XLI vs. ARKK

Last updated Jul 21, 2026

XLI (Industrial Select Sector SPDR Fund) and ARKK (ARK Innovation ETF) are both exchange-traded funds - XLI is a Industrials Equities fund tracking the Industrial Select Sector Index, while ARKK is a Technology Equities fund actively managed by ARK. XLI is passively managed, while ARKK is actively managed. Over the past 10 years, XLI returned 13.76%/yr vs 14.94%/yr for ARKK. A 0.51 correlation means they provide meaningful diversification when combined. XLI charges 0.08%/yr vs 0.75%/yr for ARKK.

Performance

XLI vs. ARKK - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in Industrial Select Sector SPDR Fund (XLI) and ARK Innovation ETF (ARKK). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, XLI achieves a 15.43% return, which is significantly higher than ARKK's -2.56% return. Over the past 10 years, XLI has underperformed ARKK with an annualized return of 13.76%, while ARKK has yielded a comparatively higher 14.94% annualized return.

XLI

• 1D: -0.72%
• 1M: -1.30%
• 6M: 7.29%
• YTD: 15.43%
• 1Y: 19.12%
• 3Y*: 19.29%
• 5Y*: 13.15%
• 10Y*: 13.76%
• ALL TIME*: 9.61%

ARKK

• 1D: -0.33%
• 1M: -6.53%
• 6M: -8.24%
• YTD: -2.56%
• 1Y: -3.45%
• 3Y*: 16.39%
• 5Y*: -9.13%
• 10Y*: 14.94%
• ALL TIME*: 12.69%

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

XLI vs. ARKK - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
XLI Industrial Select Sector SPDR Fund	15.43%	19.35%	17.31%	18.13%	-5.57%	21.08%	10.91%	29.08%	-13.25%	23.98%
ARKK ARK Innovation ETF	-2.56%	35.49%	8.40%	69.04%	-66.97%	-23.60%	152.71%	35.08%	3.52%	87.33%

Correlation

The correlation between XLI and ARKK is 0.54, 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	0.54
Correlation (3Y) Calculated over the trailing 3-year period	0.59
Correlation (5Y) Calculated over the trailing 5-year period	0.57
Correlation (10Y) Calculated over the trailing 10-year period	0.51
Correlation (All Time) Calculated using the full available price history since Oct 31, 2014	0.51

The correlation between XLI and ARKK has been stable across timeframes, ranging from 0.51 to 0.59 - a consistent structural relationship.

XLI vs. ARKK - Sectors Allocation Comparison

Sectors	XLI	ARKK
Industrials	93.3%	9.4%
Technology	6.3%	25.8%
Utilities	5.3%	-
Consumer Cyclical	0.2%	13.0%
Basic Materials	0.1%	-
Communication Services	-	7.1%
Consumer Defensive	-	-
Energy	-	-
Financial Services	-	12.8%
Healthcare	-	32.0%
Real Estate	-	-

Return for Risk

XLI vs. ARKK — Risk / Return Rank

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

XLI

XLI Risk / Return Rank: 43
XLI Sharpe Ratio Rank: 43
XLI Sortino Ratio Rank: 43
XLI Omega Ratio Rank: 39
XLI Calmar Ratio Rank: 40
XLI Martin Ratio Rank: 49

ARKK

ARKK Risk / Return Rank: 9
ARKK Sharpe Ratio Rank: 9
ARKK Sortino Ratio Rank: 10
ARKK Omega Ratio Rank: 10
ARKK Calmar Ratio Rank: 9
ARKK Martin Ratio Rank: 9

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.

XLI vs. ARKK - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Industrial Select Sector SPDR Fund (XLI) and ARK Innovation ETF (ARKK). 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.

	XLI	ARKK	Difference
Sharpe ratio: Return per unit of total volatility	1.15	-0.10	+1.25
Sortino ratio: Return per unit of downside risk	1.71	0.12	+1.60
Omega ratio: Gain probability vs. loss probability	1.20	1.01	+0.19
Calmar ratio: Return relative to maximum drawdown	1.57	-0.11	+1.68
Martin ratio: Return relative to average drawdown	6.09	-0.23	+6.32

XLI vs. ARKK - Sharpe Ratio Comparison

The current XLI Sharpe Ratio is 1.15, which is higher than the ARKK Sharpe Ratio of -0.10. The chart below compares the historical Sharpe Ratios of XLI and ARKK, 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

XLI vs. ARKK - Drawdown Comparison

The maximum XLI drawdown since its inception was -62.26%, smaller than the maximum ARKK drawdown of -80.97%. Use the drawdown chart below to compare losses from any high point for XLI and ARKK.

Drawdown Indicators

	XLI	ARKK	Difference
Max Drawdown Largest peak-to-trough decline	-62.26%	-80.97%	+18.71%
Max Drawdown (1Y) Largest decline over 1 year	-12.21%	-31.35%	+19.14%
Max Drawdown (3Y) Largest decline over 3 years	-18.49%	-39.56%	+21.07%
Max Drawdown (5Y) Largest decline over 5 years	-21.64%	-76.27%	+54.63%
Max Drawdown (10Y) Largest decline over 10 years	-42.33%	-80.97%	+38.64%
Current Drawdown Current decline from peak	-4.01%	-51.47%	+47.46%
Average Drawdown Average peak-to-trough decline	-9.17%	-30.31%	+21.14%
Ulcer Index Depth and duration of drawdowns from previous peaks	3.15%	15.08%	-11.93%

Volatility

XLI vs. ARKK - Volatility Comparison

The current volatility for Industrial Select Sector SPDR Fund (XLI) is 5.03%, while ARK Innovation ETF (ARKK) has a volatility of 9.21%. This indicates that XLI experiences smaller price fluctuations and is considered to be less risky than ARKK based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	XLI	ARKK	Difference
Volatility (1M) Calculated over the trailing 1-month period	5.03%	9.21%	-4.18%
Volatility (6M) Calculated over the trailing 6-month period	13.80%	27.14%	-13.34%
Volatility (1Y) Calculated over the trailing 1-year period	16.68%	36.37%	-19.69%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	17.53%	46.49%	-28.96%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	20.01%	40.43%	-20.42%

XLI vs. ARKK - Expense Ratio Comparison

XLI has a 0.08% expense ratio, which is lower than ARKK's 0.75% expense ratio.

Dividends

XLI vs. ARKK - Dividend Comparison

XLI's dividend yield for the trailing twelve months is around 1.16%, while ARKK has not paid dividends to shareholders.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
ARKK ARK Innovation ETF	0.00%	0.00%	0.00%	0.70%	0.00%	0.55%	1.64%	0.38%	3.14%	1.32%	0.00%	2.27%
XLI Industrial Select Sector SPDR Fund	1.16%	1.29%	1.44%	1.63%	1.63%	1.25%	1.55%	1.94%	2.15%	1.77%	2.07%	2.15%

Frequently Asked Questions

Can I hold both XLI and ARKK in my portfolio?

XLI and ARKK have a correlation of 0.54, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, XLI or ARKK?

ARKK has higher volatility (9.21%) compared to XLI (5.03%). In terms of maximum drawdown, XLI dropped -62.26% vs ARKK's -80.97%.

Which ETF is better, XLI or ARKK?

On 10-year performance, ARKK leads with 14.94% vs 13.76% for XLI. On fees, XLI is cheaper at 0.08% per year. On volatility, XLI has been the lower-risk option at 5.03%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, XLI or ARKK?

Over the 10-year period, ARKK has performed better with a 14.94% return vs 13.76%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, XLI or ARKK?

XLI is cheaper with a 0.08% expense ratio, compared with 0.75% for ARKK.

Which ETF pays a higher dividend yield, XLI or ARKK?

XLI has the higher dividend yield at 1.16%, compared with 0.00% for ARKK.

What is the main difference between XLI and ARKK?

XLI is categorized as Industrials Equities, while ARKK is Technology Equities. They also come from different issuers: State Street and ARK. Their fees differ too: 0.08% for XLI and 0.75% for ARKK.

Which has better risk-adjusted returns?

XLI currently has the higher Sharpe Ratio (1.15 vs -0.10), 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.