XBI vs. XLK

Last updated Jul 17, 2026

XBI (SPDR S&P Biotech ETF) and XLK (State Street Technology Select Sector SPDR ETF) are both exchange-traded funds - XBI is a Health & Biotech Equities fund tracking the S&P Biotechnology Select Industry Index, while XLK is a Technology Equities fund tracking the S&P Technology Select Sector Daily Capped 35/20 Index. Both are passively managed. Over the past 10 years, XBI returned 10.37%/yr vs 24.16%/yr for XLK. A 0.54 correlation means they provide meaningful diversification when combined. XBI charges 0.35%/yr vs 0.08%/yr for XLK.

Performance

XBI vs. XLK - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in SPDR S&P Biotech ETF (XBI) and State Street Technology Select Sector SPDR ETF (XLK). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

The year-to-date returns for both stocks are quite close, with XBI having a 24.78% return and XLK slightly lower at 23.60%. Over the past 10 years, XBI has underperformed XLK with an annualized return of 10.37%, while XLK has yielded a comparatively higher 24.16% annualized return.

XBI

• 1D: -2.70%
• 1M: 12.42%
• 6M: 22.36%
• YTD: 24.78%
• 1Y: 73.87%
• 3Y*: 21.27%
• 5Y*: 3.96%
• 10Y*: 10.37%

XLK

• 1D: -2.24%
• 1M: -4.67%
• 6M: 22.34%
• YTD: 23.60%
• 1Y: 37.95%
• 3Y*: 26.66%
• 5Y*: 19.65%
• 10Y*: 24.16%

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

XBI vs. XLK - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
XBI SPDR S&P Biotech ETF	24.78%	35.89%	1.01%	7.60%	-25.87%	-20.45%	48.33%	32.56%	-15.28%	43.77%
XLK State Street Technology Select Sector SPDR ETF	23.60%	24.61%	21.63%	56.02%	-27.73%	34.74%	43.62%	49.86%	-1.68%	34.26%

Correlation

The correlation between XBI and XLK is 0.34, which is low. Their price movements are largely independent, making them effective diversification partners.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	0.34
Correlation (3Y) Calculated over the trailing 3-year period	0.41
Correlation (5Y) Calculated over the trailing 5-year period	0.48
Correlation (10Y) Calculated over the trailing 10-year period	0.51
Correlation (All Time) Calculated using the full available price history since Feb 6, 2006	0.54

Over the past year, the correlation between XBI and XLK has dropped to 0.34 - well below their long-term average of 0.54, suggesting their price drivers have been diverging.

XBI vs. XLK - Sectors Allocation Comparison

Sectors	XBI	XLK
Healthcare	99.7%	-
Financial Services	0.3%	-
Basic Materials	0.2%	-
Communication Services	-	-
Consumer Cyclical	-	-
Consumer Defensive	-	-
Energy	-	0.2%
Industrials	-	0.1%
Real Estate	-	-
Technology	-	99.7%
Utilities	-	-

Return for Risk

XBI vs. XLK — Risk / Return Rank

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

XBI

XBI Risk / Return Rank: 93
XBI Sharpe Ratio Rank: 94
XBI Sortino Ratio Rank: 92
XBI Omega Ratio Rank: 88
XBI Calmar Ratio Rank: 96
XBI Martin Ratio Rank: 95

XLK

XLK Risk / Return Rank: 54
XLK Sharpe Ratio Rank: 57
XLK Sortino Ratio Rank: 51
XLK Omega Ratio Rank: 51
XLK Calmar Ratio Rank: 59
XLK Martin Ratio Rank: 52

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.

XBI vs. XLK - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for SPDR S&P Biotech ETF (XBI) 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.

	XBI	XLK	Difference
Sharpe ratio: Return per unit of total volatility	2.79	1.55	+1.24
Sortino ratio: Return per unit of downside risk	3.62	2.04	+1.57
Omega ratio: Gain probability vs. loss probability	1.43	1.26	+0.17
Calmar ratio: Return relative to maximum drawdown	7.64	2.39	+5.24
Martin ratio: Return relative to average drawdown	22.09	7.13	+14.97

XBI vs. XLK - Sharpe Ratio Comparison

The current XBI Sharpe Ratio is 2.79, which is higher than the XLK Sharpe Ratio of 1.55. The chart below compares the historical Sharpe Ratios of XBI 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

XBI vs. XLK - Drawdown Comparison

The maximum XBI drawdown since its inception was -63.89%, smaller than the maximum XLK drawdown of -82.05%. Use the drawdown chart below to compare losses from any high point for XBI and XLK.

Drawdown Indicators

	XBI	XLK	Difference
Max Drawdown Largest peak-to-trough decline	-63.89%	-82.05%	+18.16%
Max Drawdown (1Y) Largest decline over 1 year	-9.72%	-15.92%	+6.20%
Max Drawdown (3Y) Largest decline over 3 years	-32.99%	-25.66%	-7.33%
Max Drawdown (5Y) Largest decline over 5 years	-54.00%	-33.56%	-20.44%
Max Drawdown (10Y) Largest decline over 10 years	-63.89%	-33.56%	-30.33%
Current Drawdown Current decline from peak	-12.06%	-10.33%	-1.73%
Average Drawdown Average peak-to-trough decline	-20.89%	-34.84%	+13.95%
Ulcer Index Depth and duration of drawdowns from previous peaks	3.35%	5.34%	-1.99%

Volatility

XBI vs. XLK - Volatility Comparison

The current volatility for SPDR S&P Biotech ETF (XBI) is 8.50%, while State Street Technology Select Sector SPDR ETF (XLK) has a volatility of 9.89%. This indicates that XBI 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

	XBI	XLK	Difference
Volatility (1M) Calculated over the trailing 1-month period	8.50%	9.89%	-1.39%
Volatility (6M) Calculated over the trailing 6-month period	21.51%	20.95%	+0.56%
Volatility (1Y) Calculated over the trailing 1-year period	26.65%	24.54%	+2.11%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	32.33%	25.58%	+6.75%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	31.93%	24.80%	+7.13%

XBI vs. XLK - Expense Ratio Comparison

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

Dividends

XBI vs. XLK - Dividend Comparison

XBI's dividend yield for the trailing twelve months is around 0.38%, less than XLK's 0.45% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
XBI SPDR S&P Biotech ETF	0.38%	0.37%	0.15%	0.02%	0.00%	0.04%	0.20%	0.00%	0.28%	0.24%	0.26%	0.61%
XLK State Street Technology Select Sector SPDR ETF	0.45%	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 XBI and XLK in my portfolio?

XBI and XLK have a correlation of 0.34, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, XBI or XLK?

XLK has higher volatility (9.89%) compared to XBI (8.50%). In terms of maximum drawdown, XBI dropped -63.89% vs XLK's -82.05%.

Which ETF is better, XBI or XLK?

On 10-year performance, XLK leads with 24.16% vs 10.37% for XBI. On fees, XLK is cheaper at 0.08% per year. On volatility, XBI has been the lower-risk option at 8.50%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, XBI or XLK?

Over the 10-year period, XLK has performed better with a 24.16% return vs 10.37%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, XBI or XLK?

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

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

XLK has the higher dividend yield at 0.45%, compared with 0.38% for XBI.

What is the main difference between XBI and XLK?

XBI is categorized as Health & Biotech Equities, while XLK is Technology Equities. XBI tracks S&P Biotechnology Select Industry Index, while XLK tracks S&P Technology Select Sector Daily Capped 35/20 Index. Their fees differ too: 0.35% for XBI and 0.08% for XLK.

Which has better risk-adjusted returns?

XBI currently has the higher Sharpe Ratio (2.79 vs 1.55), 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.