SOXQ vs. XLK

Last updated Jun 4, 2026

SOXQ (Invesco PHLX Semiconductor ETF) and XLK (State Street Technology Select Sector SPDR ETF) are both exchange-traded funds - SOXQ is a Semiconductors fund tracking the PHLX Semiconductor Sector 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 3 years, SOXQ returned 59.40%/yr vs 33.90%/yr for XLK. Their correlation of 0.88 suggests significant overlap in exposure. SOXQ charges 0.19%/yr vs 0.08%/yr for XLK.

Performance

SOXQ vs. XLK - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in Invesco PHLX Semiconductor ETF (SOXQ) 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, SOXQ achieves a 96.72% return, which is significantly higher than XLK's 36.47% return.

SOXQ

• 1D: 1.42%
• 1M: 32.12%
• YTD: 96.72%
• 6M: 91.61%
• 1Y: 181.76%
• 3Y*: 59.40%
• 5Y*: —
• 10Y*: —

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)

SOXQ vs. XLK - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021
SOXQ Invesco PHLX Semiconductor ETF	96.72%	43.11%	20.16%	66.74%	-35.59%	24.82%
XLK State Street Technology Select Sector SPDR ETF	36.47%	24.61%	21.63%	56.02%	-27.73%	23.14%

Correlation

The correlation between SOXQ and XLK is 0.83, indicating a strong positive relationship between their price movements. Combining them offers limited diversification - they tend to fall together during downturns.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	0.83
Correlation (3Y) Calculated over the trailing 3-year period	0.87
Correlation (All Time) Calculated using the full available price history since Jun 14, 2021	0.88

The correlation between SOXQ and XLK has been stable across timeframes, ranging from 0.83 to 0.88 - a consistent structural relationship.

SOXQ vs. XLK - Sectors Allocation Comparison

Sectors	SOXQ	XLK
Technology	100.0%	99.7%
Financial Services	0.0%	-
Basic Materials	-	-
Communication Services	-	-
Consumer Cyclical	-	-
Consumer Defensive	-	-
Energy	-	0.2%
Healthcare	-	-
Industrials	-	0.1%
Real Estate	-	-
Utilities	-	-

Return for Risk

SOXQ vs. XLK — Risk / Return Rank

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

SOXQ

SOXQ Risk / Return Rank: 96
SOXQ Sharpe Ratio Rank: 98
SOXQ Sortino Ratio Rank: 95
SOXQ Omega Ratio Rank: 95
SOXQ Calmar Ratio Rank: 97
SOXQ Martin Ratio Rank: 97

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.

SOXQ vs. XLK - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Invesco PHLX Semiconductor ETF (SOXQ) 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.

	SOXQ	XLK	Difference
Sharpe ratio Return per unit of total volatility	5.43	3.24	+2.19
Sortino ratio Return per unit of downside risk	5.22	3.92	+1.29
Omega ratio Gain probability vs. loss probability	1.72	1.52	+0.21
Calmar ratio Return relative to maximum drawdown	11.73	4.22	+7.51
Martin ratio Return relative to average drawdown	45.01	14.16	+30.85
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month.

SOXQ vs. XLK - Sharpe Ratio Comparison

The current SOXQ Sharpe Ratio is 5.43, which is higher than the XLK Sharpe Ratio of 3.24. The chart below compares the historical Sharpe Ratios of SOXQ 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

	SOXQ	XLK	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	5.43	3.24	+2.19
Sharpe Ratio (5Y) Calculated over the trailing 5-year period	—	0.96	—
Sharpe Ratio (10Y) Calculated over the trailing 10-year period	—	1.06	—
Sharpe Ratio (All Time) Calculated using the full available price history	0.98	0.42	+0.56

Drawdowns

SOXQ vs. XLK - Drawdown Comparison

The maximum SOXQ drawdown since its inception was -46.01%, smaller than the maximum XLK drawdown of -82.05%. Use the drawdown chart below to compare losses from any high point for SOXQ and XLK.

Drawdown Indicators

	SOXQ	XLK	Difference
Max Drawdown Largest peak-to-trough decline	-46.01%	-82.05%	+36.04%
Max Drawdown (1Y) Largest decline over 1 year	-15.59%	-15.92%	+0.33%
Max Drawdown (3Y) Largest decline over 3 years	-39.36%	-25.66%	-13.70%
Max Drawdown (5Y) Largest decline over 5 years	—	-33.56%	—
Max Drawdown (10Y) Largest decline over 10 years	—	-33.56%	—
Current Drawdown Current decline from peak	0.00%	-1.00%	+1.00%
Average Drawdown Average peak-to-trough decline	-12.96%	-34.96%	+22.00%
Ulcer Index Depth and duration of drawdowns from previous peaks	4.06%	4.74%	-0.68%

Volatility

SOXQ vs. XLK - Volatility Comparison

Invesco PHLX Semiconductor ETF (SOXQ) has a higher volatility of 13.44% compared to State Street Technology Select Sector SPDR ETF (XLK) at 6.98%. This indicates that SOXQ'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.

Volatility by Period

	SOXQ	XLK	Difference
Volatility (1M) Calculated over the trailing 1-month period	13.44%	6.98%	+6.46%
Volatility (6M) Calculated over the trailing 6-month period	26.70%	16.68%	+10.02%
Volatility (1Y) Calculated over the trailing 1-year period	33.78%	20.82%	+12.96%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	36.38%	24.90%	+11.48%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	36.38%	24.49%	+11.89%

SOXQ vs. XLK - Expense Ratio Comparison

SOXQ has a 0.19% expense ratio, which is higher than XLK's 0.08% expense ratio. However, both funds are considered low-cost compared to the broader market, where average expense ratios usually range from 0.3% to 0.9%.

Dividends

SOXQ vs. XLK - Dividend Comparison

SOXQ's dividend yield for the trailing twelve months is around 0.26%, less than XLK's 0.39% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
SOXQ Invesco PHLX Semiconductor ETF	0.26%	0.50%	0.68%	0.87%	1.36%	0.72%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%
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 SOXQ and XLK in my portfolio?

SOXQ and XLK have a correlation of 0.83, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, SOXQ or XLK?

SOXQ has higher volatility (13.44%) compared to XLK (6.98%). In terms of maximum drawdown, SOXQ dropped -46.01% vs XLK's -82.05%.

Which ETF is better, SOXQ or XLK?

On 3-year performance, SOXQ leads with 59.40% vs 33.90% for XLK. On fees, XLK is cheaper at 0.08% per year. On volatility, XLK has been the lower-risk option at 6.98%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, SOXQ or XLK?

Over the 3-year period, SOXQ has performed better with a 59.40% return vs 33.90%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, SOXQ or XLK?

XLK is cheaper with a 0.08% expense ratio, compared with 0.19% for SOXQ.

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

XLK has the higher dividend yield at 0.39%, compared with 0.26% for SOXQ.

What is the main difference between SOXQ and XLK?

SOXQ is categorized as Semiconductors, while XLK is Technology Equities. SOXQ tracks PHLX Semiconductor Sector 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: 0.19% for SOXQ and 0.08% for XLK.

Which has better risk-adjusted returns?

SOXQ currently has the higher Sharpe Ratio (5.43 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.