XLK vs. TDIV

Last updated Jun 14, 2026

XLK (State Street Technology Select Sector SPDR ETF) and TDIV (First Trust NASDAQ Technology Dividend Index Fund) are both Technology Equities funds - XLK tracks the S&P Technology Select Sector Daily Capped 35/20 Index while TDIV tracks the NASDAQ Technology Dividend Index. Both are passively managed. Over the past 10 years, XLK returned 25.19%/yr vs 18.57%/yr for TDIV. Their correlation of 0.90 suggests significant overlap in exposure. XLK charges 0.08%/yr vs 0.50%/yr for TDIV.

Performance

XLK vs. TDIV - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in State Street Technology Select Sector SPDR ETF (XLK) and First Trust NASDAQ Technology Dividend Index Fund (TDIV). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, XLK achieves a 28.52% return, which is significantly higher than TDIV's 21.17% return. Over the past 10 years, XLK has outperformed TDIV with an annualized return of 25.19%, while TDIV has yielded a comparatively lower 18.57% annualized return.

XLK

• 1D: 0.87%
• 1M: 2.95%
• YTD: 28.52%
• 6M: 28.96%
• 1Y: 55.42%
• 3Y*: 30.28%
• 5Y*: 22.02%
• 10Y*: 25.19%

TDIV

• 1D: 0.97%
• 1M: 3.59%
• YTD: 21.17%
• 6M: 20.34%
• 1Y: 37.96%
• 3Y*: 28.42%
• 5Y*: 17.37%
• 10Y*: 18.57%

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

XLK vs. TDIV - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
XLK State Street Technology Select Sector SPDR ETF	28.52%	24.61%	21.63%	56.02%	-27.73%	34.74%	43.62%	49.86%	-1.68%	34.26%
TDIV First Trust NASDAQ Technology Dividend Index Fund	21.17%	25.27%	24.43%	36.71%	-22.13%	29.49%	17.55%	33.27%	-3.18%	21.95%

Correlation

The correlation between XLK and TDIV is 0.89, 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	0.89
Correlation (3Y) Calculated over the trailing 3-year period	0.89
Correlation (5Y) Calculated over the trailing 5-year period	0.91
Correlation (10Y) Calculated over the trailing 10-year period	0.91
Correlation (All Time) Calculated using the full available price history since Aug 14, 2012	0.90

The correlation between XLK and TDIV has been stable across timeframes, ranging from 0.89 to 0.91 - a consistent structural relationship.

XLK vs. TDIV - Sectors Allocation Comparison

Sectors	XLK	TDIV
Technology	99.7%	87.1%
Energy	0.2%	-
Industrials	0.1%	1.3%
Basic Materials	-	-
Communication Services	-	11.6%
Consumer Cyclical	-	-
Consumer Defensive	-	-
Financial Services	-	-
Healthcare	-	-
Real Estate	-	-
Utilities	-	-

Return for Risk

XLK vs. TDIV — Risk / Return Rank

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

XLK

XLK Risk / Return Rank: 76
XLK Sharpe Ratio Rank: 85
XLK Sortino Ratio Rank: 76
XLK Omega Ratio Rank: 78
XLK Calmar Ratio Rank: 75
XLK Martin Ratio Rank: 68

TDIV

TDIV Risk / Return Rank: 64
TDIV Sharpe Ratio Rank: 65
TDIV Sortino Ratio Rank: 61
TDIV Omega Ratio Rank: 61
TDIV Calmar Ratio Rank: 73
TDIV Martin Ratio Rank: 62

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. TDIV - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for State Street Technology Select Sector SPDR ETF (XLK) and First Trust NASDAQ Technology Dividend Index Fund (TDIV). 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	TDIV	Difference
Sharpe ratio: Return per unit of total volatility	2.37	1.86	+0.51
Sortino ratio: Return per unit of downside risk	2.92	2.48	+0.44
Omega ratio: Gain probability vs. loss probability	1.39	1.32	+0.07
Calmar ratio: Return relative to maximum drawdown	3.36	3.23	+0.13
Martin ratio: Return relative to average drawdown	10.85	9.78	+1.07

XLK vs. TDIV - Sharpe Ratio Comparison

The current XLK Sharpe Ratio is 2.37, which is comparable to the TDIV Sharpe Ratio of 1.86. The chart below compares the historical Sharpe Ratios of XLK and TDIV, 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. TDIV - Drawdown Comparison

The maximum XLK drawdown since its inception was -82.05%, which is greater than TDIV's maximum drawdown of -31.97%. Use the drawdown chart below to compare losses from any high point for XLK and TDIV.

Drawdown Indicators

	XLK	TDIV	Difference
Max Drawdown Largest peak-to-trough decline	-82.05%	-31.97%	-50.08%
Max Drawdown (1Y) Largest decline over 1 year	-15.92%	-11.35%	-4.57%
Max Drawdown (3Y) Largest decline over 3 years	-25.66%	-23.00%	-2.66%
Max Drawdown (5Y) Largest decline over 5 years	-33.56%	-31.97%	-1.59%
Max Drawdown (10Y) Largest decline over 10 years	-33.56%	-31.97%	-1.59%
Current Drawdown Current decline from peak	-6.77%	-8.87%	+2.10%
Average Drawdown Average peak-to-trough decline	-34.93%	-4.85%	-30.08%
Ulcer Index Depth and duration of drawdowns from previous peaks	4.92%	3.74%	+1.18%

Volatility

XLK vs. TDIV - Volatility Comparison

State Street Technology Select Sector SPDR ETF (XLK) has a higher volatility of 10.86% compared to First Trust NASDAQ Technology Dividend Index Fund (TDIV) at 9.90%. This indicates that XLK's price experiences larger fluctuations and is considered to be riskier than TDIV based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	XLK	TDIV	Difference
Volatility (1M) Calculated over the trailing 1-month period	10.86%	9.90%	+0.96%
Volatility (6M) Calculated over the trailing 6-month period	18.92%	15.62%	+3.30%
Volatility (1Y) Calculated over the trailing 1-year period	22.55%	19.72%	+2.83%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	25.18%	20.90%	+4.28%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	24.64%	20.96%	+3.68%

XLK vs. TDIV - Expense Ratio Comparison

XLK has a 0.08% expense ratio, which is lower than TDIV's 0.50% expense ratio.

Dividends

XLK vs. TDIV - Dividend Comparison

XLK's dividend yield for the trailing twelve months is around 0.41%, less than TDIV's 1.20% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
TDIV First Trust NASDAQ Technology Dividend Index Fund	1.20%	1.40%	1.59%	1.74%	2.51%	1.76%	2.07%	2.27%	2.97%	2.27%	2.45%	2.52%
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

Can I hold both XLK and TDIV in my portfolio?

XLK and TDIV have a correlation of 0.89, 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 TDIV?

XLK has higher volatility (10.86%) compared to TDIV (9.90%). In terms of maximum drawdown, XLK dropped -82.05% vs TDIV's -31.97%.

Which ETF is better, XLK or TDIV?

On 10-year performance, XLK leads with 25.19% vs 18.57% for TDIV. On fees, XLK is cheaper at 0.08% per year. On volatility, TDIV has been the lower-risk option at 9.90%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, XLK or TDIV?

Over the 10-year period, XLK has performed better with a 25.19% return vs 18.57%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, XLK or TDIV?

XLK is cheaper with a 0.08% expense ratio, compared with 0.50% for TDIV.

Which ETF pays a higher dividend yield, XLK or TDIV?

TDIV has the higher dividend yield at 1.20%, compared with 0.41% for XLK.

What is the main difference between XLK and TDIV?

XLK tracks S&P Technology Select Sector Daily Capped 35/20 Index, while TDIV tracks NASDAQ Technology Dividend Index. They also come from different issuers: State Street and First Trust. Their fees differ too: 0.08% for XLK and 0.50% for TDIV.

Which has better risk-adjusted returns?

XLK currently has the higher Sharpe Ratio (2.37 vs 1.86), 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.