TCAF vs. XLK

Last updated Jun 4, 2026

TCAF (T. Rowe Price Capital Appreciation Equity ETF) and XLK (State Street Technology Select Sector SPDR ETF) are both exchange-traded funds - TCAF is a Large Cap Blend Equities fund actively managed by T. Rowe Price, while XLK is a Technology Equities fund tracking the S&P Technology Select Sector Daily Capped 35/20 Index. TCAF is actively managed, while XLK is passively managed. Over the past year, TCAF returned 20.51% vs 66.93% for XLK. Their correlation of 0.82 suggests significant overlap in exposure. TCAF charges 0.31%/yr vs 0.08%/yr for XLK.

Performance

TCAF vs. XLK - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in T. Rowe Price Capital Appreciation Equity ETF (TCAF) 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, TCAF achieves a 6.51% return, which is significantly lower than XLK's 36.47% return.

TCAF

• 1D: -0.46%
• 1M: 3.54%
• YTD: 6.51%
• 6M: 6.60%
• 1Y: 20.51%
• 3Y*: —
• 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)

TCAF vs. XLK - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023
TCAF T. Rowe Price Capital Appreciation Equity ETF	6.51%	15.45%	20.93%	8.40%
XLK State Street Technology Select Sector SPDR ETF	36.47%	24.61%	21.63%	10.93%

Correlation

The correlation between TCAF and XLK is 0.77, 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	0.77
Correlation (All Time) Calculated using the full available price history since Jun 16, 2023	0.82

The correlation between TCAF and XLK has been stable across timeframes, ranging from 0.77 to 0.82 - a consistent structural relationship.

TCAF vs. XLK - Sectors Allocation Comparison

Sectors	TCAF	XLK
Technology	33.7%	99.7%
Healthcare	17.3%	-
Communication Services	11.4%	-
Consumer Cyclical	10.6%	-
Utilities	8.6%	-
Financial Services	6.0%	-
Industrials	4.6%	0.1%
Consumer Defensive	3.3%	-
Energy	2.6%	0.2%
Basic Materials	0.1%	-
Real Estate	0.1%	-

Return for Risk

TCAF vs. XLK — Risk / Return Rank

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

TCAF

TCAF Risk / Return Rank: 47
TCAF Sharpe Ratio Rank: 51
TCAF Sortino Ratio Rank: 50
TCAF Omega Ratio Rank: 52
TCAF Calmar Ratio Rank: 36
TCAF Martin Ratio Rank: 44

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.

TCAF vs. XLK - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for T. Rowe Price Capital Appreciation Equity ETF (TCAF) 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.

	TCAF	XLK	Difference
Sharpe ratio: Return per unit of total volatility	1.80	3.24	-1.44
Sortino ratio: Return per unit of downside risk	2.48	3.92	-1.44
Omega ratio: Gain probability vs. loss probability	1.33	1.52	-0.19
Calmar ratio: Return relative to maximum drawdown	1.82	4.22	-2.41
Martin ratio: Return relative to average drawdown	7.28	14.16	-6.88
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month.

TCAF vs. XLK - Sharpe Ratio Comparison

The current TCAF Sharpe Ratio is 1.80, which is lower than the XLK Sharpe Ratio of 3.24. The chart below compares the historical Sharpe Ratios of TCAF 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

	TCAF	XLK	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	1.80	3.24	-1.44
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	1.26	0.42	+0.85

Drawdowns

TCAF vs. XLK - Drawdown Comparison

The maximum TCAF drawdown since its inception was -16.37%, smaller than the maximum XLK drawdown of -82.05%. Use the drawdown chart below to compare losses from any high point for TCAF and XLK.

Drawdown Indicators

	TCAF	XLK	Difference
Max Drawdown Largest peak-to-trough decline	-16.37%	-82.05%	+65.68%
Max Drawdown (1Y) Largest decline over 1 year	-11.33%	-15.92%	+4.59%
Max Drawdown (3Y) Largest decline over 3 years	—	-25.66%	—
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	-0.97%	-1.00%	+0.03%
Average Drawdown Average peak-to-trough decline	-2.06%	-34.96%	+32.90%
Ulcer Index Depth and duration of drawdowns from previous peaks	2.82%	4.74%	-1.92%

Volatility

TCAF vs. XLK - Volatility Comparison

The current volatility for T. Rowe Price Capital Appreciation Equity ETF (TCAF) is 2.43%, while State Street Technology Select Sector SPDR ETF (XLK) has a volatility of 6.98%. This indicates that TCAF 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

	TCAF	XLK	Difference
Volatility (1M) Calculated over the trailing 1-month period	2.43%	6.98%	-4.55%
Volatility (6M) Calculated over the trailing 6-month period	8.75%	16.68%	-7.93%
Volatility (1Y) Calculated over the trailing 1-year period	11.47%	20.82%	-9.35%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	13.94%	24.90%	-10.96%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	13.94%	24.49%	-10.55%

TCAF vs. XLK - Expense Ratio Comparison

TCAF has a 0.31% expense ratio, which is higher than XLK's 0.08% expense ratio.

Dividends

TCAF vs. XLK - Dividend Comparison

TCAF's dividend yield for the trailing twelve months is around 0.47%, more than XLK's 0.39% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
TCAF T. Rowe Price Capital Appreciation Equity ETF	0.47%	0.50%	0.43%	0.26%	0.00%	0.00%	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 TCAF and XLK in my portfolio?

TCAF and XLK have a correlation of 0.77, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, TCAF or XLK?

XLK has higher volatility (6.98%) compared to TCAF (2.43%). In terms of maximum drawdown, TCAF dropped -16.37% vs XLK's -82.05%.

Which ETF is better, TCAF or XLK?

On 1-year performance, XLK leads with 66.93% vs 20.51% for TCAF. On fees, XLK is cheaper at 0.08% per year. On volatility, TCAF has been the lower-risk option at 2.43%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, TCAF or XLK?

Over the 1-year period, XLK has performed better with a 66.93% return vs 20.51%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, TCAF or XLK?

XLK is cheaper with a 0.08% expense ratio, compared with 0.31% for TCAF.

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

TCAF has the higher dividend yield at 0.47%, compared with 0.39% for XLK.

What is the main difference between TCAF and XLK?

TCAF is categorized as Large Cap Blend Equities, while XLK is Technology Equities. They also come from different issuers: T. Rowe Price and State Street. Their fees differ too: 0.31% for TCAF and 0.08% for XLK.

Which has better risk-adjusted returns?

XLK currently has the higher Sharpe Ratio (3.24 vs 1.80), 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.