XLE vs. XLK

Last updated Aug 1, 2026

XLE (State Street Energy Select Sector SPDR ETF) and XLK (State Street Technology Select Sector SPDR ETF) are both exchange-traded funds - XLE is a Energy Equities fund tracking the Energy Select Sector 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, XLE returned 10.52%/yr vs 23.77%/yr for XLK. Their 0.37 correlation means their historical movements had little consistent relationship. Both charge a 0.08% expense ratio.

Performance

XLE vs. XLK - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in State Street Energy Select Sector SPDR ETF (XLE) 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, XLE achieves a 35.03% return, which is significantly higher than XLK's 22.09% return. Over the past 10 years, XLE has underperformed XLK with an annualized return of 10.52%, while XLK has yielded a comparatively higher 23.77% annualized return.

XLE

• 1D: 1.00%
• 1M: 12.76%
• 6M: 18.26%
• YTD: 35.03%
• 1Y: 40.82%
• 3Y*: 14.62%
• 5Y*: 23.67%
• 10Y*: 10.52%
• ALL TIME*: 8.87%

XLK

• 1D: -0.22%
• 1M: -5.53%
• 6M: 22.17%
• YTD: 22.09%
• 1Y: 34.18%
• 3Y*: 26.04%
• 5Y*: 18.87%
• 10Y*: 23.77%
• ALL TIME*: 10.21%

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

Liquidity Comparison

Position	Avg. Volume Value (2W)	Avg. Volume Value (1M)	Avg. Volume Value (3M)
XLE State Street Energy Select Sector SPDR ETF	$1.70B	$1.73B	$1.97B
XLK State Street Technology Select Sector SPDR ETF	$1.61B	$1.67B	$2.22B

XLE vs. XLK - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
XLE State Street Energy Select Sector SPDR ETF	35.03%	7.88%	5.56%	-0.63%	64.32%	53.28%	-32.67%	11.74%	-18.22%	-0.89%
XLK State Street Technology Select Sector SPDR ETF	22.09%	24.61%	21.63%	56.02%	-27.73%	34.74%	43.62%	49.86%	-1.68%	34.26%

Correlation

The correlation between XLE and XLK is -0.14, meaning they have often moved in opposite directions in the past. This relationship can weaken or reverse as market conditions change.

	Correlation
Correlation (1Y) Focuses on recent behavior, but can change the most.	-0.14
Correlation (3Y) Balances recent behavior with more history.	0.04
Correlation (5Y) Shows whether the relationship held over a longer period.	0.16
Correlation (10Y) Provides a long-term view across more market conditions.	0.26
Correlation (All Time) Calculated using the full available price history since Dec 22, 1998	0.37

The correlation between XLE and XLK shifts across timeframes, from -0.14 (1 year) to 0.37 (all time), reflecting how their relationship changes across market environments.

XLE vs. XLK - Sectors Allocation Comparison

Sectors	XLE	XLK
Energy	100.0%	0.2%
Basic Materials	-	-
Communication Services	-	0.9%
Consumer Cyclical	-	-
Consumer Defensive	-	-
Financial Services	-	-
Healthcare	-	-
Industrials	-	0.1%
Real Estate	-	-
Technology	-	99.1%
Utilities	-	-

Return for Risk

XLE vs. XLK — Risk / Return Rank

Compare historical risk-adjusted metric ranks over the past 12 months.

XLE

XLE Risk / Return Rank: 76
XLE Sharpe Ratio Rank: 84
XLE Sortino Ratio Rank: 79
XLE Omega Ratio Rank: 76
XLE Calmar Ratio Rank: 78
XLE Martin Ratio Rank: 62

XLK

XLK Risk / Return Rank: 55
XLK Sharpe Ratio Rank: 57
XLK Sortino Ratio Rank: 53
XLK Omega Ratio Rank: 52
XLK Calmar Ratio Rank: 62
XLK Martin Ratio Rank: 50

The rank (0–100) uses a weighted average of the Sharpe, Sortino, Omega, Calmar, and Martin percentile ranks for the trailing 12 months. Higher means stronger historical risk-adjusted performance within the peer group.

XLE vs. XLK - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for State Street Energy Select Sector SPDR ETF (XLE) 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.

	XLE	XLK	Difference
Sharpe ratio: Return per unit of total volatility	1.95	1.34	+0.61
Sortino ratio: Return per unit of downside risk	2.53	1.85	+0.67
Omega ratio: Gain probability vs. loss probability	1.32	1.23	+0.08
Calmar ratio: Return relative to maximum drawdown	2.74	2.16	+0.58
Martin ratio: Return relative to average drawdown	7.32	5.85	+1.46

XLE vs. XLK - Sharpe Ratio Comparison

The current XLE Sharpe Ratio is 1.95, which is higher than the XLK Sharpe Ratio of 1.34. The chart below compares the historical Sharpe Ratios of XLE 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

XLE vs. XLK - Drawdown Comparison

The maximum XLE drawdown since its inception was -71.26%, smaller than the maximum XLK drawdown of -82.05%. Use the drawdown chart below to compare losses from any high point for XLE and XLK.

Drawdown Indicators

	XLE	XLK	Difference
Max Drawdown Largest peak-to-trough decline	-71.26%	-82.05%	+10.79%
Max Drawdown (1Y) Largest decline over 1 year	-14.98%	-15.92%	+0.94%
Max Drawdown (3Y) Largest decline over 3 years	-20.14%	-25.66%	+5.52%
Max Drawdown (5Y) Largest decline over 5 years	-26.04%	-33.56%	+7.52%
Max Drawdown (10Y) Largest decline over 10 years	-66.81%	-33.56%	-33.25%
Current Drawdown Current decline from peak	-4.13%	-11.43%	+7.30%
Average Drawdown Average peak-to-trough decline	-17.93%	-34.80%	+16.87%
Ulcer Index Depth and duration of drawdowns from previous peaks	5.62%	5.86%	-0.24%

Volatility

XLE vs. XLK - Volatility Comparison

The current volatility for State Street Energy Select Sector SPDR ETF (XLE) is 5.85%, while State Street Technology Select Sector SPDR ETF (XLK) has a volatility of 9.58%. This indicates that XLE 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

	XLE	XLK	Difference
Volatility (1M) Calculated over the trailing 1-month period	5.85%	9.58%	-3.73%
Volatility (6M) Calculated over the trailing 6-month period	16.71%	21.81%	-5.10%
Volatility (1Y) Calculated over the trailing 1-year period	21.05%	25.59%	-4.54%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	25.77%	25.75%	+0.02%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	29.57%	24.90%	+4.67%

XLE vs. XLK - Expense Ratio Comparison

Both XLE and XLK have an expense ratio of 0.08%, making them cost-effective options compared to the broader market, where average expense ratios typically range from 0.3% to 0.9%.

Dividends

XLE vs. XLK - Dividend Comparison

XLE's dividend yield for the trailing twelve months is around 2.55%, more than XLK's 0.45% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
XLE State Street Energy Select Sector SPDR ETF	2.55%	3.28%	3.36%	3.55%	3.68%	4.21%	5.62%	6.72%	3.54%	3.03%	2.26%	3.39%
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 XLE and XLK in my portfolio?

XLE and XLK have a correlation of -0.14, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, XLE or XLK?

XLK has higher volatility (9.58%) compared to XLE (5.85%). In terms of maximum drawdown, XLE dropped -71.26% vs XLK's -82.05%.

Which ETF is better, XLE or XLK?

On 10-year performance, XLK leads with 23.77% vs 10.52% for XLE. Both ETFs have the same 0.08% expense ratio. On volatility, XLE has been the lower-risk option at 5.85%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, XLE or XLK?

Over the 10-year period, XLK has performed better with a 23.77% return vs 10.52%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, XLE or XLK?

XLE and XLK have the same expense ratio: 0.08% per year.

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

XLE has the higher dividend yield at 2.55%, compared with 0.45% for XLK.

What is the main difference between XLE and XLK?

XLE is categorized as Energy Equities, while XLK is Technology Equities. XLE tracks Energy Select Sector Index, while XLK tracks S&P Technology Select Sector Daily Capped 35/20 Index.

Which has better risk-adjusted returns?

XLE currently has the higher Sharpe Ratio (1.95 vs 1.34), 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.