SPEU vs. XLK

Last updated Jun 4, 2026

SPEU (SPDR Portfolio Europe ETF) and XLK (State Street Technology Select Sector SPDR ETF) are both exchange-traded funds - SPEU is a Europe Equities fund tracking the STOXX Europe Total Market, 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, SPEU returned 9.17%/yr vs 25.84%/yr for XLK. A 0.63 correlation means they provide meaningful diversification when combined. SPEU charges 0.09%/yr vs 0.08%/yr for XLK.

Performance

SPEU vs. XLK - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in SPDR Portfolio Europe ETF (SPEU) 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, SPEU achieves a 5.34% return, which is significantly lower than XLK's 36.47% return. Over the past 10 years, SPEU has underperformed XLK with an annualized return of 9.17%, while XLK has yielded a comparatively higher 25.84% annualized return.

SPEU

• 1D: -1.25%
• 1M: 2.61%
• YTD: 5.34%
• 6M: 8.65%
• 1Y: 17.93%
• 3Y*: 16.24%
• 5Y*: 8.03%
• 10Y*: 9.17%

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)

SPEU vs. XLK - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
SPEU SPDR Portfolio Europe ETF	5.34%	35.80%	1.93%	19.85%	-15.97%	16.20%	6.35%	26.15%	-13.79%	23.80%
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 SPEU 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	0.53
Correlation (5Y) Calculated over the trailing 5-year period	0.61
Correlation (10Y) Calculated over the trailing 10-year period	0.61
Correlation (All Time) Calculated using the full available price history since Oct 22, 2002	0.63

The correlation between SPEU and XLK has been stable across timeframes, ranging from 0.53 to 0.63 - a consistent structural relationship.

SPEU vs. XLK - Sectors Allocation Comparison

Sectors	SPEU	XLK
Financial Services	13.3%	-
Healthcare	10.4%	-
Technology	9.2%	99.7%
Industrials	6.1%	0.1%
Energy	5.3%	0.2%
Consumer Defensive	3.6%	-
Basic Materials	3.4%	-
Consumer Cyclical	3.3%	-
Real Estate	1.6%	-
Utilities	1.5%	-
Communication Services	0.9%	-

Return for Risk

SPEU vs. XLK — Risk / Return Rank

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

SPEU

SPEU Risk / Return Rank: 32
SPEU Sharpe Ratio Rank: 32
SPEU Sortino Ratio Rank: 31
SPEU Omega Ratio Rank: 30
SPEU Calmar Ratio Rank: 30
SPEU Martin Ratio Rank: 35

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.

SPEU vs. XLK - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for SPDR Portfolio Europe ETF (SPEU) 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.

	SPEU	XLK	Difference
Sharpe ratio: Return per unit of total volatility	1.17	3.24	-2.07
Sortino ratio: Return per unit of downside risk	1.71	3.92	-2.21
Omega ratio: Gain probability vs. loss probability	1.21	1.52	-0.31
Calmar ratio: Return relative to maximum drawdown	1.49	4.22	-2.74
Martin ratio: Return relative to average drawdown	5.47	14.16	-8.69
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month.

SPEU vs. XLK - Sharpe Ratio Comparison

The current SPEU Sharpe Ratio is 1.17, which is lower than the XLK Sharpe Ratio of 3.24. The chart below compares the historical Sharpe Ratios of SPEU 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

	SPEU	XLK	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	1.17	3.24	-2.07
Sharpe Ratio (5Y) Calculated over the trailing 5-year period	0.46	0.96	-0.50
Sharpe Ratio (10Y) Calculated over the trailing 10-year period	0.50	1.06	-0.56
Sharpe Ratio (All Time) Calculated using the full available price history	0.31	0.42	-0.11

Drawdowns

SPEU vs. XLK - Drawdown Comparison

The maximum SPEU drawdown since its inception was -62.45%, smaller than the maximum XLK drawdown of -82.05%. Use the drawdown chart below to compare losses from any high point for SPEU and XLK.

Drawdown Indicators

	SPEU	XLK	Difference
Max Drawdown Largest peak-to-trough decline	-62.45%	-82.05%	+19.60%
Max Drawdown (1Y) Largest decline over 1 year	-12.09%	-15.92%	+3.83%
Max Drawdown (3Y) Largest decline over 3 years	-14.17%	-25.66%	+11.49%
Max Drawdown (5Y) Largest decline over 5 years	-32.70%	-33.56%	+0.86%
Max Drawdown (10Y) Largest decline over 10 years	-36.83%	-33.56%	-3.27%
Current Drawdown Current decline from peak	-2.56%	-1.00%	-1.56%
Average Drawdown Average peak-to-trough decline	-13.85%	-34.96%	+21.11%
Ulcer Index Depth and duration of drawdowns from previous peaks	3.29%	4.74%	-1.45%

Volatility

SPEU vs. XLK - Volatility Comparison

The current volatility for SPDR Portfolio Europe ETF (SPEU) is 5.75%, while State Street Technology Select Sector SPDR ETF (XLK) has a volatility of 6.98%. This indicates that SPEU 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

	SPEU	XLK	Difference
Volatility (1M) Calculated over the trailing 1-month period	5.75%	6.98%	-1.23%
Volatility (6M) Calculated over the trailing 6-month period	12.85%	16.68%	-3.83%
Volatility (1Y) Calculated over the trailing 1-year period	15.42%	20.82%	-5.40%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	17.51%	24.90%	-7.39%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	18.51%	24.49%	-5.98%

SPEU vs. XLK - Expense Ratio Comparison

SPEU has a 0.09% 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

SPEU vs. XLK - Dividend Comparison

SPEU's dividend yield for the trailing twelve months is around 3.40%, more than XLK's 0.39% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
SPEU SPDR Portfolio Europe ETF	3.40%	3.47%	3.29%	2.91%	3.08%	2.67%	2.29%	3.19%	3.99%	2.82%	3.66%	3.62%
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 SPEU and XLK in my portfolio?

SPEU 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, SPEU or XLK?

XLK has higher volatility (6.98%) compared to SPEU (5.75%). In terms of maximum drawdown, SPEU dropped -62.45% vs XLK's -82.05%.

Which ETF is better, SPEU or XLK?

On 10-year performance, XLK leads with 25.84% vs 9.17% for SPEU. On fees, XLK is cheaper at 0.08% per year. On volatility, SPEU has been the lower-risk option at 5.75%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, SPEU or XLK?

Over the 10-year period, XLK has performed better with a 25.84% return vs 9.17%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, SPEU or XLK?

XLK is cheaper with a 0.08% expense ratio, compared with 0.09% for SPEU.

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

SPEU has the higher dividend yield at 3.40%, compared with 0.39% for XLK.

What is the main difference between SPEU and XLK?

SPEU is categorized as Europe Equities, while XLK is Technology Equities. SPEU tracks STOXX Europe Total Market, while XLK tracks S&P Technology Select Sector Daily Capped 35/20 Index. Their fees differ too: 0.09% for SPEU and 0.08% for XLK.

Which has better risk-adjusted returns?

XLK currently has the higher Sharpe Ratio (3.24 vs 1.17), 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.