XLK vs. SPY
Compare and contrast key facts about Technology Select Sector SPDR Fund (XLK) and SPDR S&P 500 ETF (SPY).
XLK and SPY are both exchange-traded funds (ETFs), meaning they are traded on stock exchanges and can be bought and sold throughout the day. XLK is a passively managed fund by State Street that tracks the performance of the Technology Select Sector Index. It was launched on Dec 16, 1998. SPY is a passively managed fund by State Street that tracks the performance of the S&P 500 Index. It was launched on Jan 22, 1993. Both XLK and SPY are passive ETFs, meaning that they are not actively managed but aim to replicate the performance of the underlying index as closely as possible.
Scroll down to visually compare performance, riskiness, drawdowns, and other indicators and decide which better suits your portfolio: XLK or SPY.
Key characteristics
| XLK | SPY | |
|---|---|---|
| YTD Return | 2.30% | 5.42% |
| 1Y Return | 32.81% | 22.36% |
| 3Y Return (Ann) | 12.39% | 7.95% |
| 5Y Return (Ann) | 21.61% | 13.32% |
| 10Y Return (Ann) | 20.07% | 12.34% |
| Sharpe Ratio | 1.82 | 1.91 |
| Daily Std Dev | 17.81% | 11.67% |
| Max Drawdown | -82.05% | -55.19% |
| Current Drawdown | -6.69% | -4.52% |
Correlation
The correlation between XLK and SPY is 0.85, which is considered to be high. That indicates a strong positive relationship between their price movements. Having highly-correlated positions in a portfolio may signal a lack of diversification, potentially leading to increased risk during market downturns.
Performance
XLK vs. SPY - Performance Comparison
In the year-to-date period, XLK achieves a 2.30% return, which is significantly lower than SPY's 5.42% return. Over the past 10 years, XLK has outperformed SPY with an annualized return of 20.07%, while SPY has yielded a comparatively lower 12.34% annualized return. The chart below displays the growth of a $10,000 investment in both assets, with all prices adjusted for splits and dividends.
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XLK vs. SPY - Expense Ratio Comparison
Risk-Adjusted Performance
XLK vs. SPY - Risk-Adjusted Performance Comparison
This table presents a comparison of risk-adjusted performance metrics for Technology Select Sector SPDR Fund (XLK) and SPDR S&P 500 ETF (SPY). 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.
Dividends
XLK vs. SPY - Dividend Comparison
XLK's dividend yield for the trailing twelve months is around 0.75%, less than SPY's 1.35% yield.
| TTM | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 | 2014 | 2013 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
XLK Technology Select Sector SPDR Fund | 0.75% | 0.76% | 1.04% | 0.65% | 0.92% | 1.16% | 1.60% | 1.37% | 1.74% | 1.79% | 1.75% | 1.70% |
SPY SPDR S&P 500 ETF | 1.35% | 1.40% | 1.65% | 1.20% | 1.52% | 1.75% | 2.04% | 1.80% | 2.03% | 2.06% | 1.87% | 1.81% |
Drawdowns
XLK vs. SPY - Drawdown Comparison
The maximum XLK drawdown since its inception was -82.05%, which is greater than SPY's maximum drawdown of -55.19%. Use the drawdown chart below to compare losses from any high point for XLK and SPY. For additional features, visit the drawdowns tool.
Volatility
XLK vs. SPY - Volatility Comparison
Technology Select Sector SPDR Fund (XLK) has a higher volatility of 4.72% compared to SPDR S&P 500 ETF (SPY) at 3.22%. This indicates that XLK's price experiences larger fluctuations and is considered to be riskier than SPY based on this measure. The chart below showcases a comparison of their rolling one-month volatility.