SPHY vs. XLK

Last updated Jun 4, 2026

SPHY (SPDR Portfolio High Yield Bond ETF) and XLK (State Street Technology Select Sector SPDR ETF) are both exchange-traded funds - SPHY is a High Yield Bonds fund tracking the ICE BofA US High Yield 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, SPHY returned 5.15%/yr vs 25.84%/yr for XLK. At a 0.41 correlation, their price movements are largely independent. SPHY charges 0.05%/yr vs 0.08%/yr for XLK.

Performance

SPHY vs. XLK - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in SPDR Portfolio High Yield Bond ETF (SPHY) 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, SPHY achieves a 1.54% return, which is significantly lower than XLK's 36.47% return. Over the past 10 years, SPHY has underperformed XLK with an annualized return of 5.15%, while XLK has yielded a comparatively higher 25.84% annualized return.

SPHY

• 1D: -0.21%
• 1M: 0.42%
• YTD: 1.54%
• 6M: 1.93%
• 1Y: 7.16%
• 3Y*: 8.97%
• 5Y*: 4.39%
• 10Y*: 5.15%

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)

SPHY vs. XLK - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
SPHY SPDR Portfolio High Yield Bond ETF	1.54%	8.59%	8.54%	12.81%	-10.57%	5.61%	6.65%	13.16%	-3.35%	7.35%
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 SPHY 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	0.54
Correlation (5Y) Calculated over the trailing 5-year period	0.62
Correlation (10Y) Calculated over the trailing 10-year period	0.52
Correlation (All Time) Calculated using the full available price history since Jun 20, 2012	0.41

The correlation between SPHY and XLK shifts across timeframes, from 0.41 (all time) to 0.62 (5 years), reflecting how their relationship changes across market environments.

SPHY vs. XLK - Sectors Allocation Comparison

Sectors	SPHY	XLK
Financial Services	99.9%	-
Energy	0.1%	0.2%
Basic Materials	-	-
Communication Services	-	-
Consumer Cyclical	-	-
Consumer Defensive	-	-
Healthcare	-	-
Industrials	-	0.1%
Real Estate	-	-
Technology	-	99.7%
Utilities	-	-

Return for Risk

SPHY vs. XLK — Risk / Return Rank

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

SPHY

SPHY Risk / Return Rank: 62
SPHY Sharpe Ratio Rank: 56
SPHY Sortino Ratio Rank: 62
SPHY Omega Ratio Rank: 62
SPHY Calmar Ratio Rank: 59
SPHY Martin Ratio Rank: 71

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.

SPHY vs. XLK - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for SPDR Portfolio High Yield Bond ETF (SPHY) 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.

	SPHY	XLK	Difference
Sharpe ratio: Return per unit of total volatility	1.96	3.24	-1.28
Sortino ratio: Return per unit of downside risk	2.98	3.92	-0.95
Omega ratio: Gain probability vs. loss probability	1.39	1.52	-0.13
Calmar ratio: Return relative to maximum drawdown	2.98	4.22	-1.24
Martin ratio: Return relative to average drawdown	13.52	14.16	-0.64
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month.

SPHY vs. XLK - Sharpe Ratio Comparison

The current SPHY Sharpe Ratio is 1.96, which is lower than the XLK Sharpe Ratio of 3.24. The chart below compares the historical Sharpe Ratios of SPHY 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

	SPHY	XLK	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	1.96	3.24	-1.28
Sharpe Ratio (5Y) Calculated over the trailing 5-year period	0.62	0.96	-0.35
Sharpe Ratio (10Y) Calculated over the trailing 10-year period	0.65	1.06	-0.40
Sharpe Ratio (All Time) Calculated using the full available price history	0.64	0.42	+0.22

Drawdowns

SPHY vs. XLK - Drawdown Comparison

The maximum SPHY drawdown since its inception was -21.97%, smaller than the maximum XLK drawdown of -82.05%. Use the drawdown chart below to compare losses from any high point for SPHY and XLK.

Drawdown Indicators

	SPHY	XLK	Difference
Max Drawdown Largest peak-to-trough decline	-21.97%	-82.05%	+60.08%
Max Drawdown (1Y) Largest decline over 1 year	-2.41%	-15.92%	+13.51%
Max Drawdown (3Y) Largest decline over 3 years	-4.85%	-25.66%	+20.81%
Max Drawdown (5Y) Largest decline over 5 years	-15.29%	-33.56%	+18.27%
Max Drawdown (10Y) Largest decline over 10 years	-21.97%	-33.56%	+11.59%
Current Drawdown Current decline from peak	-0.22%	-1.00%	+0.78%
Average Drawdown Average peak-to-trough decline	-2.29%	-34.96%	+32.67%
Ulcer Index Depth and duration of drawdowns from previous peaks	0.53%	4.74%	-4.21%

Volatility

SPHY vs. XLK - Volatility Comparison

The current volatility for SPDR Portfolio High Yield Bond ETF (SPHY) is 1.14%, while State Street Technology Select Sector SPDR ETF (XLK) has a volatility of 6.98%. This indicates that SPHY 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

	SPHY	XLK	Difference
Volatility (1M) Calculated over the trailing 1-month period	1.14%	6.98%	-5.84%
Volatility (6M) Calculated over the trailing 6-month period	2.91%	16.68%	-13.77%
Volatility (1Y) Calculated over the trailing 1-year period	3.68%	20.82%	-17.14%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	7.17%	24.90%	-17.73%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	7.89%	24.49%	-16.60%

SPHY vs. XLK - Expense Ratio Comparison

SPHY has a 0.05% expense ratio, which is lower than XLK's 0.08% expense ratio. Despite the difference, both funds are considered low-cost compared to the broader market, where average expense ratios usually range from 0.3% to 0.9%.

Dividends

SPHY vs. XLK - Dividend Comparison

SPHY's dividend yield for the trailing twelve months is around 7.27%, more than XLK's 0.39% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
SPHY SPDR Portfolio High Yield Bond ETF	7.27%	7.38%	7.80%	7.30%	6.47%	5.13%	5.63%	5.73%	4.09%	4.41%	4.27%	4.29%
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 SPHY and XLK in my portfolio?

SPHY 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, SPHY or XLK?

XLK has higher volatility (6.98%) compared to SPHY (1.14%). In terms of maximum drawdown, SPHY dropped -21.97% vs XLK's -82.05%.

Which ETF is better, SPHY or XLK?

On 10-year performance, XLK leads with 25.84% vs 5.15% for SPHY. On fees, SPHY is cheaper at 0.05% per year. On volatility, SPHY has been the lower-risk option at 1.14%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, SPHY or XLK?

Over the 10-year period, XLK has performed better with a 25.84% return vs 5.15%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, SPHY or XLK?

SPHY is cheaper with a 0.05% expense ratio, compared with 0.08% for XLK.

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

SPHY has the higher dividend yield at 7.27%, compared with 0.39% for XLK.

What is the main difference between SPHY and XLK?

SPHY is categorized as High Yield Bonds, while XLK is Technology Equities. SPHY tracks ICE BofA US High Yield Index, while XLK tracks S&P Technology Select Sector Daily Capped 35/20 Index. Their fees differ too: 0.05% for SPHY and 0.08% for XLK.

Which has better risk-adjusted returns?

XLK currently has the higher Sharpe Ratio (3.24 vs 1.96), 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.