UFOX vs. XLK

Last updated Jun 24, 2026

UFOX (Defiance Connective Technologies ETF) and XLK (State Street Technology Select Sector SPDR ETF) are both Technology Equities funds - UFOX tracks the BlueStar Connective Technologies Index while XLK tracks the S&P Technology Select Sector Daily Capped 35/20 Index. Both are passively managed. Over the past 5 years, UFOX returned 20.74%/yr vs 21.34%/yr for XLK. Their correlation of 0.88 suggests significant overlap in exposure. UFOX charges 0.30%/yr vs 0.08%/yr for XLK.

Performance

UFOX vs. XLK - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in Defiance Connective Technologies ETF (UFOX) 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, UFOX achieves a 42.92% return, which is significantly higher than XLK's 28.25% return.

UFOX

• 1D: -3.21%
• 1M: -8.35%
• YTD: 42.92%
• 6M: 40.39%
• 1Y: 82.24%
• 3Y*: 42.75%
• 5Y*: 20.74%
• 10Y*: —

XLK

• 1D: -4.14%
• 1M: 2.23%
• YTD: 28.25%
• 6M: 26.51%
• 1Y: 52.47%
• 3Y*: 30.61%
• 5Y*: 21.34%
• 10Y*: 25.48%

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

UFOX vs. XLK - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019
UFOX Defiance Connective Technologies ETF	42.92%	34.83%	34.11%	21.83%	-27.26%	25.68%	29.78%	5.58%
XLK State Street Technology Select Sector SPDR ETF	28.25%	24.61%	21.63%	56.02%	-27.73%	34.74%	43.62%	30.69%

Correlation

The correlation between UFOX and XLK is 0.84, 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	0.84
Correlation (3Y) Calculated over the trailing 3-year period	0.87
Correlation (5Y) Calculated over the trailing 5-year period	0.89
Correlation (All Time) Calculated using the full available price history since Mar 5, 2019	0.88

The correlation between UFOX and XLK has been stable across timeframes, ranging from 0.84 to 0.89 - a consistent structural relationship.

UFOX vs. XLK - Sectors Allocation Comparison

Sectors	UFOX	XLK
Technology	75.8%	99.7%
Industrials	13.9%	0.1%
Communication Services	7.1%	-
Real Estate	3.2%	-
Basic Materials	-	-
Consumer Cyclical	-	-
Consumer Defensive	-	-
Energy	-	0.2%
Financial Services	-	-
Healthcare	-	-
Utilities	-	-

Return for Risk

UFOX vs. XLK — Risk / Return Rank

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

UFOX

UFOX Risk / Return Rank: 89
UFOX Sharpe Ratio Rank: 91
UFOX Sortino Ratio Rank: 84
UFOX Omega Ratio Rank: 83
UFOX Calmar Ratio Rank: 92
UFOX Martin Ratio Rank: 93

XLK

XLK Risk / Return Rank: 66
XLK Sharpe Ratio Rank: 73
XLK Sortino Ratio Rank: 61
XLK Omega Ratio Rank: 64
XLK Calmar Ratio Rank: 68
XLK Martin Ratio Rank: 61

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.

UFOX vs. XLK - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Defiance Connective Technologies ETF (UFOX) 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.

	UFOX	XLK	Difference
Sharpe ratio: Return per unit of total volatility	2.93	2.25	+0.69
Sortino ratio: Return per unit of downside risk	3.49	2.77	+0.72
Omega ratio: Gain probability vs. loss probability	1.46	1.38	+0.09
Calmar ratio: Return relative to maximum drawdown	5.78	3.31	+2.46
Martin ratio: Return relative to average drawdown	22.15	10.56	+11.58

UFOX vs. XLK - Sharpe Ratio Comparison

The current UFOX Sharpe Ratio is 2.93, which is higher than the XLK Sharpe Ratio of 2.25. The chart below compares the historical Sharpe Ratios of UFOX 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

UFOX vs. XLK - Drawdown Comparison

The maximum UFOX drawdown since its inception was -33.90%, smaller than the maximum XLK drawdown of -82.05%. Use the drawdown chart below to compare losses from any high point for UFOX and XLK.

Drawdown Indicators

	UFOX	XLK	Difference
Max Drawdown Largest peak-to-trough decline	-33.90%	-82.05%	+48.15%
Max Drawdown (1Y) Largest decline over 1 year	-14.31%	-15.92%	+1.61%
Max Drawdown (3Y) Largest decline over 3 years	-28.14%	-25.66%	-2.48%
Max Drawdown (5Y) Largest decline over 5 years	-33.90%	-33.56%	-0.34%
Max Drawdown (10Y) Largest decline over 10 years	—	-33.56%	—
Current Drawdown Current decline from peak	-14.31%	-6.96%	-7.35%
Average Drawdown Average peak-to-trough decline	-9.03%	-34.90%	+25.87%
Ulcer Index Depth and duration of drawdowns from previous peaks	3.73%	4.98%	-1.25%

Volatility

UFOX vs. XLK - Volatility Comparison

Defiance Connective Technologies ETF (UFOX) has a higher volatility of 13.96% compared to State Street Technology Select Sector SPDR ETF (XLK) at 12.51%. This indicates that UFOX's price experiences larger fluctuations and is considered to be riskier than XLK based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	UFOX	XLK	Difference
Volatility (1M) Calculated over the trailing 1-month period	13.96%	12.51%	+1.45%
Volatility (6M) Calculated over the trailing 6-month period	23.11%	19.70%	+3.41%
Volatility (1Y) Calculated over the trailing 1-year period	28.22%	23.48%	+4.74%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	25.17%	25.37%	-0.20%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	25.52%	24.71%	+0.81%

UFOX vs. XLK - Expense Ratio Comparison

UFOX has a 0.30% expense ratio, which is higher than XLK's 0.08% expense ratio.

Dividends

UFOX vs. XLK - Dividend Comparison

UFOX's dividend yield for the trailing twelve months is around 0.41%, less than XLK's 0.43% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
UFOX Defiance Connective Technologies ETF	0.41%	0.56%	0.79%	1.40%	1.63%	1.17%	0.99%	0.75%	0.00%	0.00%	0.00%	0.00%
XLK State Street Technology Select Sector SPDR ETF	0.43%	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 UFOX and XLK in my portfolio?

UFOX and XLK have a correlation of 0.84, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, UFOX or XLK?

UFOX has higher volatility (13.96%) compared to XLK (12.51%). In terms of maximum drawdown, UFOX dropped -33.90% vs XLK's -82.05%.

Which ETF is better, UFOX or XLK?

On 5-year performance, XLK leads with 21.34% vs 20.74% for UFOX. On fees, XLK is cheaper at 0.08% per year. On volatility, XLK has been the lower-risk option at 12.51%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, UFOX or XLK?

Over the 5-year period, XLK has performed better with a 21.34% return vs 20.74%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, UFOX or XLK?

XLK is cheaper with a 0.08% expense ratio, compared with 0.30% for UFOX.

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

XLK has the higher dividend yield at 0.43%, compared with 0.41% for UFOX.

What is the main difference between UFOX and XLK?

UFOX tracks BlueStar Connective Technologies Index, while XLK tracks S&P Technology Select Sector Daily Capped 35/20 Index. They also come from different issuers: Defiance and State Street. Their fees differ too: 0.30% for UFOX and 0.08% for XLK.

Which has better risk-adjusted returns?

UFOX currently has the higher Sharpe Ratio (2.93 vs 2.25), 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.