XLK vs. CDX
XLK (State Street Technology Select Sector SPDR ETF) and CDX (Simplify High Yield PLUS Credit Hedge 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 CDX is a High Yield Bonds fund actively managed by Simplify. XLK is passively managed, while CDX is actively managed. Over the past 3 years, XLK returned 30.28%/yr vs 7.84%/yr for CDX. At a 0.38 correlation, their price movements are largely independent. XLK charges 0.08%/yr vs 0.26%/yr for CDX.
Performance
XLK vs. CDX - Performance Comparison
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Returns By Period
In the year-to-date period, XLK achieves a 28.52% return, which is significantly higher than CDX's -1.56% 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%
CDX
- 1D
- -0.09%
- 1M
- 0.33%
- YTD
- -1.56%
- 6M
- -1.47%
- 1Y
- -0.54%
- 3Y*
- 7.84%
- 5Y*
- —
- 10Y*
- —
XLK vs. CDX - Yearly Performance Comparison
| 2026 (YTD) | 2025 | 2024 | 2023 | 2022 | |
|---|---|---|---|---|---|
XLK State Street Technology Select Sector SPDR ETF | 28.52% | 24.61% | 21.63% | 56.02% | -18.84% |
CDX Simplify High Yield PLUS Credit Hedge ETF | -1.56% | 9.51% | 7.71% | 12.74% | -8.26% |
Correlation
The correlation between XLK and CDX is 0.19, which is low. Their price movements are largely independent, making them effective diversification partners.
| Correlation | |
|---|---|
Correlation (1Y) Calculated over the trailing 1-year period | 0.19 |
Correlation (3Y) Calculated over the trailing 3-year period | 0.22 |
Correlation (All Time) Calculated using the full available price history since Feb 15, 2022 | 0.38 |
The correlation between XLK and CDX shifts across timeframes, from 0.19 (1 year) to 0.38 (all time), reflecting how their relationship changes across market environments.
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Return for Risk
XLK vs. CDX — Risk / Return Rank
XLK
CDX
XLK vs. CDX - Risk-Adjusted Trends Comparison
This table presents a comparison of risk-adjusted performance metrics for State Street Technology Select Sector SPDR ETF (XLK) and Simplify High Yield PLUS Credit Hedge ETF (CDX). 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 | CDX | Difference | |
|---|---|---|---|
| Sharpe ratioReturn per unit of total volatility | +2.50 | ||
| Sortino ratioReturn per unit of downside risk | +3.05 | ||
| Omega ratioGain probability vs. loss probability | 1.39 | 0.98 | +0.41 |
| Calmar ratioReturn relative to maximum drawdown | 3.36 | -0.17 | +3.53 |
| Martin ratioReturn relative to average drawdown | 10.85 | -0.39 | +11.24 |
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Drawdowns
XLK vs. CDX - Drawdown Comparison
The maximum XLK drawdown since its inception was -82.05%, which is greater than CDX's maximum drawdown of -13.24%. Use the drawdown chart below to compare losses from any high point for XLK and CDX.
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Drawdown Indicators
| XLK | CDX | Difference | |
|---|---|---|---|
Max DrawdownLargest peak-to-trough decline | -82.05% | -13.24% | -68.81% |
Max Drawdown (1Y)Largest decline over 1 year | -15.92% | -4.18% | -11.74% |
Max Drawdown (3Y)Largest decline over 3 years | -25.66% | -8.88% | -16.78% |
Max Drawdown (5Y)Largest decline over 5 years | -33.56% | — | — |
Max Drawdown (10Y)Largest decline over 10 years | -33.56% | — | — |
Current DrawdownCurrent decline from peak | -6.77% | -6.57% | -0.20% |
Average DrawdownAverage peak-to-trough decline | -34.93% | -4.35% | -30.58% |
Ulcer IndexDepth and duration of drawdowns from previous peaks | 4.92% | 1.85% | +3.07% |
Volatility
XLK vs. CDX - Volatility Comparison
State Street Technology Select Sector SPDR ETF (XLK) has a higher volatility of 10.86% compared to Simplify High Yield PLUS Credit Hedge ETF (CDX) at 1.73%. This indicates that XLK's price experiences larger fluctuations and is considered to be riskier than CDX based on this measure. The chart below showcases a comparison of their rolling one-month volatility.
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Volatility by Period
| XLK | CDX | Difference | |
|---|---|---|---|
Volatility (1M)Calculated over the trailing 1-month period | 10.86% | 1.73% | +9.13% |
Volatility (6M)Calculated over the trailing 6-month period | 18.92% | 4.81% | +14.11% |
Volatility (1Y)Calculated over the trailing 1-year period | 22.55% | 5.80% | +16.75% |
Volatility (5Y)Calculated over the trailing 5-year period, annualized | 25.18% | 11.08% | +14.10% |
Volatility (10Y)Calculated over the trailing 10-year period, annualized | 24.64% | 11.08% | +13.56% |
XLK vs. CDX - Expense Ratio Comparison
XLK has a 0.08% expense ratio, which is lower than CDX's 0.26% expense ratio. Despite the difference, both funds are considered low-cost compared to the broader market, where average expense ratios usually range from 0.3% to 0.9%.
Dividends
XLK vs. CDX - Dividend Comparison
XLK's dividend yield for the trailing twelve months is around 0.41%, less than CDX's 8.29% yield.
| Position | TTM | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
CDX Simplify High Yield PLUS Credit Hedge ETF | 8.29% | 7.18% | 12.60% | 5.26% | 7.51% | 0.00% | 0.00% | 0.00% | 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
XLK and CDX have a correlation of 0.19, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.
XLK has higher volatility (10.86%) compared to CDX (1.73%). In terms of maximum drawdown, XLK dropped -82.05% vs CDX's -13.24%.
On 3-year performance, XLK leads with 30.28% vs 7.84% for CDX. On fees, XLK is cheaper at 0.08% per year. On volatility, CDX has been the lower-risk option at 1.73%. The better choice depends on whether you care most about return, fees, risk, or income.
Over the 3-year period, XLK has performed better with a 30.28% return vs 7.84%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.
XLK is cheaper with a 0.08% expense ratio, compared with 0.26% for CDX.
CDX has the higher dividend yield at 8.29%, compared with 0.41% for XLK.
XLK is categorized as Technology Equities, while CDX is High Yield Bonds. They also come from different issuers: State Street and Simplify. Their fees differ too: 0.08% for XLK and 0.26% for CDX.
XLK currently has the higher Sharpe Ratio (2.37 vs -0.12), 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.
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