TECB vs. XLK
Compare and contrast key facts about iShares U.S. Tech Breakthrough Multisector ETF (TECB) and Technology Select Sector SPDR Fund (XLK).
TECB and XLK are both exchange-traded funds (ETFs), meaning they are traded on stock exchanges and can be bought and sold throughout the day. TECB is a passively managed fund by iShares that tracks the performance of the NYSE FactSet U.S. Tech Breakthrough Index. It was launched on Jan 8, 2020. XLK is a passively managed fund by State Street that tracks the performance of the Technology Select Sector Index. It was launched on Dec 16, 1998. Both TECB and XLK are passive ETFs, meaning that they are not actively managed but aim to replicate the performance of the underlying index as closely as possible.
Scroll down to visually compare performance, riskiness, drawdowns, and other indicators and decide which better suits your portfolio: TECB or XLK.
Key characteristics
| TECB | XLK | |
|---|---|---|
| YTD Return | 12.54% | 10.23% |
| 1Y Return | 40.60% | 35.54% |
| 3Y Return (Ann) | 11.03% | 17.54% |
| Sharpe Ratio | 2.46 | 2.13 |
| Daily Std Dev | 17.68% | 17.96% |
| Max Drawdown | -41.62% | -82.05% |
| Current Drawdown | -0.25% | -0.57% |
Correlation
The correlation between TECB and XLK is 0.94, which is considered to be high. That indicates a strong positive relationship between their price movements. Having highly-correlated positions in a portfolio may signal a lack of diversification, potentially leading to increased risk during market downturns.
Performance
TECB vs. XLK - Performance Comparison
In the year-to-date period, TECB achieves a 12.54% return, which is significantly higher than XLK's 10.23% return. The chart below displays the growth of a $10,000 investment in both assets, with all prices adjusted for splits and dividends.
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TECB vs. XLK - Expense Ratio Comparison
TECB has a 0.40% expense ratio, which is higher than XLK's 0.13% expense ratio.
Risk-Adjusted Performance
TECB vs. XLK - Risk-Adjusted Performance Comparison
This table presents a comparison of risk-adjusted performance metrics for iShares U.S. Tech Breakthrough Multisector ETF (TECB) and Technology Select Sector SPDR Fund (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.
Dividends
TECB vs. XLK - Dividend Comparison
TECB's dividend yield for the trailing twelve months is around 0.24%, less than XLK's 0.70% yield.
| TTM | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 | 2014 | 2013 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
TECB iShares U.S. Tech Breakthrough Multisector ETF | 0.24% | 0.23% | 0.61% | 0.35% | 0.77% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% |
XLK Technology Select Sector SPDR Fund | 0.70% | 0.76% | 1.04% | 0.65% | 0.92% | 1.16% | 1.60% | 1.37% | 1.74% | 1.79% | 1.75% | 1.70% |
Drawdowns
TECB vs. XLK - Drawdown Comparison
The maximum TECB drawdown since its inception was -41.62%, smaller than the maximum XLK drawdown of -82.05%. Use the drawdown chart below to compare losses from any high point for TECB and XLK. For additional features, visit the drawdowns tool.
Volatility
TECB vs. XLK - Volatility Comparison
The current volatility for iShares U.S. Tech Breakthrough Multisector ETF (TECB) is 5.11%, while Technology Select Sector SPDR Fund (XLK) has a volatility of 5.59%. This indicates that TECB 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.