XLK vs. IYW
XLK (State Street Technology Select Sector SPDR ETF) and IYW (iShares U.S. Technology ETF) are both Technology Equities funds - XLK tracks the S&P Technology Select Sector Daily Capped 35/20 Index while IYW tracks the Russell 1000 Technology RIC 22.5/45 Capped Index. Both are passively managed. Over the past 10 years, XLK returned 25.40%/yr vs 25.87%/yr for IYW. With a 0.96 correlation, they move nearly in lockstep. XLK charges 0.08%/yr vs 0.38%/yr for IYW.
Performance
XLK vs. IYW - Performance Comparison
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Returns By Period
In the year-to-date period, XLK achieves a 27.45% return, which is significantly higher than IYW's 21.37% return. Both investments have delivered pretty close results over the past 10 years, with XLK having a 25.40% annualized return and IYW not far ahead at 25.87%.
XLK
- 1D
- -0.62%
- 1M
- 1.60%
- YTD
- 27.45%
- 6M
- 25.42%
- 1Y
- 48.85%
- 3Y*
- 30.34%
- 5Y*
- 21.22%
- 10Y*
- 25.40%
IYW
- 1D
- -0.48%
- 1M
- 0.20%
- YTD
- 21.37%
- 6M
- 19.55%
- 1Y
- 43.82%
- 3Y*
- 31.88%
- 5Y*
- 20.23%
- 10Y*
- 25.87%
XLK vs. IYW - Yearly Performance Comparison
| 2026 (YTD) | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | |
|---|---|---|---|---|---|---|---|---|---|---|
XLK State Street Technology Select Sector SPDR ETF | 27.45% | 24.61% | 21.63% | 56.02% | -27.73% | 34.74% | 43.62% | 49.86% | -1.68% | 34.26% |
IYW iShares U.S. Technology ETF | 21.37% | 25.38% | 30.25% | 65.44% | -34.83% | 35.44% | 47.45% | 46.64% | -0.93% | 36.60% |
Correlation
The correlation between XLK and IYW is 0.98 - these two move nearly in lockstep. At this level, holding both provides almost no diversification benefit. If you already own one, adding the other does little to reduce portfolio risk.
| Correlation | |
|---|---|
Correlation (1Y) Calculated over the trailing 1-year period | 0.98 |
Correlation (3Y) Calculated over the trailing 3-year period | 0.98 |
Correlation (5Y) Calculated over the trailing 5-year period | 0.98 |
Correlation (10Y) Calculated over the trailing 10-year period | 0.98 |
Correlation (All Time) Calculated using the full available price history since May 19, 2000 | 0.96 |
The correlation between XLK and IYW has been stable across timeframes, ranging from 0.96 to 0.98 - a consistent structural relationship.
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Return for Risk
XLK vs. IYW — Risk / Return Rank
XLK
IYW
XLK vs. IYW - 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 U.S. Technology ETF (IYW). 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 | IYW | Difference | |
|---|---|---|---|
| Sharpe ratioReturn per unit of total volatility | +0.12 | ||
| Sortino ratioReturn per unit of downside risk | +0.09 | ||
| Omega ratioGain probability vs. loss probability | 1.35 | 1.34 | +0.02 |
| Calmar ratioReturn relative to maximum drawdown | 3.08 | 2.47 | +0.61 |
| Martin ratioReturn relative to average drawdown | 9.79 | 7.86 | +1.93 |
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Drawdowns
XLK vs. IYW - Drawdown Comparison
The maximum XLK drawdown since its inception was -82.05%, roughly equal to the maximum IYW drawdown of -81.90%. Use the drawdown chart below to compare losses from any high point for XLK and IYW.
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Drawdown Indicators
| XLK | IYW | Difference | |
|---|---|---|---|
Max DrawdownLargest peak-to-trough decline | -82.05% | -81.90% | -0.15% |
Max Drawdown (1Y)Largest decline over 1 year | -15.92% | -17.81% | +1.89% |
Max Drawdown (3Y)Largest decline over 3 years | -25.66% | -26.47% | +0.81% |
Max Drawdown (5Y)Largest decline over 5 years | -33.56% | -39.44% | +5.88% |
Max Drawdown (10Y)Largest decline over 10 years | -33.56% | -39.44% | +5.88% |
Current DrawdownCurrent decline from peak | -7.54% | -6.80% | -0.74% |
Average DrawdownAverage peak-to-trough decline | -34.90% | -34.59% | -0.31% |
Ulcer IndexDepth and duration of drawdowns from previous peaks | 5.00% | 5.59% | -0.59% |
Volatility
XLK vs. IYW - Volatility Comparison
State Street Technology Select Sector SPDR ETF (XLK) has a higher volatility of 12.50% compared to iShares U.S. Technology ETF (IYW) at 11.14%. This indicates that XLK's price experiences larger fluctuations and is considered to be riskier than IYW based on this measure. The chart below showcases a comparison of their rolling one-month volatility.
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Volatility by Period
| XLK | IYW | Difference | |
|---|---|---|---|
Volatility (1M)Calculated over the trailing 1-month period | 12.50% | 11.14% | +1.36% |
Volatility (6M)Calculated over the trailing 6-month period | 19.62% | 18.38% | +1.24% |
Volatility (1Y)Calculated over the trailing 1-year period | 23.47% | 22.33% | +1.14% |
Volatility (5Y)Calculated over the trailing 5-year period, annualized | 25.37% | 26.24% | -0.87% |
Volatility (10Y)Calculated over the trailing 10-year period, annualized | 24.71% | 25.25% | -0.54% |
XLK vs. IYW - Expense Ratio Comparison
XLK has a 0.08% expense ratio, which is lower than IYW's 0.38% expense ratio.
Dividends
XLK vs. IYW - Dividend Comparison
XLK's dividend yield for the trailing twelve months is around 0.43%, more than IYW's 0.11% yield.
| Position | TTM | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
IYW iShares U.S. Technology ETF | 0.11% | 0.14% | 0.21% | 0.34% | 0.50% | 0.31% | 0.56% | 0.72% | 0.92% | 0.82% | 1.14% | 1.12% |
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
With a correlation of 0.98, XLK and IYW move almost identically. Holding both adds very little diversification - you're essentially doubling your position in the same market segment. Choosing one is usually more capital-efficient.
XLK has higher volatility (12.50%) compared to IYW (11.14%). In terms of maximum drawdown, XLK dropped -82.05% vs IYW's -81.90%.
On 10-year performance, IYW leads with 25.87% vs 25.40% for XLK. On fees, XLK is cheaper at 0.08% per year. On volatility, IYW has been the lower-risk option at 11.14%. The better choice depends on whether you care most about return, fees, risk, or income.
Over the 10-year period, IYW has performed better with a 25.87% return vs 25.40%. 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 0.38% for IYW.
XLK has the higher dividend yield at 0.43%, compared with 0.11% for IYW.
XLK tracks S&P Technology Select Sector Daily Capped 35/20 Index, while IYW tracks Russell 1000 Technology RIC 22.5/45 Capped Index. They also come from different issuers: State Street and iShares. Their fees differ too: 0.08% for XLK and 0.38% for IYW.
XLK currently has the higher Sharpe Ratio (2.10 vs 1.98), 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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