology Select Sector Daily Capped 35/20 Index. Over the past 10 years, RYDAX returned 11.64%/yr vs 26.01%/yr for XLK. A 0.72 correlation means they provide meaningful diversification when combined. RYDAX charges 1.58%/yr vs 0.08%/yr for XLK.

Performance

RYDAX vs. XLK - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in Rydex Dow Jones Industrial Average Fund (RYDAX) 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, RYDAX achieves a 7.34% return, which is significantly lower than XLK's 33.79% return. Over the past 10 years, RYDAX has underperformed XLK with an annualized return of 11.64%, while XLK has yielded a comparatively higher 26.01% annualized return.

RYDAX

• 1D: 0.12%
• 1M: 2.04%
• YTD: 7.34%
• 6M: 6.64%
• 1Y: 22.21%
• 3Y*: 14.74%
• 5Y*: 9.32%
• 10Y*: 11.64%

XLK

• 1D: 0.49%
• 1M: 6.65%
• YTD: 33.79%
• 6M: 32.69%
• 1Y: 60.87%
• 3Y*: 32.46%
• 5Y*: 22.53%
• 10Y*: 26.01%

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

RYDAX vs. XLK - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
RYDAX Rydex Dow Jones Industrial Average Fund	7.34%	12.98%	13.10%	14.36%	-8.88%	19.11%	7.47%	23.13%	-5.14%	26.19%
XLK State Street Technology Select Sector SPDR ETF	33.79%	24.61%	21.63%	56.02%	-27.73%	34.74%	43.62%	49.86%	-1.68%	34.26%

Correlation

The correlation between RYDAX and XLK is 0.55, 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	0.55
Correlation (3Y) Calculated over the trailing 3-year period	0.59
Correlation (5Y) Calculated over the trailing 5-year period	0.69
Correlation (10Y) Calculated over the trailing 10-year period	0.71
Correlation (All Time) Calculated using the full available price history since Jan 4, 2016	0.72

The correlation between RYDAX and XLK shifts across timeframes, from 0.55 (1 year) to 0.72 (all time), reflecting how their relationship changes across market environments.

Return for Risk

RYDAX vs. XLK — Risk / Return Rank

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

RYDAX

RYDAX Risk / Return Rank: 42
RYDAX Sharpe Ratio Rank: 44
RYDAX Sortino Ratio Rank: 46
RYDAX Omega Ratio Rank: 40
RYDAX Calmar Ratio Rank: 39
RYDAX Martin Ratio Rank: 42

XLK

XLK Risk / Return Rank: 77
XLK Sharpe Ratio Rank: 86
XLK Sortino Ratio Rank: 75
XLK Omega Ratio Rank: 77
XLK Calmar Ratio Rank: 78
XLK Martin Ratio Rank: 69

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.

RYDAX vs. XLK - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Rydex Dow Jones Industrial Average Fund (RYDAX) 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.

	RYDAX	XLK	Difference
Sharpe ratio: Return per unit of total volatility	1.80	2.65	-0.85
Sortino ratio: Return per unit of downside risk	2.63	3.20	-0.58
Omega ratio: Gain probability vs. loss probability	1.32	1.43	-0.12
Calmar ratio: Return relative to maximum drawdown	2.27	3.84	-1.57
Martin ratio: Return relative to average drawdown	8.56	12.30	-3.74

RYDAX vs. XLK - Sharpe Ratio Comparison

The current RYDAX Sharpe Ratio is 1.80, which is lower than the XLK Sharpe Ratio of 2.65. The chart below compares the historical Sharpe Ratios of RYDAX 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

RYDAX vs. XLK - Drawdown Comparison

The maximum RYDAX drawdown since its inception was -37.34%, smaller than the maximum XLK drawdown of -82.05%. Use the drawdown chart below to compare losses from any high point for RYDAX and XLK.

Drawdown Indicators

	RYDAX	XLK	Difference
Max Drawdown Largest peak-to-trough decline	-37.34%	-82.05%	+44.71%
Max Drawdown (1Y) Largest decline over 1 year	-9.86%	-15.92%	+6.06%
Max Drawdown (3Y) Largest decline over 3 years	-16.50%	-25.66%	+9.16%
Max Drawdown (5Y) Largest decline over 5 years	-22.12%	-33.56%	+11.44%
Max Drawdown (10Y) Largest decline over 10 years	-37.34%	-33.56%	-3.78%
Current Drawdown Current decline from peak	-0.86%	-2.94%	+2.08%
Average Drawdown Average peak-to-trough decline	-4.33%	-34.90%	+30.57%
Ulcer Index Depth and duration of drawdowns from previous peaks	2.61%	4.96%	-2.35%

Volatility

RYDAX vs. XLK - Volatility Comparison

The current volatility for Rydex Dow Jones Industrial Average Fund (RYDAX) is 4.40%, while State Street Technology Select Sector SPDR ETF (XLK) has a volatility of 11.64%. This indicates that RYDAX 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

	RYDAX	XLK	Difference
Volatility (1M) Calculated over the trailing 1-month period	4.40%	11.64%	-7.24%
Volatility (6M) Calculated over the trailing 6-month period	9.83%	19.23%	-9.40%
Volatility (1Y) Calculated over the trailing 1-year period	12.46%	23.12%	-10.66%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	14.89%	25.30%	-10.41%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	17.64%	24.71%	-7.07%

RYDAX vs. XLK - Expense Ratio Comparison

RYDAX has a 1.58% expense ratio, which is higher than XLK's 0.08% expense ratio.

Dividends

RYDAX vs. XLK - Dividend Comparison

RYDAX's dividend yield for the trailing twelve months is around 0.35%, less than XLK's 0.52% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
RYDAX Rydex Dow Jones Industrial Average Fund	0.35%	0.38%	1.73%	0.75%	3.17%	1.22%	4.87%	4.02%	1.25%	3.70%	0.56%	0.00%
XLK State Street Technology Select Sector SPDR ETF	0.52%	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 RYDAX and XLK in my portfolio?

RYDAX and XLK have a correlation of 0.55, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, RYDAX or XLK?

XLK has higher volatility (11.64%) compared to RYDAX (4.40%). In terms of maximum drawdown, RYDAX dropped -37.34% vs XLK's -82.05%.

Which has better risk-adjusted returns?

XLK currently has the higher Sharpe Ratio (2.65 vs 1.80), 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.