XLK vs. IGV

Last updated Jun 23, 2026

XLK (State Street Technology Select Sector SPDR ETF) and IGV (iShares Expanded Tech-Software Sector ETF) are both Technology Equities funds - XLK tracks the S&P Technology Select Sector Daily Capped 35/20 Index while IGV tracks the S&P North American Expanded Technology Software Index. Both are passively managed. Over the past 10 years, XLK returned 26.01%/yr vs 15.70%/yr for IGV. Their correlation of 0.83 suggests significant overlap in exposure. XLK charges 0.08%/yr vs 0.39%/yr for IGV.

Performance

XLK vs. IGV - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in State Street Technology Select Sector SPDR ETF (XLK) and iShares Expanded Tech-Software Sector ETF (IGV). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, XLK achieves a 33.79% return, which is significantly higher than IGV's -17.38% return. Over the past 10 years, XLK has outperformed IGV with an annualized return of 26.01%, while IGV has yielded a comparatively lower 15.70% annualized return.

XLK

• 1D: 0.49%
• 1M: 6.65%
• YTD: 33.79%
• 6M: 32.69%
• 1Y: 60.87%
• 3Y*: 32.46%
• 5Y*: 22.53%
• 10Y*: 26.01%

IGV

• 1D: -2.00%
• 1M: -7.11%
• YTD: -17.38%
• 6M: -19.85%
• 1Y: -16.92%
• 3Y*: 9.05%
• 5Y*: 2.55%
• 10Y*: 15.70%

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

XLK vs. IGV - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
XLK State Street Technology Select Sector SPDR ETF	33.79%	24.61%	21.63%	56.02%	-27.73%	34.74%	43.62%	49.86%	-1.68%	34.26%
IGV iShares Expanded Tech-Software Sector ETF	-17.38%	5.56%	23.41%	58.56%	-35.65%	12.30%	52.86%	34.33%	12.44%	42.16%

Correlation

The correlation between XLK and IGV is 0.63, 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	0.63
Correlation (3Y) Calculated over the trailing 3-year period	0.75
Correlation (5Y) Calculated over the trailing 5-year period	0.82
Correlation (10Y) Calculated over the trailing 10-year period	0.83
Correlation (All Time) Calculated using the full available price history since Jul 13, 2001	0.83

Over the past year, the correlation between XLK and IGV has dropped to 0.63 - well below their long-term average of 0.83, suggesting their price drivers have been diverging.

XLK vs. IGV - Sectors Allocation Comparison

Sectors	XLK	IGV
Technology	99.7%	89.1%
Energy	0.2%	-
Industrials	0.1%	0.1%
Basic Materials	-	-
Communication Services	-	8.6%
Consumer Cyclical	-	0.3%
Consumer Defensive	-	-
Financial Services	-	1.9%
Healthcare	-	-
Real Estate	-	-
Utilities	-	-

Return for Risk

XLK vs. IGV — Risk / Return Rank

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

XLK

XLK Risk / Return Rank: 77
XLK Sharpe Ratio Rank: 86
XLK Sortino Ratio Rank: 75
XLK Omega Ratio Rank: 77
XLK Calmar Ratio Rank: 78
XLK Martin Ratio Rank: 69

IGV

IGV Risk / Return Rank: 4
IGV Sharpe Ratio Rank: 4
IGV Sortino Ratio Rank: 4
IGV Omega Ratio Rank: 4
IGV Calmar Ratio Rank: 5
IGV Martin Ratio Rank: 4

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. IGV - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for State Street Technology Select Sector SPDR ETF (XLK) and iShares Expanded Tech-Software Sector ETF (IGV). 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	IGV	Difference
Sharpe ratio: Return per unit of total volatility	2.65	-0.60	+3.25
Sortino ratio: Return per unit of downside risk	3.20	-0.70	+3.90
Omega ratio: Gain probability vs. loss probability	1.43	0.92	+0.52
Calmar ratio: Return relative to maximum drawdown	3.84	-0.46	+4.31
Martin ratio: Return relative to average drawdown	12.30	-0.95	+13.25

XLK vs. IGV - Sharpe Ratio Comparison

The current XLK Sharpe Ratio is 2.65, which is higher than the IGV Sharpe Ratio of -0.60. The chart below compares the historical Sharpe Ratios of XLK and IGV, 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. IGV - Drawdown Comparison

The maximum XLK drawdown since its inception was -82.05%, which is greater than IGV's maximum drawdown of -63.45%. Use the drawdown chart below to compare losses from any high point for XLK and IGV.

Drawdown Indicators

	XLK	IGV	Difference
Max Drawdown Largest peak-to-trough decline	-82.05%	-63.45%	-18.60%
Max Drawdown (1Y) Largest decline over 1 year	-15.92%	-36.61%	+20.69%
Max Drawdown (3Y) Largest decline over 3 years	-25.66%	-36.61%	+10.95%
Max Drawdown (5Y) Largest decline over 5 years	-33.56%	-45.85%	+12.29%
Max Drawdown (10Y) Largest decline over 10 years	-33.56%	-45.85%	+12.29%
Current Drawdown Current decline from peak	-2.94%	-25.86%	+22.92%
Average Drawdown Average peak-to-trough decline	-34.90%	-14.46%	-20.44%
Ulcer Index Depth and duration of drawdowns from previous peaks	4.96%	17.87%	-12.91%

Volatility

XLK vs. IGV - Volatility Comparison

The current volatility for State Street Technology Select Sector SPDR ETF (XLK) is 11.64%, while iShares Expanded Tech-Software Sector ETF (IGV) has a volatility of 12.72%. This indicates that XLK experiences smaller price fluctuations and is considered to be less risky than IGV based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	XLK	IGV	Difference
Volatility (1M) Calculated over the trailing 1-month period	11.64%	12.72%	-1.08%
Volatility (6M) Calculated over the trailing 6-month period	19.23%	24.91%	-5.68%
Volatility (1Y) Calculated over the trailing 1-year period	23.12%	28.33%	-5.21%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	25.30%	27.97%	-2.67%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	24.71%	26.42%	-1.71%

XLK vs. IGV - Expense Ratio Comparison

XLK has a 0.08% expense ratio, which is lower than IGV's 0.39% expense ratio.

Dividends

XLK vs. IGV - Dividend Comparison

XLK's dividend yield for the trailing twelve months is around 0.52%, more than IGV's 0.02% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
IGV iShares Expanded Tech-Software Sector ETF	0.02%	0.00%	0.00%	0.01%	0.01%	0.00%	0.35%	0.02%	0.16%	0.09%	0.82%	0.22%
XLK State Street Technology Select Sector SPDR ETF	0.52%	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 IGV in my portfolio?

XLK and IGV have a correlation of 0.63, 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 IGV?

IGV has higher volatility (12.72%) compared to XLK (11.64%). In terms of maximum drawdown, XLK dropped -82.05% vs IGV's -63.45%.

Which ETF is better, XLK or IGV?

On 10-year performance, XLK leads with 26.01% vs 15.70% for IGV. On fees, XLK is cheaper at 0.08% per year. On volatility, XLK has been the lower-risk option at 11.64%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, XLK or IGV?

Over the 10-year period, XLK has performed better with a 26.01% return vs 15.70%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, XLK or IGV?

XLK is cheaper with a 0.08% expense ratio, compared with 0.39% for IGV.

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

XLK has the higher dividend yield at 0.52%, compared with 0.02% for IGV.

What is the main difference between XLK and IGV?

XLK tracks S&P Technology Select Sector Daily Capped 35/20 Index, while IGV tracks S&P North American Expanded Technology Software Index. They also come from different issuers: State Street and iShares. Their fees differ too: 0.08% for XLK and 0.39% for IGV.

Which has better risk-adjusted returns?

XLK currently has the higher Sharpe Ratio (2.65 vs -0.60), 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.