XLK vs. AVEM

Last updated Jun 13, 2026

XLK (State Street Technology Select Sector SPDR ETF) and AVEM (Avantis Emerging Markets Equity ETF) are both exchange-traded funds - XLK is a Technology Equities fund tracking the S&P Technology Select Sector Daily Capped 35/20 Index, while AVEM is a Emerging Markets Equities fund actively managed by Avantis. XLK is passively managed, while AVEM is actively managed. Over the past 5 years, XLK returned 22.02%/yr vs 9.66%/yr for AVEM. A 0.65 correlation means they provide meaningful diversification when combined. XLK charges 0.08%/yr vs 0.33%/yr for AVEM.

Performance

XLK vs. AVEM - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in State Street Technology Select Sector SPDR ETF (XLK) and Avantis Emerging Markets Equity ETF (AVEM). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, XLK achieves a 28.52% return, which is significantly higher than AVEM's 25.08% return.

XLK

• 1D: 0.87%
• 1M: 2.95%
• YTD: 28.52%
• 6M: 28.96%
• 1Y: 55.42%
• 3Y*: 30.28%
• 5Y*: 22.02%
• 10Y*: 25.19%

AVEM

• 1D: 0.42%
• 1M: 1.30%
• YTD: 25.08%
• 6M: 27.86%
• 1Y: 47.18%
• 3Y*: 24.04%
• 5Y*: 9.66%
• 10Y*: —

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

XLK vs. AVEM - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019
XLK State Street Technology Select Sector SPDR ETF	28.52%	24.61%	21.63%	56.02%	-27.73%	34.74%	43.62%	13.50%
AVEM Avantis Emerging Markets Equity ETF	25.08%	34.48%	7.49%	15.30%	-18.15%	5.16%	14.39%	10.40%

Correlation

The correlation between XLK and AVEM is 0.76, 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	0.76
Correlation (3Y) Calculated over the trailing 3-year period	0.64
Correlation (5Y) Calculated over the trailing 5-year period	0.64
Correlation (All Time) Calculated using the full available price history since Sep 19, 2019	0.65

The correlation between XLK and AVEM shifts across timeframes, from 0.64 (5 years) to 0.76 (1 year), reflecting how their relationship changes across market environments.

XLK vs. AVEM - Sectors Allocation Comparison

Sectors	XLK	AVEM
Technology	99.7%	32.3%
Energy	0.2%	5.1%
Industrials	0.1%	9.2%
Basic Materials	-	8.1%
Communication Services	-	5.4%
Consumer Cyclical	-	9.2%
Consumer Defensive	-	3.1%
Financial Services	-	20.7%
Healthcare	-	2.8%
Real Estate	-	1.6%
Utilities	-	2.6%

Return for Risk

XLK vs. AVEM — Risk / Return Rank

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

XLK

XLK Risk / Return Rank: 76
XLK Sharpe Ratio Rank: 85
XLK Sortino Ratio Rank: 76
XLK Omega Ratio Rank: 78
XLK Calmar Ratio Rank: 75
XLK Martin Ratio Rank: 68

AVEM

AVEM Risk / Return Rank: 77
AVEM Sharpe Ratio Rank: 78
AVEM Sortino Ratio Rank: 72
AVEM Omega Ratio Rank: 79
AVEM Calmar Ratio Rank: 77
AVEM Martin Ratio Rank: 79

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.

XLK vs. AVEM - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for State Street Technology Select Sector SPDR ETF (XLK) and Avantis Emerging Markets Equity ETF (AVEM). 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.

	XLK	AVEM	Difference
Sharpe ratio: Return per unit of total volatility	2.37	2.15	+0.23
Sortino ratio: Return per unit of downside risk	2.92	2.78	+0.13
Omega ratio: Gain probability vs. loss probability	1.39	1.40	-0.01
Calmar ratio: Return relative to maximum drawdown	3.36	3.46	-0.10
Martin ratio: Return relative to average drawdown	10.85	13.15	-2.30

XLK vs. AVEM - Sharpe Ratio Comparison

The current XLK Sharpe Ratio is 2.37, which is comparable to the AVEM Sharpe Ratio of 2.15. The chart below compares the historical Sharpe Ratios of XLK and AVEM, 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

XLK vs. AVEM - Drawdown Comparison

The maximum XLK drawdown since its inception was -82.05%, which is greater than AVEM's maximum drawdown of -36.05%. Use the drawdown chart below to compare losses from any high point for XLK and AVEM.

Drawdown Indicators

	XLK	AVEM	Difference
Max Drawdown Largest peak-to-trough decline	-82.05%	-36.05%	-46.00%
Max Drawdown (1Y) Largest decline over 1 year	-15.92%	-13.13%	-2.79%
Max Drawdown (3Y) Largest decline over 3 years	-25.66%	-18.02%	-7.64%
Max Drawdown (5Y) Largest decline over 5 years	-33.56%	-33.88%	+0.32%
Max Drawdown (10Y) Largest decline over 10 years	-33.56%	—	—
Current Drawdown Current decline from peak	-6.77%	-3.33%	-3.44%
Average Drawdown Average peak-to-trough decline	-34.93%	-10.07%	-24.86%
Ulcer Index Depth and duration of drawdowns from previous peaks	4.92%	3.45%	+1.47%

Volatility

XLK vs. AVEM - Volatility Comparison

State Street Technology Select Sector SPDR ETF (XLK) and Avantis Emerging Markets Equity ETF (AVEM) have volatilities of 10.86% and 10.91%, respectively, indicating that both stocks experience similar levels of price fluctuations. This suggests that the risk associated with both stocks, as measured by volatility, is nearly the same. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	XLK	AVEM	Difference
Volatility (1M) Calculated over the trailing 1-month period	10.86%	10.91%	-0.05%
Volatility (6M) Calculated over the trailing 6-month period	18.92%	18.79%	+0.13%
Volatility (1Y) Calculated over the trailing 1-year period	22.55%	21.17%	+1.38%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	25.18%	18.71%	+6.47%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	24.64%	20.76%	+3.88%

XLK vs. AVEM - Expense Ratio Comparison

XLK has a 0.08% expense ratio, which is lower than AVEM's 0.33% expense ratio.

Dividends

XLK vs. AVEM - Dividend Comparison

XLK's dividend yield for the trailing twelve months is around 0.41%, less than AVEM's 2.59% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
AVEM Avantis Emerging Markets Equity ETF	2.59%	2.45%	3.17%	3.06%	2.77%	2.61%	1.60%	0.35%	0.00%	0.00%	0.00%	0.00%
XLK State Street Technology Select Sector SPDR ETF	0.41%	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 XLK and AVEM in my portfolio?

XLK and AVEM have a correlation of 0.76, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, XLK or AVEM?

AVEM has higher volatility (10.91%) compared to XLK (10.86%). In terms of maximum drawdown, XLK dropped -82.05% vs AVEM's -36.05%.

Which ETF is better, XLK or AVEM?

On 5-year performance, XLK leads with 22.02% vs 9.66% for AVEM. On fees, XLK is cheaper at 0.08% per year. Their volatility is very similar. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, XLK or AVEM?

Over the 5-year period, XLK has performed better with a 22.02% return vs 9.66%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, XLK or AVEM?

XLK is cheaper with a 0.08% expense ratio, compared with 0.33% for AVEM.

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

AVEM has the higher dividend yield at 2.59%, compared with 0.41% for XLK.

What is the main difference between XLK and AVEM?

XLK is categorized as Technology Equities, while AVEM is Emerging Markets Equities. They also come from different issuers: State Street and Avantis. Their fees differ too: 0.08% for XLK and 0.33% for AVEM.

Which has better risk-adjusted returns?

XLK currently has the higher Sharpe Ratio (2.37 vs 2.15), 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.