TRFM vs. XLK

Last updated Jun 4, 2026

TRFM (AAM Transformers ETF) and XLK (State Street Technology Select Sector SPDR ETF) are both Technology Equities funds - TRFM tracks the Pence Transformers Index - Benchmark TR Gross while XLK tracks the S&P Technology Select Sector Daily Capped 35/20 Index. Both are passively managed. Over the past 3 years, TRFM returned 31.63%/yr vs 33.46%/yr for XLK. Their correlation of 0.87 suggests significant overlap in exposure. TRFM charges 0.49%/yr vs 0.08%/yr for XLK.

Performance

TRFM vs. XLK - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in AAM Transformers ETF (TRFM) 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, TRFM achieves a 30.30% return, which is significantly lower than XLK's 34.34% return.

TRFM

• 1D: -1.23%
• 1M: 12.40%
• YTD: 30.30%
• 6M: 29.25%
• 1Y: 53.69%
• 3Y*: 31.63%
• 5Y*: —
• 10Y*: —

XLK

• 1D: -1.56%
• 1M: 16.63%
• YTD: 34.34%
• 6M: 33.10%
• 1Y: 64.08%
• 3Y*: 33.46%
• 5Y*: 23.44%
• 10Y*: 25.62%

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

TRFM vs. XLK - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022
TRFM AAM Transformers ETF	30.30%	25.76%	19.96%	44.71%	-7.38%
XLK State Street Technology Select Sector SPDR ETF	34.34%	24.61%	21.63%	56.02%	-3.21%

Correlation

The correlation between TRFM and XLK is 0.88, indicating a strong positive relationship between their price movements. Combining them offers limited diversification - they tend to fall together during downturns.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	0.88
Correlation (3Y) Calculated over the trailing 3-year period	0.86
Correlation (All Time) Calculated using the full available price history since Jul 13, 2022	0.87

The correlation between TRFM and XLK has been stable across timeframes, ranging from 0.86 to 0.88 - a consistent structural relationship.

TRFM vs. XLK - Sectors Allocation Comparison

Sectors	TRFM	XLK
Technology	53.3%	99.7%
Consumer Cyclical	17.7%	-
Communication Services	12.3%	-
Industrials	7.2%	0.1%
Energy	3.5%	0.2%
Financial Services	2.8%	-
Utilities	1.7%	-
Basic Materials	1.2%	-
Healthcare	0.2%	-
Consumer Defensive	-	-
Real Estate	-	-

Return for Risk

TRFM vs. XLK — Risk / Return Rank

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

TRFM

TRFM Risk / Return Rank: 71
TRFM Sharpe Ratio Rank: 74
TRFM Sortino Ratio Rank: 65
TRFM Omega Ratio Rank: 64
TRFM Calmar Ratio Rank: 80
TRFM Martin Ratio Rank: 74

XLK

XLK Risk / Return Rank: 82
XLK Sharpe Ratio Rank: 90
XLK Sortino Ratio Rank: 85
XLK Omega Ratio Rank: 83
XLK Calmar Ratio Rank: 79
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.

TRFM vs. XLK - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for AAM Transformers ETF (TRFM) 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.

	TRFM	XLK	Difference
Sharpe ratio: Return per unit of total volatility	2.41	3.09	-0.68
Sortino ratio: Return per unit of downside risk	3.04	3.77	-0.74
Omega ratio: Gain probability vs. loss probability	1.39	1.49	-0.11
Calmar ratio: Return relative to maximum drawdown	4.15	4.04	+0.11
Martin ratio: Return relative to average drawdown	14.09	13.55	+0.54
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month.

TRFM vs. XLK - Sharpe Ratio Comparison

The current TRFM Sharpe Ratio is 2.41, which is comparable to the XLK Sharpe Ratio of 3.09. The chart below compares the historical Sharpe Ratios of TRFM 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

	TRFM	XLK	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	2.41	3.09	-0.68
Sharpe Ratio (5Y) Calculated over the trailing 5-year period	—	0.95	—
Sharpe Ratio (10Y) Calculated over the trailing 10-year period	—	1.05	—
Sharpe Ratio (All Time) Calculated using the full available price history	1.05	0.41	+0.64

Drawdowns

TRFM vs. XLK - Drawdown Comparison

The maximum TRFM drawdown since its inception was -28.40%, smaller than the maximum XLK drawdown of -82.05%. Use the drawdown chart below to compare losses from any high point for TRFM and XLK.

Drawdown Indicators

	TRFM	XLK	Difference
Max Drawdown Largest peak-to-trough decline	-28.40%	-82.05%	+53.65%
Max Drawdown (1Y) Largest decline over 1 year	-12.99%	-15.92%	+2.93%
Max Drawdown (3Y) Largest decline over 3 years	-28.40%	-25.66%	-2.74%
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	-1.23%	-2.54%	+1.31%
Average Drawdown Average peak-to-trough decline	-6.61%	-34.95%	+28.34%
Ulcer Index Depth and duration of drawdowns from previous peaks	3.82%	4.74%	-0.92%

Volatility

TRFM vs. XLK - Volatility Comparison

AAM Transformers ETF (TRFM) and State Street Technology Select Sector SPDR ETF (XLK) have volatilities of 7.34% and 7.27%, respectively, indicating that both stocks experience similar levels of price fluctuations. This suggests that the risk associated with both stocks, as measured by volatility, is nearly the same. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	TRFM	XLK	Difference
Volatility (1M) Calculated over the trailing 1-month period	7.34%	7.27%	+0.07%
Volatility (6M) Calculated over the trailing 6-month period	17.46%	16.76%	+0.70%
Volatility (1Y) Calculated over the trailing 1-year period	22.47%	20.86%	+1.61%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	26.94%	24.90%	+2.04%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	26.94%	24.49%	+2.45%

TRFM vs. XLK - Expense Ratio Comparison

TRFM has a 0.49% expense ratio, which is higher than XLK's 0.08% expense ratio.

Dividends

TRFM vs. XLK - Dividend Comparison

TRFM's dividend yield for the trailing twelve months is around 0.13%, less than XLK's 0.40% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
TRFM AAM Transformers ETF	0.13%	0.17%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%
XLK State Street Technology Select Sector SPDR ETF	0.40%	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 TRFM and XLK in my portfolio?

TRFM and XLK have a correlation of 0.88, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, TRFM or XLK?

TRFM has higher volatility (7.34%) compared to XLK (7.27%). In terms of maximum drawdown, TRFM dropped -28.40% vs XLK's -82.05%.

Which ETF is better, TRFM or XLK?

On 3-year performance, XLK leads with 33.46% vs 31.63% for TRFM. On fees, XLK is cheaper at 0.08% per year. Their volatility is very similar. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, TRFM or XLK?

Over the 3-year period, XLK has performed better with a 33.46% return vs 31.63%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, TRFM or XLK?

XLK is cheaper with a 0.08% expense ratio, compared with 0.49% for TRFM.

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

XLK has the higher dividend yield at 0.40%, compared with 0.13% for TRFM.

What is the main difference between TRFM and XLK?

TRFM tracks Pence Transformers Index - Benchmark TR Gross, while XLK tracks S&P Technology Select Sector Daily Capped 35/20 Index. They also come from different issuers: AAM and State Street. Their fees differ too: 0.49% for TRFM and 0.08% for XLK.

Which has better risk-adjusted returns?

XLK currently has the higher Sharpe Ratio (3.09 vs 2.41), 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.