SPSM vs. XLK

Last updated Aug 4, 2026

SPSM (State Street SPDR Portfolio S&P 600 Small Cap ETF) and XLK (State Street Technology Select Sector SPDR ETF) are both exchange-traded funds - SPSM is a Small Cap Blend Equities fund tracking the S&P SmallCap 600 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, SPSM returned 10.87%/yr vs 23.73%/yr for XLK. Their 0.62 correlation means they have sometimes moved together and sometimes differently. SPSM charges 0.03%/yr vs 0.08%/yr for XLK.

Performance

SPSM vs. XLK - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in State Street SPDR Portfolio S&P 600 Small Cap ETF (SPSM) and State Street Technology Select Sector SPDR ETF (XLK). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

The year-to-date returns for both investments are quite close, with SPSM having a 23.56% return and XLK slightly higher at 23.97%. Over the past 10 years, SPSM has underperformed XLK with an annualized return of 10.87%, while XLK has yielded a comparatively higher 23.73% annualized return.

SPSM

• 1D: 1.63%
• 1M: 0.95%
• 6M: 15.76%
• YTD: 23.56%
• 1Y: 38.23%
• 3Y*: 14.54%
• 5Y*: 8.14%
• 10Y*: 10.87%
• ALL TIME*: 10.18%

XLK

• 1D: 1.53%
• 1M: -1.41%
• 6M: 22.86%
• YTD: 23.97%
• 1Y: 39.24%
• 3Y*: 28.50%
• 5Y*: 19.12%
• 10Y*: 23.73%
• ALL TIME*: 10.26%

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

Liquidity Comparison

Position	Avg. Volume Value (2W)	Avg. Volume Value (1M)	Avg. Volume Value (3M)
SPSM State Street SPDR Portfolio S&P 600 Small Cap ETF	$90.04M	$96.96M	$95.31M
XLK State Street Technology Select Sector SPDR ETF	$1.65B	$1.63B	$2.23B

SPSM vs. XLK - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
SPSM State Street SPDR Portfolio S&P 600 Small Cap ETF	23.56%	6.11%	8.55%	16.11%	-16.12%	26.67%	11.69%	25.85%	-11.17%	15.44%
XLK State Street Technology Select Sector SPDR ETF	23.97%	24.61%	21.63%	56.02%	-27.73%	34.74%	43.62%	49.86%	-1.68%	34.26%

Correlation

The correlation between SPSM and XLK is 0.54, which is moderate. They have sometimes moved together and sometimes differently, sharing some price drivers without tracking each other closely.

	Correlation
Correlation (1Y) Focuses on recent behavior, but can change the most.	0.54
Correlation (3Y) Balances recent behavior with more history.	0.54
Correlation (5Y) Shows whether the relationship held over a longer period.	0.63
Correlation (10Y) Provides a long-term view across more market conditions.	0.61
Correlation (All Time) Calculated using the full available price history since Jul 9, 2013	0.62

The correlation between SPSM and XLK has been stable across timeframes, ranging from 0.54 to 0.63 - a consistent structural relationship.

SPSM vs. XLK - Sectors Allocation Comparison

Sectors	SPSM	XLK
Financial Services	17.1%	-
Industrials	15.6%	0.1%
Technology	15.5%	99.1%
Consumer Cyclical	13.2%	-
Healthcare	12.4%	-
Real Estate	7.6%	-
Energy	4.7%	0.2%
Basic Materials	4.7%	-
Consumer Defensive	4.2%	-
Communication Services	3.2%	0.9%
Utilities	1.8%	-

Return for Risk

SPSM vs. XLK — Risk / Return Rank

Compare historical risk-adjusted metric ranks over the past 12 months.

SPSM

SPSM Risk / Return Rank: 90
SPSM Sharpe Ratio Rank: 89
SPSM Sortino Ratio Rank: 90
SPSM Omega Ratio Rank: 87
SPSM Calmar Ratio Rank: 93
SPSM Martin Ratio Rank: 91

XLK

XLK Risk / Return Rank: 62
XLK Sharpe Ratio Rank: 66
XLK Sortino Ratio Rank: 60
XLK Omega Ratio Rank: 60
XLK Calmar Ratio Rank: 70
XLK Martin Ratio Rank: 55

The rank (0–100) uses a weighted average of the Sharpe, Sortino, Omega, Calmar, and Martin percentile ranks for the trailing 12 months. Higher means stronger historical risk-adjusted performance within the peer group.

SPSM vs. XLK - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for State Street SPDR Portfolio S&P 600 Small Cap ETF (SPSM) 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.

	SPSM	XLK	Difference
Sharpe ratio: Return per unit of total volatility	2.23	1.55	+0.69
Sortino ratio: Return per unit of downside risk	3.23	2.08	+1.15
Omega ratio: Gain probability vs. loss probability	1.39	1.26	+0.12
Calmar ratio: Return relative to maximum drawdown	4.40	2.48	+1.93
Martin ratio: Return relative to average drawdown	15.10	6.68	+8.42

SPSM vs. XLK - Sharpe Ratio Comparison

The current SPSM Sharpe Ratio is 2.23, which is higher than the XLK Sharpe Ratio of 1.55. The chart below compares the historical Sharpe Ratios of SPSM 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

SPSM vs. XLK - Drawdown Comparison

The maximum SPSM drawdown since its inception was -42.89%, smaller than the maximum XLK drawdown of -82.05%. Use the drawdown chart below to compare losses from any high point for SPSM and XLK.

Drawdown Indicators

	SPSM	XLK	Difference
Max Drawdown Largest peak-to-trough decline	-42.89%	-82.05%	+39.16%
Max Drawdown (1Y) Largest decline over 1 year	-8.72%	-15.92%	+7.20%
Max Drawdown (3Y) Largest decline over 3 years	-27.94%	-25.66%	-2.28%
Max Drawdown (5Y) Largest decline over 5 years	-27.94%	-33.56%	+5.62%
Max Drawdown (10Y) Largest decline over 10 years	-42.89%	-33.56%	-9.33%
Current Drawdown Current decline from peak	-0.31%	-10.07%	+9.76%
Average Drawdown Average peak-to-trough decline	-7.84%	-34.80%	+26.96%
Ulcer Index Depth and duration of drawdowns from previous peaks	2.54%	5.89%	-3.35%

Volatility

SPSM vs. XLK - Volatility Comparison

The current volatility for State Street SPDR Portfolio S&P 600 Small Cap ETF (SPSM) is 3.75%, while State Street Technology Select Sector SPDR ETF (XLK) has a volatility of 9.37%. This indicates that SPSM 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

	SPSM	XLK	Difference
Volatility (1M) Calculated over the trailing 1-month period	3.75%	9.37%	-5.62%
Volatility (6M) Calculated over the trailing 6-month period	11.70%	21.74%	-10.04%
Volatility (1Y) Calculated over the trailing 1-year period	17.24%	25.56%	-8.32%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	21.29%	25.77%	-4.48%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	22.95%	24.91%	-1.96%

SPSM vs. XLK - Expense Ratio Comparison

SPSM has a 0.03% 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

SPSM vs. XLK - Dividend Comparison

SPSM's dividend yield for the trailing twelve months is around 1.37%, more than XLK's 0.45% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
SPSM State Street SPDR Portfolio S&P 600 Small Cap ETF	1.37%	1.62%	1.85%	1.61%	1.38%	1.40%	1.34%	1.58%	1.82%	1.51%	1.49%	2.37%
XLK State Street Technology Select Sector SPDR ETF	0.45%	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 SPSM and XLK in my portfolio?

SPSM and XLK have a correlation of 0.54, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, SPSM or XLK?

XLK has higher volatility (9.37%) compared to SPSM (3.75%). In terms of maximum drawdown, SPSM dropped -42.89% vs XLK's -82.05%.

Which ETF is better, SPSM or XLK?

On 10-year performance, XLK leads with 23.73% vs 10.87% for SPSM. On fees, SPSM is cheaper at 0.03% per year. On volatility, SPSM has been the lower-risk option at 3.75%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, SPSM or XLK?

Over the 10-year period, XLK has performed better with a 23.73% return vs 10.87%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, SPSM or XLK?

SPSM is cheaper with a 0.03% expense ratio, compared with 0.08% for XLK.

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

SPSM has the higher dividend yield at 1.37%, compared with 0.45% for XLK.

What is the main difference between SPSM and XLK?

SPSM is categorized as Small Cap Blend Equities, while XLK is Technology Equities. SPSM tracks S&P SmallCap 600 Index, while XLK tracks S&P Technology Select Sector Daily Capped 35/20 Index. Their fees differ too: 0.03% for SPSM and 0.08% for XLK.

Which has better risk-adjusted returns?

SPSM currently has the higher Sharpe Ratio (2.23 vs 1.55), 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.