XLK vs. SPDN
XLK (State Street Technology Select Sector SPDR ETF) and SPDN (Direxion Daily S&P 500 Bear 1x Shares) are both exchange-traded funds - XLK is a Technology Equities fund tracking the S&P Technology Select Sector Daily Capped 35/20 Index, while SPDN is a Inverse Equities fund tracking the S&P 500 Index. Both are passively managed. Over the past 10 years, XLK returned 25.04%/yr vs -12.43%/yr for SPDN. At a correlation of -0.88, they often move in opposite directions. XLK charges 0.08%/yr vs 0.50%/yr for SPDN.
Performance
XLK vs. SPDN - Performance Comparison
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Returns By Period
In the year-to-date period, XLK achieves a 28.09% return, which is significantly higher than SPDN's -5.89% return. Over the past 10 years, XLK has outperformed SPDN with an annualized return of 25.04%, while SPDN has yielded a comparatively lower -12.43% annualized return.
XLK
- 1D
- 2.15%
- 1M
- 4.93%
- YTD
- 28.09%
- 6M
- 25.10%
- 1Y
- 55.42%
- 3Y*
- 31.33%
- 5Y*
- 22.26%
- 10Y*
- 25.04%
SPDN
- 1D
- -0.11%
- 1M
- 0.11%
- YTD
- -5.89%
- 6M
- -5.63%
- 1Y
- -14.82%
- 3Y*
- -12.12%
- 5Y*
- -8.55%
- 10Y*
- -12.43%
XLK vs. SPDN - Yearly Performance Comparison
| 2026 (YTD) | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | |
|---|---|---|---|---|---|---|---|---|---|---|
XLK State Street Technology Select Sector SPDR ETF | 28.09% | 24.61% | 21.63% | 56.02% | -27.73% | 34.74% | 43.62% | 49.86% | -1.68% | 34.26% |
SPDN Direxion Daily S&P 500 Bear 1x Shares | -5.89% | -11.09% | -12.88% | -15.04% | 18.63% | -23.72% | -24.56% | -21.94% | 5.41% | -17.16% |
Correlation
The correlation between XLK and SPDN is -0.85, meaning they tend to move in opposite directions. This is especially valuable for risk management - when one declines, the other has historically tended to hold steady or rise.
| Correlation | |
|---|---|
Correlation (1Y) Calculated over the trailing 1-year period | -0.85 |
Correlation (3Y) Calculated over the trailing 3-year period | -0.88 |
Correlation (5Y) Calculated over the trailing 5-year period | -0.90 |
Correlation (10Y) Calculated over the trailing 10-year period | -0.88 |
Correlation (All Time) Calculated using the full available price history since Jun 8, 2016 | -0.88 |
The correlation between XLK and SPDN has been stable across timeframes, ranging from -0.90 to -0.85 - a consistent structural relationship.
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Return for Risk
XLK vs. SPDN — Risk / Return Rank
XLK
SPDN
XLK vs. SPDN - Risk-Adjusted Trends Comparison
This table presents a comparison of risk-adjusted performance metrics for State Street Technology Select Sector SPDR ETF (XLK) and Direxion Daily S&P 500 Bear 1x Shares (SPDN). 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.
| XLK | SPDN | Difference | |
|---|---|---|---|
| Sharpe ratioReturn per unit of total volatility | +3.74 | ||
| Sortino ratioReturn per unit of downside risk | +4.80 | ||
| Omega ratioGain probability vs. loss probability | 1.42 | 0.81 | +0.61 |
| Calmar ratioReturn relative to maximum drawdown | 3.50 | -0.84 | +4.34 |
| Martin ratioReturn relative to average drawdown | 11.58 | -1.53 | +13.11 |
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month. | |||
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Sharpe Ratios by Period
| XLK | SPDN | Difference | |
|---|---|---|---|
Sharpe Ratio (1Y)Calculated over the trailing 1-year period | 2.53 | -1.21 | +3.74 |
Sharpe Ratio (5Y)Calculated over the trailing 5-year period | 0.89 | -0.51 | +1.40 |
Sharpe Ratio (10Y)Calculated over the trailing 10-year period | 1.02 | -0.69 | +1.71 |
Sharpe Ratio (All Time)Calculated using the full available price history | 0.41 | -0.69 | +1.09 |
Drawdowns
XLK vs. SPDN - Drawdown Comparison
The maximum XLK drawdown since its inception was -82.05%, which is greater than SPDN's maximum drawdown of -75.31%. Use the drawdown chart below to compare losses from any high point for XLK and SPDN.
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Drawdown Indicators
| XLK | SPDN | Difference | |
|---|---|---|---|
Max DrawdownLargest peak-to-trough decline | -82.05% | -75.31% | -6.74% |
Max Drawdown (1Y)Largest decline over 1 year | -15.92% | -17.73% | +1.81% |
Max Drawdown (3Y)Largest decline over 3 years | -25.66% | -38.24% | +12.58% |
Max Drawdown (5Y)Largest decline over 5 years | -33.56% | -43.85% | +10.29% |
Max Drawdown (10Y)Largest decline over 10 years | -33.56% | -75.31% | +41.75% |
Current DrawdownCurrent decline from peak | -7.08% | -74.65% | +67.57% |
Average DrawdownAverage peak-to-trough decline | -34.95% | -48.57% | +13.62% |
Ulcer IndexDepth and duration of drawdowns from previous peaks | 4.80% | 9.71% | -4.91% |
Volatility
XLK vs. SPDN - Volatility Comparison
State Street Technology Select Sector SPDR ETF (XLK) has a higher volatility of 10.42% compared to Direxion Daily S&P 500 Bear 1x Shares (SPDN) at 3.55%. This indicates that XLK's price experiences larger fluctuations and is considered to be riskier than SPDN based on this measure. The chart below showcases a comparison of their rolling one-month volatility.
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Volatility by Period
| XLK | SPDN | Difference | |
|---|---|---|---|
Volatility (1M)Calculated over the trailing 1-month period | 10.42% | 3.55% | +6.87% |
Volatility (6M)Calculated over the trailing 6-month period | 18.32% | 9.44% | +8.88% |
Volatility (1Y)Calculated over the trailing 1-year period | 22.08% | 12.33% | +9.75% |
Volatility (5Y)Calculated over the trailing 5-year period, annualized | 25.10% | 16.90% | +8.20% |
Volatility (10Y)Calculated over the trailing 10-year period, annualized | 24.60% | 18.05% | +6.55% |
XLK vs. SPDN - Expense Ratio Comparison
XLK has a 0.08% expense ratio, which is lower than SPDN's 0.50% expense ratio.
Dividends
XLK vs. SPDN - Dividend Comparison
XLK's dividend yield for the trailing twelve months is around 0.41%, less than SPDN's 4.01% yield.
| Position | TTM | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
SPDN Direxion Daily S&P 500 Bear 1x Shares | 4.01% | 4.06% | 5.32% | 5.84% | 0.96% | 0.00% | 0.10% | 1.89% | 1.24% | 0.42% | 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 SPDN have a correlation of -0.85, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.
XLK has higher volatility (10.42%) compared to SPDN (3.55%). In terms of maximum drawdown, XLK dropped -82.05% vs SPDN's -75.31%.
On 10-year performance, XLK leads with 25.04% vs -12.43% for SPDN. On fees, XLK is cheaper at 0.08% per year. On volatility, SPDN has been the lower-risk option at 3.55%. The better choice depends on whether you care most about return, fees, risk, or income.
Over the 10-year period, XLK has performed better with a 25.04% return vs -12.43%. 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 0.50% for SPDN.
SPDN has the higher dividend yield at 4.01%, compared with 0.41% for XLK.
XLK is categorized as Technology Equities, while SPDN is Inverse Equities. XLK tracks S&P Technology Select Sector Daily Capped 35/20 Index, while SPDN tracks S&P 500 Index. They also come from different issuers: State Street and Direxion. Their fees differ too: 0.08% for XLK and 0.50% for SPDN.
XLK currently has the higher Sharpe Ratio (2.53 vs -1.21), 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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