SPDN vs. XLK
SPDN (Direxion Daily S&P 500 Bear 1x Shares) and XLK (State Street Technology Select Sector SPDR ETF) are both exchange-traded funds - SPDN is a Inverse Equities fund tracking the S&P 500 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, SPDN returned -12.53%/yr vs 25.19%/yr for XLK. At a correlation of -0.88, they often move in opposite directions. SPDN charges 0.50%/yr vs 0.08%/yr for XLK.
Performance
SPDN vs. XLK - Performance Comparison
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Returns By Period
In the year-to-date period, SPDN achieves a -6.10% return, which is significantly lower than XLK's 28.52% return. Over the past 10 years, SPDN has underperformed XLK with an annualized return of -12.53%, while XLK has yielded a comparatively higher 25.19% annualized return.
SPDN
- 1D
- -0.45%
- 1M
- 0.69%
- YTD
- -6.10%
- 6M
- -6.14%
- 1Y
- -14.45%
- 3Y*
- -11.73%
- 5Y*
- -8.47%
- 10Y*
- -12.53%
XLK
- 1D
- 0.87%
- 1M
- 4.50%
- YTD
- 28.52%
- 6M
- 28.96%
- 1Y
- 53.24%
- 3Y*
- 30.28%
- 5Y*
- 22.02%
- 10Y*
- 25.19%
SPDN vs. XLK - Yearly Performance Comparison
| 2026 (YTD) | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | |
|---|---|---|---|---|---|---|---|---|---|---|
SPDN Direxion Daily S&P 500 Bear 1x Shares | -6.10% | -11.09% | -12.88% | -15.04% | 18.63% | -23.72% | -24.56% | -21.94% | 5.41% | -17.16% |
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 SPDN and XLK is -0.85, meaning they tend to move in opposite directions. This is especially valuable for risk management - when one declines, the other has historically tended to hold steady or rise.
| Correlation | |
|---|---|
Correlation (1Y) Calculated over the trailing 1-year period | -0.85 |
Correlation (3Y) Calculated over the trailing 3-year period | -0.88 |
Correlation (5Y) Calculated over the trailing 5-year period | -0.90 |
Correlation (10Y) Calculated over the trailing 10-year period | -0.88 |
Correlation (All Time) Calculated using the full available price history since Jun 8, 2016 | -0.88 |
The correlation between SPDN and XLK has been stable across timeframes, ranging from -0.90 to -0.85 - a consistent structural relationship.
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Return for Risk
SPDN vs. XLK — Risk / Return Rank
SPDN
XLK
SPDN vs. XLK - Risk-Adjusted Trends Comparison
This table presents a comparison of risk-adjusted performance metrics for Direxion Daily S&P 500 Bear 1x Shares (SPDN) 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.
| SPDN | XLK | Difference | |
|---|---|---|---|
| Sharpe ratioReturn per unit of total volatility | -3.53 | ||
| Sortino ratioReturn per unit of downside risk | -4.58 | ||
| Omega ratioGain probability vs. loss probability | 0.82 | 1.39 | -0.57 |
| Calmar ratioReturn relative to maximum drawdown | -0.82 | 3.36 | -4.18 |
| Martin ratioReturn relative to average drawdown | -1.46 | 10.85 | -12.31 |
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Drawdowns
SPDN vs. XLK - Drawdown Comparison
The maximum SPDN drawdown since its inception was -75.31%, smaller than the maximum XLK drawdown of -82.05%. Use the drawdown chart below to compare losses from any high point for SPDN and XLK.
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Drawdown Indicators
| SPDN | XLK | Difference | |
|---|---|---|---|
Max DrawdownLargest peak-to-trough decline | -75.31% | -82.05% | +6.74% |
Max Drawdown (1Y)Largest decline over 1 year | -17.73% | -15.92% | -1.81% |
Max Drawdown (3Y)Largest decline over 3 years | -38.24% | -25.66% | -12.58% |
Max Drawdown (5Y)Largest decline over 5 years | -43.85% | -33.56% | -10.29% |
Max Drawdown (10Y)Largest decline over 10 years | -75.31% | -33.56% | -41.75% |
Current DrawdownCurrent decline from peak | -74.71% | -6.77% | -67.94% |
Average DrawdownAverage peak-to-trough decline | -48.59% | -34.93% | -13.66% |
Ulcer IndexDepth and duration of drawdowns from previous peaks | 9.89% | 4.92% | +4.97% |
Volatility
SPDN vs. XLK - Volatility Comparison
The current volatility for Direxion Daily S&P 500 Bear 1x Shares (SPDN) is 4.18%, while State Street Technology Select Sector SPDR ETF (XLK) has a volatility of 10.86%. This indicates that SPDN 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.
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Volatility by Period
| SPDN | XLK | Difference | |
|---|---|---|---|
Volatility (1M)Calculated over the trailing 1-month period | 4.18% | 10.86% | -6.68% |
Volatility (6M)Calculated over the trailing 6-month period | 9.71% | 18.92% | -9.21% |
Volatility (1Y)Calculated over the trailing 1-year period | 12.52% | 22.55% | -10.03% |
Volatility (5Y)Calculated over the trailing 5-year period, annualized | 16.92% | 25.18% | -8.26% |
Volatility (10Y)Calculated over the trailing 10-year period, annualized | 18.05% | 24.64% | -6.59% |
SPDN vs. XLK - Expense Ratio Comparison
SPDN has a 0.50% expense ratio, which is higher than XLK's 0.08% expense ratio.
Dividends
SPDN vs. XLK - Dividend Comparison
SPDN's dividend yield for the trailing twelve months is around 4.02%, more than XLK's 0.41% yield.
| Position | TTM | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
SPDN Direxion Daily S&P 500 Bear 1x Shares | 4.02% | 4.06% | 5.32% | 5.84% | 0.96% | 0.00% | 0.10% | 1.89% | 1.24% | 0.42% | 0.00% | 0.00% |
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
SPDN and XLK have a correlation of -0.85, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.
XLK has higher volatility (10.86%) compared to SPDN (4.18%). In terms of maximum drawdown, SPDN dropped -75.31% vs XLK's -82.05%.
On 10-year performance, XLK leads with 25.19% vs -12.53% for SPDN. On fees, XLK is cheaper at 0.08% per year. On volatility, SPDN has been the lower-risk option at 4.18%. 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 25.19% return vs -12.53%. 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 0.50% for SPDN.
SPDN has the higher dividend yield at 4.02%, compared with 0.41% for XLK.
SPDN is categorized as Inverse Equities, while XLK is Technology Equities. SPDN tracks S&P 500 Index, while XLK tracks S&P Technology Select Sector Daily Capped 35/20 Index. They also come from different issuers: Direxion and State Street. Their fees differ too: 0.50% for SPDN and 0.08% for XLK.
XLK currently has the higher Sharpe Ratio (2.37 vs -1.16), 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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