XLK vs. ZSP.TO

Last updated Jun 13, 2026

XLK (State Street Technology Select Sector SPDR ETF) and ZSP.TO (BMO S&P 500 Index 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 ZSP.TO is a S&P 500 fund tracking the S&P 500 Index. Both are passively managed. Over the past 10 years, XLK returned 25.19%/yr vs 15.12%/yr for ZSP.TO. A 0.65 correlation means they provide meaningful diversification when combined. XLK charges 0.08%/yr vs 0.09%/yr for ZSP.TO.

Performance

XLK vs. ZSP.TO - Performance Comparison

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

Different Trading Currencies

XLK is traded in USD, while ZSP.TO is traded in CAD. To make them comparable, the ZSP.TO values have been converted to USD using the latest available exchange rates.

Returns By Period

In the year-to-date period, XLK achieves a 28.52% return, which is significantly higher than ZSP.TO's 8.69% return. Over the past 10 years, XLK has outperformed ZSP.TO with an annualized return of 25.19%, while ZSP.TO has yielded a comparatively lower 15.12% annualized return.

XLK

• 1D: 0.87%
• 1M: 4.50%
• YTD: 28.52%
• 6M: 28.96%
• 1Y: 53.24%
• 3Y*: 30.28%
• 5Y*: 22.02%
• 10Y*: 25.19%

ZSP.TO

• 1D: 0.45%
• 1M: -0.16%
• YTD: 8.69%
• 6M: 9.38%
• 1Y: 24.69%
• 3Y*: 20.80%
• 5Y*: 12.99%
• 10Y*: 15.12%

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

XLK vs. ZSP.TO - 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%
ZSP.TO BMO S&P 500 Index ETF	8.69%	17.73%	24.53%	26.31%	-17.88%	27.60%	18.42%	30.05%	-4.73%	21.85%

Correlation

The correlation between XLK and ZSP.TO is 0.67, which is moderate. They share some common price drivers but move independently often enough to provide real diversification benefit when combined.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	0.67
Correlation (3Y) Calculated over the trailing 3-year period	0.72
Correlation (5Y) Calculated over the trailing 5-year period	0.74
Correlation (10Y) Calculated over the trailing 10-year period	0.68
Correlation (All Time) Calculated using the full available price history since Nov 26, 2012	0.65

The correlation between XLK and ZSP.TO has been stable across timeframes, ranging from 0.65 to 0.74 - a consistent structural relationship.

XLK vs. ZSP.TO - Sectors Allocation Comparison

Sectors	XLK	ZSP.TO
Technology	99.7%	36.2%
Energy	0.2%	3.5%
Industrials	0.1%	8.2%
Basic Materials	-	1.8%
Communication Services	-	10.9%
Consumer Cyclical	-	10.1%
Consumer Defensive	-	4.8%
Financial Services	-	11.9%
Healthcare	-	8.4%
Real Estate	-	1.9%
Utilities	-	2.3%

Return for Risk

XLK vs. ZSP.TO — 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

ZSP.TO

ZSP.TO Risk / Return Rank: 79
ZSP.TO Sharpe Ratio Rank: 84
ZSP.TO Sortino Ratio Rank: 81
ZSP.TO Omega Ratio Rank: 83
ZSP.TO Calmar Ratio Rank: 73
ZSP.TO Martin Ratio Rank: 74

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. ZSP.TO - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for State Street Technology Select Sector SPDR ETF (XLK) and BMO S&P 500 Index ETF (ZSP.TO). 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	ZSP.TO	Difference
Sharpe ratio: Return per unit of total volatility	2.37	1.92	+0.45
Sortino ratio: Return per unit of downside risk	2.92	2.61	+0.31
Omega ratio: Gain probability vs. loss probability	1.39	1.35	+0.04
Calmar ratio: Return relative to maximum drawdown	3.36	2.72	+0.64
Martin ratio: Return relative to average drawdown	10.85	11.64	-0.79

XLK vs. ZSP.TO - Sharpe Ratio Comparison

The current XLK Sharpe Ratio is 2.37, which is comparable to the ZSP.TO Sharpe Ratio of 1.92. The chart below compares the historical Sharpe Ratios of XLK and ZSP.TO, 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. ZSP.TO - Drawdown Comparison

The maximum XLK drawdown since its inception was -82.05%, which is greater than ZSP.TO's maximum drawdown of -33.11%. Use the drawdown chart below to compare losses from any high point for XLK and ZSP.TO.

Drawdown Indicators

	XLK	ZSP.TO	Difference
Max Drawdown Largest peak-to-trough decline	-82.05%	-33.11%	-48.94%
Max Drawdown (1Y) Largest decline over 1 year	-15.92%	-9.11%	-6.81%
Max Drawdown (3Y) Largest decline over 3 years	-25.66%	-18.80%	-6.86%
Max Drawdown (5Y) Largest decline over 5 years	-33.56%	-24.35%	-9.21%
Max Drawdown (10Y) Largest decline over 10 years	-33.56%	-33.11%	-0.45%
Current Drawdown Current decline from peak	-6.77%	-2.52%	-4.25%
Average Drawdown Average peak-to-trough decline	-34.93%	-3.85%	-31.08%
Ulcer Index Depth and duration of drawdowns from previous peaks	4.92%	2.13%	+2.79%

Volatility

XLK vs. ZSP.TO - Volatility Comparison

State Street Technology Select Sector SPDR ETF (XLK) has a higher volatility of 10.86% compared to BMO S&P 500 Index ETF (ZSP.TO) at 4.55%. This indicates that XLK's price experiences larger fluctuations and is considered to be riskier than ZSP.TO based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	XLK	ZSP.TO	Difference
Volatility (1M) Calculated over the trailing 1-month period	10.86%	4.55%	+6.31%
Volatility (6M) Calculated over the trailing 6-month period	18.92%	9.83%	+9.09%
Volatility (1Y) Calculated over the trailing 1-year period	22.55%	12.90%	+9.65%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	25.18%	16.16%	+9.02%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	24.64%	17.54%	+7.10%

XLK vs. ZSP.TO - Expense Ratio Comparison

XLK has a 0.08% expense ratio, which is lower than ZSP.TO'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. ZSP.TO - Dividend Comparison

XLK's dividend yield for the trailing twelve months is around 0.41%, less than ZSP.TO's 0.76% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
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%
ZSP.TO BMO S&P 500 Index ETF	0.76%	0.82%	0.94%	1.33%	1.44%	1.15%	1.45%	1.48%	1.68%	1.68%	2.23%	1.60%

Frequently Asked Questions

Can I hold both XLK and ZSP.TO in my portfolio?

XLK and ZSP.TO have a correlation of 0.67, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which ETF is better, XLK or ZSP.TO?

On fees, XLK is cheaper at 0.08% per year. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF is cheaper, XLK or ZSP.TO?

XLK is cheaper with a 0.08% expense ratio, compared with 0.09% for ZSP.TO.

What is the main difference between XLK and ZSP.TO?

XLK is categorized as Technology Equities, while ZSP.TO is S&P 500. XLK tracks S&P Technology Select Sector Daily Capped 35/20 Index, while ZSP.TO tracks S&P 500 Index. They also come from different issuers: State Street and BMO. Their fees differ too: 0.08% for XLK and 0.09% for ZSP.TO.