XLK vs. FMTM

Last updated Jul 12, 2026

XLK (State Street Technology Select Sector SPDR ETF) and FMTM (MarketDesk Focused U.S. Momentum 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 FMTM is a Momentum fund. XLK is passively managed, while FMTM is actively managed. Over the past year, XLK returned 45.99% vs 54.93% for FMTM. A 0.71 correlation means they provide meaningful diversification when combined. XLK charges 0.08%/yr vs 0.45%/yr for FMTM.

Performance

XLK vs. FMTM - Performance Comparison

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

Returns By Period

In the year-to-date period, XLK achieves a 29.35% return, which is significantly higher than FMTM's 26.52% return.

XLK

• 1D: 0.23%
• 1M: 1.52%
• 6M: 27.43%
• YTD: 29.35%
• 1Y: 45.99%
• 3Y*: 30.12%
• 5Y*: 20.60%
• 10Y*: 24.88%

FMTM

• 1D: -0.66%
• 1M: -1.05%
• 6M: 19.24%
• YTD: 26.52%
• 1Y: 54.93%
• 3Y*: —
• 5Y*: —
• 10Y*: —

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

XLK vs. FMTM - Yearly Performance Comparison

	2026 (YTD)	2025
XLK State Street Technology Select Sector SPDR ETF	29.35%	34.82%
FMTM MarketDesk Focused U.S. Momentum ETF	26.52%	28.21%

Correlation

The correlation between XLK and FMTM is 0.79, 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	0.79
Correlation (All Time) Calculated using the full available price history since Mar 20, 2025	0.71

The correlation between XLK and FMTM has been stable across timeframes, ranging from 0.71 to 0.79 - a consistent structural relationship.

Return for Risk

XLK vs. FMTM — Risk / Return Rank

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

XLK

XLK Risk / Return Rank: 68
XLK Sharpe Ratio Rank: 73
XLK Sortino Ratio Rank: 64
XLK Omega Ratio Rank: 66
XLK Calmar Ratio Rank: 72
XLK Martin Ratio Rank: 62

FMTM

FMTM Risk / Return Rank: 82
FMTM Sharpe Ratio Rank: 83
FMTM Sortino Ratio Rank: 73
FMTM Omega Ratio Rank: 75
FMTM Calmar Ratio Rank: 90
FMTM Martin Ratio Rank: 90

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. FMTM - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for State Street Technology Select Sector SPDR ETF (XLK) and MarketDesk Focused U.S. Momentum ETF (FMTM). 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	FMTM	Difference
Sharpe ratio: Return per unit of total volatility	1.88	2.10	-0.23
Sortino ratio: Return per unit of downside risk	2.39	2.62	-0.23
Omega ratio: Gain probability vs. loss probability	1.32	1.35	-0.03
Calmar ratio: Return relative to maximum drawdown	2.86	4.46	-1.59
Martin ratio: Return relative to average drawdown	8.70	15.90	-7.21

XLK vs. FMTM - Sharpe Ratio Comparison

The current XLK Sharpe Ratio is 1.88, which is comparable to the FMTM Sharpe Ratio of 2.10. The chart below compares the historical Sharpe Ratios of XLK and FMTM, 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. FMTM - Drawdown Comparison

The maximum XLK drawdown since its inception was -82.05%, which is greater than FMTM's maximum drawdown of -12.12%. Use the drawdown chart below to compare losses from any high point for XLK and FMTM.

Drawdown Indicators

	XLK	FMTM	Difference
Max Drawdown Largest peak-to-trough decline	-82.05%	-12.12%	-69.93%
Max Drawdown (1Y) Largest decline over 1 year	-15.92%	-12.12%	-3.80%
Max Drawdown (3Y) Largest decline over 3 years	-25.66%	—	—
Max Drawdown (5Y) Largest decline over 5 years	-33.56%	—	—
Max Drawdown (10Y) Largest decline over 10 years	-33.56%	—	—
Current Drawdown Current decline from peak	-6.16%	-6.83%	+0.67%
Average Drawdown Average peak-to-trough decline	-34.85%	-2.01%	-32.84%
Ulcer Index Depth and duration of drawdowns from previous peaks	5.23%	3.39%	+1.84%

Volatility

XLK vs. FMTM - Volatility Comparison

State Street Technology Select Sector SPDR ETF (XLK) and MarketDesk Focused U.S. Momentum ETF (FMTM) have volatilities of 10.98% and 11.40%, 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	FMTM	Difference
Volatility (1M) Calculated over the trailing 1-month period	10.98%	11.40%	-0.42%
Volatility (6M) Calculated over the trailing 6-month period	20.68%	20.31%	+0.37%
Volatility (1Y) Calculated over the trailing 1-year period	24.26%	25.66%	-1.40%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	25.52%	24.46%	+1.06%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	24.77%	24.46%	+0.31%

XLK vs. FMTM - Expense Ratio Comparison

XLK has a 0.08% expense ratio, which is lower than FMTM's 0.45% expense ratio.

Dividends

XLK vs. FMTM - Dividend Comparison

XLK's dividend yield for the trailing twelve months is around 0.43%, more than FMTM's 0.23% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
FMTM MarketDesk Focused U.S. Momentum ETF	0.23%	0.30%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%
XLK State Street Technology Select Sector SPDR ETF	0.43%	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 FMTM in my portfolio?

XLK and FMTM have a correlation of 0.79, 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 FMTM?

FMTM has higher volatility (11.40%) compared to XLK (10.98%). In terms of maximum drawdown, XLK dropped -82.05% vs FMTM's -12.12%.

Which ETF is better, XLK or FMTM?

On 1-year performance, FMTM leads with 54.93% vs 45.99% for XLK. On fees, XLK is cheaper at 0.08% per year. On volatility, XLK has been the lower-risk option at 10.98%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, XLK or FMTM?

Over the 1-year period, FMTM has performed better with a 54.93% return vs 45.99%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, XLK or FMTM?

XLK is cheaper with a 0.08% expense ratio, compared with 0.45% for FMTM.

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

XLK has the higher dividend yield at 0.43%, compared with 0.23% for FMTM.

What is the main difference between XLK and FMTM?

XLK is categorized as Technology Equities, while FMTM is Momentum. Their fees differ too: 0.08% for XLK and 0.45% for FMTM.

Which has better risk-adjusted returns?

FMTM currently has the higher Sharpe Ratio (2.10 vs 1.88), 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.