XLK vs. SWPPX

Last updated Jun 26, 2026

XLK (State Street Technology Select Sector SPDR ETF) and SWPPX (Schwab S&P 500 Index Fund) are both funds - XLK is a Technology Equities fund tracking the S&P Technology Select Sector Daily Capped 35/20 Index, while SWPPX is a Large Cap Blend Equities fund tracking the S&P 500 Index. Both are passively managed. Over the past 10 years, XLK returned 25.76%/yr vs 15.59%/yr for SWPPX. Their correlation of 0.86 suggests significant overlap in exposure. XLK charges 0.08%/yr vs 0.02%/yr for SWPPX.

Performance

XLK vs. SWPPX - Performance Comparison

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

Returns By Period

In the year-to-date period, XLK achieves a 28.51% return, which is significantly higher than SWPPX's 8.10% return. Over the past 10 years, XLK has outperformed SWPPX with an annualized return of 25.76%, while SWPPX has yielded a comparatively lower 15.59% annualized return.

XLK

• 1D: 0.83%
• 1M: -0.19%
• YTD: 28.51%
• 6M: 26.47%
• 1Y: 48.82%
• 3Y*: 31.01%
• 5Y*: 21.42%
• 10Y*: 25.76%

SWPPX

• 1D: -0.11%
• 1M: -2.02%
• YTD: 8.10%
• 6M: 6.82%
• 1Y: 22.22%
• 3Y*: 20.75%
• 5Y*: 13.03%
• 10Y*: 15.59%

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

XLK vs. SWPPX - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
XLK State Street Technology Select Sector SPDR ETF	28.51%	24.61%	21.63%	56.02%	-27.73%	34.74%	43.62%	49.86%	-1.68%	34.26%
SWPPX Schwab S&P 500 Index Fund	8.10%	17.87%	24.96%	26.26%	-18.14%	28.67%	18.38%	31.46%	-4.47%	21.81%

Correlation

The correlation between XLK and SWPPX is 0.85, 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	0.85
Correlation (3Y) Calculated over the trailing 3-year period	0.88
Correlation (5Y) Calculated over the trailing 5-year period	0.91
Correlation (10Y) Calculated over the trailing 10-year period	0.89
Correlation (All Time) Calculated using the full available price history since Dec 22, 1998	0.86

The correlation between XLK and SWPPX has been stable across timeframes, ranging from 0.85 to 0.91 - a consistent structural relationship.

XLK vs. SWPPX - Sectors Allocation Comparison

Sectors	XLK	SWPPX
Technology	99.7%	39.0%
Energy	0.2%	3.1%
Industrials	0.1%	7.8%
Basic Materials	-	1.7%
Communication Services	-	10.6%
Consumer Cyclical	-	9.9%
Consumer Defensive	-	4.5%
Financial Services	-	11.1%
Healthcare	-	8.3%
Real Estate	-	1.8%
Utilities	-	2.1%

Return for Risk

XLK vs. SWPPX — Risk / Return Rank

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

XLK

XLK Risk / Return Rank: 69
XLK Sharpe Ratio Rank: 76
XLK Sortino Ratio Rank: 66
XLK Omega Ratio Rank: 69
XLK Calmar Ratio Rank: 71
XLK Martin Ratio Rank: 62

SWPPX

SWPPX Risk / Return Rank: 55
SWPPX Sharpe Ratio Rank: 52
SWPPX Sortino Ratio Rank: 48
SWPPX Omega Ratio Rank: 50
SWPPX Calmar Ratio Rank: 56
SWPPX Martin Ratio Rank: 68

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. SWPPX - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for State Street Technology Select Sector SPDR ETF (XLK) and Schwab S&P 500 Index Fund (SWPPX). 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	SWPPX	Difference
Sharpe ratio: Return per unit of total volatility	2.09	1.78	+0.31
Sortino ratio: Return per unit of downside risk	2.62	2.43	+0.19
Omega ratio: Gain probability vs. loss probability	1.35	1.32	+0.03
Calmar ratio: Return relative to maximum drawdown	3.08	2.51	+0.57
Martin ratio: Return relative to average drawdown	9.75	11.20	-1.45

XLK vs. SWPPX - Sharpe Ratio Comparison

The current XLK Sharpe Ratio is 2.09, which is comparable to the SWPPX Sharpe Ratio of 1.78. The chart below compares the historical Sharpe Ratios of XLK and SWPPX, 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. SWPPX - Drawdown Comparison

The maximum XLK drawdown since its inception was -82.05%, which is greater than SWPPX's maximum drawdown of -55.06%. Use the drawdown chart below to compare losses from any high point for XLK and SWPPX.

Drawdown Indicators

	XLK	SWPPX	Difference
Max Drawdown Largest peak-to-trough decline	-82.05%	-55.06%	-26.99%
Max Drawdown (1Y) Largest decline over 1 year	-15.92%	-8.89%	-7.03%
Max Drawdown (3Y) Largest decline over 3 years	-25.66%	-18.74%	-6.92%
Max Drawdown (5Y) Largest decline over 5 years	-33.56%	-24.51%	-9.05%
Max Drawdown (10Y) Largest decline over 10 years	-33.56%	-33.80%	+0.24%
Current Drawdown Current decline from peak	-6.77%	-3.22%	-3.55%
Average Drawdown Average peak-to-trough decline	-34.89%	-9.93%	-24.96%
Ulcer Index Depth and duration of drawdowns from previous peaks	5.02%	1.99%	+3.03%

Volatility

XLK vs. SWPPX - Volatility Comparison

State Street Technology Select Sector SPDR ETF (XLK) has a higher volatility of 12.25% compared to Schwab S&P 500 Index Fund (SWPPX) at 4.92%. This indicates that XLK's price experiences larger fluctuations and is considered to be riskier than SWPPX based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	XLK	SWPPX	Difference
Volatility (1M) Calculated over the trailing 1-month period	12.25%	4.92%	+7.33%
Volatility (6M) Calculated over the trailing 6-month period	19.63%	9.93%	+9.70%
Volatility (1Y) Calculated over the trailing 1-year period	23.42%	12.57%	+10.85%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	25.37%	17.04%	+8.33%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	24.71%	18.24%	+6.47%

XLK vs. SWPPX - Expense Ratio Comparison

XLK has a 0.08% expense ratio, which is higher than SWPPX's 0.02% expense ratio. However, 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. SWPPX - Dividend Comparison

XLK's dividend yield for the trailing twelve months is around 0.43%, less than SWPPX's 1.03% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
SWPPX Schwab S&P 500 Index Fund	1.03%	1.11%	1.23%	1.43%	1.67%	1.27%	1.81%	1.95%	2.67%	1.79%	2.55%	3.17%
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

Can I hold both XLK and SWPPX in my portfolio?

XLK and SWPPX 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.

Which is riskier, XLK or SWPPX?

XLK has higher volatility (12.25%) compared to SWPPX (4.92%). In terms of maximum drawdown, XLK dropped -82.05% vs SWPPX's -55.06%.

Which has better risk-adjusted returns?

XLK currently has the higher Sharpe Ratio (2.09 vs 1.78), 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.