VPN vs. XLK

Last updated Jun 24, 2026

VPN (Global X Data Center REITs & Digital Infrastructure ETF) and XLK (State Street Technology Select Sector SPDR ETF) are both Technology Equities funds - VPN tracks the Solactive Data Center REITs & Digital Infrastructure Index while XLK tracks the S&P Technology Select Sector Daily Capped 35/20 Index. Both are passively managed. Over the past 5 years, VPN returned 14.82%/yr vs 21.34%/yr for XLK. A 0.65 correlation means they provide meaningful diversification when combined. VPN charges 0.50%/yr vs 0.08%/yr for XLK.

Performance

VPN vs. XLK - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in Global X Data Center REITs & Digital Infrastructure ETF (VPN) 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, VPN achieves a 49.19% return, which is significantly higher than XLK's 28.25% return.

VPN

• 1D: -3.02%
• 1M: 3.31%
• YTD: 49.19%
• 6M: 51.34%
• 1Y: 73.85%
• 3Y*: 35.46%
• 5Y*: 14.82%
• 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)

VPN vs. XLK - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020
VPN Global X Data Center REITs & Digital Infrastructure ETF	49.19%	28.99%	14.92%	18.93%	-30.89%	20.35%	6.60%
XLK State Street Technology Select Sector SPDR ETF	28.25%	24.61%	21.63%	56.02%	-27.73%	34.74%	16.87%

Correlation

The correlation between VPN and XLK is 0.70, 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	0.70
Correlation (3Y) Calculated over the trailing 3-year period	0.62
Correlation (5Y) Calculated over the trailing 5-year period	0.66
Correlation (All Time) Calculated using the full available price history since Oct 29, 2020	0.65

The correlation between VPN and XLK has been stable across timeframes, ranging from 0.62 to 0.70 - a consistent structural relationship.

VPN vs. XLK - Sectors Allocation Comparison

Sectors	VPN	XLK
Real Estate	58.0%	-
Technology	30.6%	99.7%
Communication Services	10.5%	-
Financial Services	0.9%	-
Basic Materials	-	-
Consumer Cyclical	-	-
Consumer Defensive	-	-
Energy	-	0.2%
Healthcare	-	-
Industrials	-	0.1%
Utilities	-	-

Return for Risk

VPN vs. XLK — Risk / Return Rank

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

VPN

VPN Risk / Return Rank: 89
VPN Sharpe Ratio Rank: 93
VPN Sortino Ratio Rank: 89
VPN Omega Ratio Rank: 87
VPN Calmar Ratio Rank: 92
VPN Martin Ratio Rank: 87

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.

VPN vs. XLK - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Global X Data Center REITs & Digital Infrastructure ETF (VPN) 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.

	VPN	XLK	Difference
Sharpe ratio: Return per unit of total volatility	3.19	2.25	+0.95
Sortino ratio: Return per unit of downside risk	3.84	2.77	+1.07
Omega ratio: Gain probability vs. loss probability	1.51	1.38	+0.13
Calmar ratio: Return relative to maximum drawdown	5.76	3.31	+2.45
Martin ratio: Return relative to average drawdown	17.72	10.56	+7.16

VPN vs. XLK - Sharpe Ratio Comparison

The current VPN Sharpe Ratio is 3.19, which is higher than the XLK Sharpe Ratio of 2.25. The chart below compares the historical Sharpe Ratios of VPN 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

VPN vs. XLK - Drawdown Comparison

The maximum VPN drawdown since its inception was -38.98%, smaller than the maximum XLK drawdown of -82.05%. Use the drawdown chart below to compare losses from any high point for VPN and XLK.

Drawdown Indicators

	VPN	XLK	Difference
Max Drawdown Largest peak-to-trough decline	-38.98%	-82.05%	+43.07%
Max Drawdown (1Y) Largest decline over 1 year	-12.89%	-15.92%	+3.03%
Max Drawdown (3Y) Largest decline over 3 years	-24.96%	-25.66%	+0.70%
Max Drawdown (5Y) Largest decline over 5 years	-38.98%	-33.56%	-5.42%
Max Drawdown (10Y) Largest decline over 10 years	—	-33.56%	—
Current Drawdown Current decline from peak	-3.02%	-6.96%	+3.94%
Average Drawdown Average peak-to-trough decline	-12.28%	-34.90%	+22.62%
Ulcer Index Depth and duration of drawdowns from previous peaks	4.18%	4.98%	-0.80%

Volatility

VPN vs. XLK - Volatility Comparison

The current volatility for Global X Data Center REITs & Digital Infrastructure ETF (VPN) is 9.71%, while State Street Technology Select Sector SPDR ETF (XLK) has a volatility of 12.51%. This indicates that VPN 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

	VPN	XLK	Difference
Volatility (1M) Calculated over the trailing 1-month period	9.71%	12.51%	-2.80%
Volatility (6M) Calculated over the trailing 6-month period	18.51%	19.70%	-1.19%
Volatility (1Y) Calculated over the trailing 1-year period	23.26%	23.48%	-0.22%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	22.15%	25.37%	-3.22%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	22.10%	24.71%	-2.61%

VPN vs. XLK - Expense Ratio Comparison

VPN has a 0.50% expense ratio, which is higher than XLK's 0.08% expense ratio.

Dividends

VPN vs. XLK - Dividend Comparison

VPN's dividend yield for the trailing twelve months is around 0.74%, more than XLK's 0.43% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
VPN Global X Data Center REITs & Digital Infrastructure ETF	0.74%	1.10%	1.72%	1.18%	2.57%	1.27%	0.30%	0.00%	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 VPN and XLK in my portfolio?

VPN and XLK have a correlation of 0.70, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, VPN or XLK?

XLK has higher volatility (12.51%) compared to VPN (9.71%). In terms of maximum drawdown, VPN dropped -38.98% vs XLK's -82.05%.

Which ETF is better, VPN or XLK?

On 5-year performance, XLK leads with 21.34% vs 14.82% for VPN. On fees, XLK is cheaper at 0.08% per year. On volatility, VPN has been the lower-risk option at 9.71%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, VPN or XLK?

Over the 5-year period, XLK has performed better with a 21.34% return vs 14.82%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, VPN or XLK?

XLK is cheaper with a 0.08% expense ratio, compared with 0.50% for VPN.

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

VPN has the higher dividend yield at 0.74%, compared with 0.43% for XLK.

What is the main difference between VPN and XLK?

VPN tracks Solactive Data Center REITs & Digital Infrastructure Index, while XLK tracks S&P Technology Select Sector Daily Capped 35/20 Index. They also come from different issuers: Global X and State Street. Their fees differ too: 0.50% for VPN and 0.08% for XLK.

Which has better risk-adjusted returns?

VPN currently has the higher Sharpe Ratio (3.19 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.