WISE vs. XLK

Last updated Jun 4, 2026

WISE (Themes Generative Artificial Intelligence ETF) and XLK (State Street Technology Select Sector SPDR ETF) are both Technology Equities funds - WISE tracks the Solactive Generative Artificial Intelligence 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 year, WISE returned 36.46% vs 66.93% for XLK. A 0.78 correlation means they provide meaningful diversification when combined. WISE charges 0.35%/yr vs 0.08%/yr for XLK.

Performance

WISE vs. XLK - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in Themes Generative Artificial Intelligence ETF (WISE) 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, WISE achieves a 11.03% return, which is significantly lower than XLK's 36.47% return.

WISE

• 1D: -3.13%
• 1M: 11.81%
• YTD: 11.03%
• 6M: 7.21%
• 1Y: 36.46%
• 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)

WISE vs. XLK - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023
WISE Themes Generative Artificial Intelligence ETF	11.03%	5.88%	40.45%	7.55%
XLK State Street Technology Select Sector SPDR ETF	36.47%	24.61%	21.63%	3.35%

Correlation

The correlation between WISE 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 Dec 11, 2023	0.78

The correlation between WISE and XLK has been stable across timeframes, ranging from 0.77 to 0.78 - a consistent structural relationship.

WISE vs. XLK - Sectors Allocation Comparison

Sectors	WISE	XLK
Technology	90.4%	99.7%
Consumer Cyclical	4.0%	-
Communication Services	3.2%	-
Industrials	1.5%	0.1%
Healthcare	0.7%	-
Utilities	0.3%	-
Basic Materials	-	-
Consumer Defensive	-	-
Energy	-	0.2%
Financial Services	-	-
Real Estate	-	-

Return for Risk

WISE vs. XLK — Risk / Return Rank

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

WISE

WISE Risk / Return Rank: 27
WISE Sharpe Ratio Rank: 31
WISE Sortino Ratio Rank: 30
WISE Omega Ratio Rank: 29
WISE Calmar Ratio Rank: 23
WISE Martin Ratio Rank: 21

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.

WISE vs. XLK - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Themes Generative Artificial Intelligence ETF (WISE) 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.

	WISE	XLK	Difference
Sharpe ratio: Return per unit of total volatility	1.14	3.24	-2.10
Sortino ratio: Return per unit of downside risk	1.64	3.92	-2.28
Omega ratio: Gain probability vs. loss probability	1.20	1.52	-0.32
Calmar ratio: Return relative to maximum drawdown	1.07	4.22	-3.15
Martin ratio: Return relative to average drawdown	2.58	14.16	-11.57
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month.

WISE vs. XLK - Sharpe Ratio Comparison

The current WISE Sharpe Ratio is 1.14, which is lower than the XLK Sharpe Ratio of 3.24. The chart below compares the historical Sharpe Ratios of WISE 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

	WISE	XLK	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	1.14	3.24	-2.10
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	0.78	0.42	+0.37

Drawdowns

WISE vs. XLK - Drawdown Comparison

The maximum WISE drawdown since its inception was -39.15%, smaller than the maximum XLK drawdown of -82.05%. Use the drawdown chart below to compare losses from any high point for WISE and XLK.

Drawdown Indicators

	WISE	XLK	Difference
Max Drawdown Largest peak-to-trough decline	-39.15%	-82.05%	+42.90%
Max Drawdown (1Y) Largest decline over 1 year	-34.08%	-15.92%	-18.16%
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	-5.48%	-1.00%	-4.48%
Average Drawdown Average peak-to-trough decline	-11.90%	-34.96%	+23.06%
Ulcer Index Depth and duration of drawdowns from previous peaks	14.15%	4.74%	+9.41%

Volatility

WISE vs. XLK - Volatility Comparison

Themes Generative Artificial Intelligence ETF (WISE) has a higher volatility of 10.83% compared to State Street Technology Select Sector SPDR ETF (XLK) at 6.98%. This indicates that WISE'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

	WISE	XLK	Difference
Volatility (1M) Calculated over the trailing 1-month period	10.83%	6.98%	+3.85%
Volatility (6M) Calculated over the trailing 6-month period	24.11%	16.68%	+7.43%
Volatility (1Y) Calculated over the trailing 1-year period	32.26%	20.82%	+11.44%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	33.55%	24.90%	+8.65%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	33.55%	24.49%	+9.06%

WISE vs. XLK - Expense Ratio Comparison

WISE has a 0.35% expense ratio, which is higher than XLK's 0.08% expense ratio.

Dividends

WISE vs. XLK - Dividend Comparison

WISE's dividend yield for the trailing twelve months is around 3.71%, more than XLK's 0.39% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
WISE Themes Generative Artificial Intelligence ETF	3.71%	4.12%	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	0.39%	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 WISE and XLK in my portfolio?

WISE 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, WISE or XLK?

WISE has higher volatility (10.83%) compared to XLK (6.98%). In terms of maximum drawdown, WISE dropped -39.15% vs XLK's -82.05%.

Which ETF is better, WISE or XLK?

On 1-year performance, XLK leads with 66.93% vs 36.46% for WISE. On fees, XLK is cheaper at 0.08% per year. On volatility, XLK has been the lower-risk option at 6.98%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, WISE or XLK?

Over the 1-year period, XLK has performed better with a 66.93% return vs 36.46%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, WISE or XLK?

XLK is cheaper with a 0.08% expense ratio, compared with 0.35% for WISE.

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

WISE has the higher dividend yield at 3.71%, compared with 0.39% for XLK.

What is the main difference between WISE and XLK?

WISE tracks Solactive Generative Artificial Intelligence Index - Benchmark TR Gross, while XLK tracks S&P Technology Select Sector Daily Capped 35/20 Index. They also come from different issuers: Themes and State Street. Their fees differ too: 0.35% for WISE and 0.08% for XLK.

Which has better risk-adjusted returns?

XLK currently has the higher Sharpe Ratio (3.24 vs 1.14), 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.