XLK vs. SPY

Last updated Apr 11, 2026

XLK (State Street Technology Select Sector SPDR ETF) and SPY (State Street SPDR S&P 500 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 SPY is a S&P 500 fund tracking the S&P 500 Index. Both are passively managed. Over the past 10 years, XLK returned 21.85%/yr vs 14.53%/yr for SPY. Their correlation of 0.86 suggests significant overlap in exposure. XLK charges 0.08%/yr vs 0.09%/yr for SPY.

Performance

XLK vs. SPY - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in State Street Technology Select Sector SPDR ETF (XLK) and State Street SPDR S&P 500 ETF (SPY). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, XLK achieves a -0.81% return, which is significantly lower than SPY's -0.09% return. Over the past 10 years, XLK has outperformed SPY with an annualized return of 21.85%, while SPY has yielded a comparatively lower 14.53% annualized return.

XLK

• 1D: 0.39%
• 1M: 1.69%
• YTD: -0.81%
• 6M: 2.74%
• 1Y: 47.59%
• 3Y*: 25.42%
• 5Y*: 15.89%
• 10Y*: 21.85%

SPY

• 1D: -0.07%
• 1M: 0.74%
• YTD: -0.09%
• 6M: 4.64%
• 1Y: 31.01%
• 3Y*: 19.89%
• 5Y*: 12.07%
• 10Y*: 14.53%

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

XLK vs. SPY - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
XLK State Street Technology Select Sector SPDR ETF	-0.81%	24.61%	21.63%	56.02%	-27.73%	34.74%	43.62%	49.86%	-1.68%	34.26%
SPY State Street SPDR S&P 500 ETF	-0.09%	17.72%	24.89%	26.18%	-18.18%	28.73%	18.33%	31.22%	-4.57%	21.71%

Correlation

The correlation between XLK and SPY is 0.87, indicating a strong positive relationship between their price movements. Combining them offers limited diversification — they tend to fall together during downturns.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	0.87
Correlation (3Y) Calculated over the trailing 3-year period	0.89
Correlation (5Y) Calculated over the trailing 5-year period	0.91
Correlation (All Time) Calculated using the full available price history since Dec 23, 1998	0.86

The correlation between XLK and SPY has been stable across timeframes, ranging from 0.86 to 0.91 — a consistent structural relationship.

Return for Risk

XLK vs. SPY — Risk / Return Rank

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

XLK

XLK Risk / Return Rank: 57
XLK Sharpe Ratio Rank: 63
XLK Sortino Ratio Rank: 55
XLK Omega Ratio Rank: 55
XLK Calmar Ratio Rank: 59
XLK Martin Ratio Rank: 54

SPY

SPY Risk / Return Rank: 70
SPY Sharpe Ratio Rank: 66
SPY Sortino Ratio Rank: 65
SPY Omega Ratio Rank: 66
SPY Calmar Ratio Rank: 71
SPY Martin Ratio Rank: 80

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. SPY - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for State Street Technology Select Sector SPDR ETF (XLK) and State Street 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.

	XLK	SPY	Difference
Sharpe ratio Return per unit of total volatility	2.28	2.35	-0.07
Sortino ratio Return per unit of downside risk	2.93	3.26	-0.33
Omega ratio Gain probability vs. loss probability	1.39	1.44	-0.05
Calmar ratio Return relative to maximum drawdown	3.74	4.32	-0.58
Martin ratio Return relative to average drawdown	12.39	18.78	-6.39
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month.

XLK vs. SPY - Sharpe Ratio Comparison

The current XLK Sharpe Ratio is 2.28, which is comparable to the SPY Sharpe Ratio of 2.35. The chart below compares the historical Sharpe Ratios of XLK and SPY, calculated using daily returns over the previous 12 months. A higher Sharpe Ratio indicates better risk-adjusted performance relative to the risk-free rate.

Sharpe Ratios by Period

	XLK	SPY	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	2.28	2.35	-0.07
Sharpe Ratio (5Y) Calculated over the trailing 5-year period	0.65	0.71	-0.06
Sharpe Ratio (10Y) Calculated over the trailing 10-year period	0.90	0.81	+0.09
Sharpe Ratio (All Time) Calculated using the full available price history	0.37	0.57	-0.20

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.

Drawdown Indicators

	XLK	SPY	Difference
Max Drawdown Largest peak-to-trough decline	-82.05%	-55.19%	-26.86%
Max Drawdown (1Y) Largest decline over 1 year	-15.92%	-8.88%	-7.04%
Max Drawdown (5Y) Largest decline over 5 years	-33.56%	-24.50%	-9.06%
Max Drawdown (10Y) Largest decline over 10 years	-33.56%	-33.72%	+0.16%
Current Drawdown Current decline from peak	-5.95%	-2.04%	-3.91%
Average Drawdown Average peak-to-trough decline	-35.14%	-9.09%	-26.05%
Ulcer Index Depth and duration of drawdowns from previous peaks	4.81%	2.05%	+2.76%

Volatility

XLK vs. SPY - Volatility Comparison

State Street Technology Select Sector SPDR ETF (XLK) has a higher volatility of 8.13% compared to State Street SPDR S&P 500 ETF (SPY) at 5.74%. 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.

Volatility by Period

	XLK	SPY	Difference
Volatility (1M) Calculated over the trailing 1-month period	8.13%	5.74%	+2.39%
Volatility (6M) Calculated over the trailing 6-month period	16.64%	9.82%	+6.82%
Volatility (1Y) Calculated over the trailing 1-year period	21.59%	14.06%	+7.53%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	24.72%	17.08%	+7.64%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	24.34%	17.93%	+6.41%

XLK vs. SPY - Expense Ratio Comparison

XLK has a 0.08% expense ratio, which is lower than SPY's 0.09% expense ratio. Despite the difference, both funds are considered low-cost compared to the broader market, where average expense ratios usually range from 0.3% to 0.9%.

Dividends

XLK vs. SPY - Dividend Comparison

XLK's dividend yield for the trailing twelve months is around 0.54%, less than SPY's 1.09% yield.

	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
XLK State Street Technology Select Sector SPDR ETF	0.54%	0.54%	0.66%	0.76%	1.04%	0.65%	0.92%	1.16%	1.60%	1.37%	1.74%	1.79%
SPY State Street SPDR S&P 500 ETF	1.09%	1.07%	1.21%	1.40%	1.65%	1.20%	1.52%	1.75%	2.04%	1.80%	2.03%	2.06%