XLK vs. FRDM

Last updated Jul 21, 2026

XLK (State Street Technology Select Sector SPDR ETF) and FRDM (Freedom 100 Emerging Markets 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 FRDM is a Emerging Markets Diversified fund tracking the Life + Liberty Freedom 100 Emerging Markets Index. Both are passively managed. Over the past 5 years, XLK returned 19.16%/yr vs 16.96%/yr for FRDM. A 0.65 correlation means they provide meaningful diversification when combined. XLK charges 0.08%/yr vs 0.49%/yr for FRDM.

Performance

XLK vs. FRDM - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in State Street Technology Select Sector SPDR ETF (XLK) and Freedom 100 Emerging Markets ETF (FRDM). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, XLK achieves a 22.34% return, which is significantly lower than FRDM's 26.86% return.

XLK

• 1D: 0.07%
• 1M: -8.11%
• 6M: 20.96%
• YTD: 22.34%
• 1Y: 35.41%
• 3Y*: 26.73%
• 5Y*: 19.16%
• 10Y*: 23.89%
• ALL TIME*: 10.23%

FRDM

• 1D: -0.48%
• 1M: -14.88%
• 6M: 16.73%
• YTD: 26.86%
• 1Y: 62.81%
• 3Y*: 29.03%
• 5Y*: 16.96%
• 10Y*: —
• ALL TIME*: 16.82%

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

XLK vs. FRDM - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019
XLK State Street Technology Select Sector SPDR ETF	22.34%	24.61%	21.63%	56.02%	-27.73%	34.74%	43.62%	24.12%
FRDM Freedom 100 Emerging Markets ETF	26.86%	61.27%	1.70%	22.77%	-14.45%	6.13%	16.90%	12.23%

Correlation

The correlation between XLK and FRDM 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	0.69
Correlation (5Y) Calculated over the trailing 5-year period	0.67
Correlation (All Time) Calculated using the full available price history since May 23, 2019	0.65

The correlation between XLK and FRDM shifts across timeframes, from 0.65 (all time) to 0.76 (1 year), reflecting how their relationship changes across market environments.

XLK vs. FRDM - Sectors Allocation Comparison

Sectors	XLK	FRDM
Technology	99.1%	8.2%
Communication Services	0.9%	0.6%
Energy	0.2%	1.7%
Industrials	0.1%	0.3%
Basic Materials	-	3.4%
Consumer Cyclical	-	3.6%
Consumer Defensive	-	0.9%
Financial Services	-	15.3%
Healthcare	-	0.1%
Real Estate	-	2.3%
Utilities	-	1.2%

Return for Risk

XLK vs. FRDM — Risk / Return Rank

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

XLK

XLK Risk / Return Rank: 54
XLK Sharpe Ratio Rank: 57
XLK Sortino Ratio Rank: 51
XLK Omega Ratio Rank: 52
XLK Calmar Ratio Rank: 60
XLK Martin Ratio Rank: 52

FRDM

FRDM Risk / Return Rank: 84
FRDM Sharpe Ratio Rank: 87
FRDM Sortino Ratio Rank: 77
FRDM Omega Ratio Rank: 83
FRDM Calmar Ratio Rank: 88
FRDM Martin Ratio Rank: 84

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. FRDM - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for State Street Technology Select Sector SPDR ETF (XLK) and Freedom 100 Emerging Markets ETF (FRDM). 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	FRDM	Difference
Sharpe ratio: Return per unit of total volatility	1.45	2.13	-0.68
Sortino ratio: Return per unit of downside risk	1.93	2.61	-0.68
Omega ratio: Gain probability vs. loss probability	1.25	1.38	-0.13
Calmar ratio: Return relative to maximum drawdown	2.23	3.74	-1.51
Martin ratio: Return relative to average drawdown	6.53	12.45	-5.92

XLK vs. FRDM - Sharpe Ratio Comparison

The current XLK Sharpe Ratio is 1.45, which is lower than the FRDM Sharpe Ratio of 2.13. The chart below compares the historical Sharpe Ratios of XLK and FRDM, 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. FRDM - Drawdown Comparison

The maximum XLK drawdown since its inception was -82.05%, which is greater than FRDM's maximum drawdown of -40.49%. Use the drawdown chart below to compare losses from any high point for XLK and FRDM.

Drawdown Indicators

	XLK	FRDM	Difference
Max Drawdown Largest peak-to-trough decline	-82.05%	-40.49%	-41.56%
Max Drawdown (1Y) Largest decline over 1 year	-15.92%	-16.87%	+0.95%
Max Drawdown (3Y) Largest decline over 3 years	-25.66%	-16.87%	-8.79%
Max Drawdown (5Y) Largest decline over 5 years	-33.56%	-29.25%	-4.31%
Max Drawdown (10Y) Largest decline over 10 years	-33.56%	—	—
Current Drawdown Current decline from peak	-11.25%	-14.99%	+3.74%
Average Drawdown Average peak-to-trough decline	-34.83%	-7.09%	-27.74%
Ulcer Index Depth and duration of drawdowns from previous peaks	5.43%	5.06%	+0.37%

Volatility

XLK vs. FRDM - Volatility Comparison

The current volatility for State Street Technology Select Sector SPDR ETF (XLK) is 9.59%, while Freedom 100 Emerging Markets ETF (FRDM) has a volatility of 12.98%. This indicates that XLK experiences smaller price fluctuations and is considered to be less risky than FRDM based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	XLK	FRDM	Difference
Volatility (1M) Calculated over the trailing 1-month period	9.59%	12.98%	-3.39%
Volatility (6M) Calculated over the trailing 6-month period	20.94%	27.60%	-6.66%
Volatility (1Y) Calculated over the trailing 1-year period	24.61%	29.70%	-5.09%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	25.57%	22.10%	+3.47%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	24.81%	23.48%	+1.33%

XLK vs. FRDM - Expense Ratio Comparison

XLK has a 0.08% expense ratio, which is lower than FRDM's 0.49% expense ratio.

Dividends

XLK vs. FRDM - Dividend Comparison

XLK's dividend yield for the trailing twelve months is around 0.45%, less than FRDM's 1.71% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
FRDM Freedom 100 Emerging Markets ETF	1.71%	2.26%	2.53%	2.66%	2.72%	2.17%	1.11%	1.07%	0.00%	0.00%	0.00%	0.00%
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 XLK and FRDM in my portfolio?

XLK and FRDM 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 FRDM?

FRDM has higher volatility (12.98%) compared to XLK (9.59%). In terms of maximum drawdown, XLK dropped -82.05% vs FRDM's -40.49%.

Which ETF is better, XLK or FRDM?

On 5-year performance, XLK leads with 19.16% vs 16.96% for FRDM. On fees, XLK is cheaper at 0.08% per year. On volatility, XLK has been the lower-risk option at 9.59%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, XLK or FRDM?

Over the 5-year period, XLK has performed better with a 19.16% return vs 16.96%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, XLK or FRDM?

XLK is cheaper with a 0.08% expense ratio, compared with 0.49% for FRDM.

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

FRDM has the higher dividend yield at 1.71%, compared with 0.45% for XLK.

What is the main difference between XLK and FRDM?

XLK is categorized as Technology Equities, while FRDM is Emerging Markets Diversified. XLK tracks S&P Technology Select Sector Daily Capped 35/20 Index, while FRDM tracks Life + Liberty Freedom 100 Emerging Markets Index. They also come from different issuers: State Street and Freedom Funds. Their fees differ too: 0.08% for XLK and 0.49% for FRDM.

Which has better risk-adjusted returns?

FRDM currently has the higher Sharpe Ratio (2.13 vs 1.45), 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.