XSW vs. BUG

Last updated Jun 4, 2026

XSW (SPDR S&P Software & Services ETF) and BUG (Global X Cybersecurity ETF) are both Technology Equities funds - XSW tracks the S&P Software & Services Select Industry Index while BUG tracks the Indxx Cybersecurity Index. Both are passively managed. Over the past 5 years, XSW returned 1.69%/yr vs 6.86%/yr for BUG. Their correlation of 0.85 suggests significant overlap in exposure. XSW charges 0.35%/yr vs 0.50%/yr for BUG.

Performance

XSW vs. BUG - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in SPDR S&P Software & Services ETF (XSW) and Global X Cybersecurity ETF (BUG). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, XSW achieves a -6.38% return, which is significantly lower than BUG's 20.72% return.

XSW

• 1D: -4.18%
• 1M: 9.35%
• YTD: -6.38%
• 6M: -7.49%
• 1Y: -4.24%
• 3Y*: 11.02%
• 5Y*: 1.69%
• 10Y*: 13.33%

BUG

• 1D: -4.04%
• 1M: 33.08%
• YTD: 20.72%
• 6M: 15.17%
• 1Y: 2.89%
• 3Y*: 15.82%
• 5Y*: 6.86%
• 10Y*: —

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

XSW vs. BUG - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019
XSW SPDR S&P Software & Services ETF	-6.38%	-0.90%	25.81%	38.60%	-34.22%	7.47%	52.41%	6.19%
BUG Global X Cybersecurity ETF	20.72%	-5.04%	9.59%	41.40%	-33.63%	13.24%	70.83%	6.55%

Correlation

The correlation between XSW and BUG is 0.82, 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	0.82
Correlation (3Y) Calculated over the trailing 3-year period	0.82
Correlation (5Y) Calculated over the trailing 5-year period	0.86
Correlation (All Time) Calculated using the full available price history since Nov 1, 2019	0.85

The correlation between XSW and BUG has been stable across timeframes, ranging from 0.82 to 0.86 - a consistent structural relationship.

XSW vs. BUG - Sectors Allocation Comparison

Sectors	XSW	BUG
Technology	86.5%	99.9%
Financial Services	8.1%	-
Communication Services	2.9%	0.0%
Consumer Cyclical	1.0%	0.0%
Industrials	0.8%	-
Healthcare	0.7%	0.0%
Basic Materials	-	-
Consumer Defensive	-	0.0%
Energy	-	-
Real Estate	-	-
Utilities	-	-

Return for Risk

XSW vs. BUG — Risk / Return Rank

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

XSW

XSW Risk / Return Rank: 7
XSW Sharpe Ratio Rank: 7
XSW Sortino Ratio Rank: 7
XSW Omega Ratio Rank: 7
XSW Calmar Ratio Rank: 7
XSW Martin Ratio Rank: 7

BUG

BUG Risk / Return Rank: 10
BUG Sharpe Ratio Rank: 10
BUG Sortino Ratio Rank: 10
BUG Omega Ratio Rank: 10
BUG Calmar Ratio Rank: 9
BUG Martin Ratio Rank: 9

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.

XSW vs. BUG - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for SPDR S&P Software & Services ETF (XSW) and Global X Cybersecurity ETF (BUG). 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.

	XSW	BUG	Difference
Sharpe ratio Return per unit of total volatility	-0.15	0.09	-0.24
Sortino ratio Return per unit of downside risk	-0.01	0.34	-0.35
Omega ratio Gain probability vs. loss probability	1.00	1.04	-0.05
Calmar ratio Return relative to maximum drawdown	-0.13	0.08	-0.20
Martin ratio Return relative to average drawdown	-0.27	0.16	-0.43
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month.

XSW vs. BUG - Sharpe Ratio Comparison

The current XSW Sharpe Ratio is -0.15, which is lower than the BUG Sharpe Ratio of 0.09. The chart below compares the historical Sharpe Ratios of XSW and BUG, 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

	XSW	BUG	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	-0.15	0.09	-0.24
Sharpe Ratio (5Y) Calculated over the trailing 5-year period	0.06	0.24	-0.18
Sharpe Ratio (10Y) Calculated over the trailing 10-year period	0.51	—	—
Sharpe Ratio (All Time) Calculated using the full available price history	0.63	0.49	+0.13

Drawdowns

XSW vs. BUG - Drawdown Comparison

The maximum XSW drawdown since its inception was -45.38%, which is greater than BUG's maximum drawdown of -41.66%. Use the drawdown chart below to compare losses from any high point for XSW and BUG.

Drawdown Indicators

	XSW	BUG	Difference
Max Drawdown Largest peak-to-trough decline	-45.38%	-41.66%	-3.72%
Max Drawdown (1Y) Largest decline over 1 year	-33.75%	-37.69%	+3.94%
Max Drawdown (3Y) Largest decline over 3 years	-33.75%	-37.69%	+3.94%
Max Drawdown (5Y) Largest decline over 5 years	-45.38%	-41.66%	-3.72%
Max Drawdown (10Y) Largest decline over 10 years	-45.38%	—	—
Current Drawdown Current decline from peak	-14.64%	-4.62%	-10.02%
Average Drawdown Average peak-to-trough decline	-9.83%	-14.42%	+4.59%
Ulcer Index Depth and duration of drawdowns from previous peaks	15.71%	18.36%	-2.65%

Volatility

XSW vs. BUG - Volatility Comparison

The current volatility for SPDR S&P Software & Services ETF (XSW) is 10.68%, while Global X Cybersecurity ETF (BUG) has a volatility of 14.07%. This indicates that XSW experiences smaller price fluctuations and is considered to be less risky than BUG based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	XSW	BUG	Difference
Volatility (1M) Calculated over the trailing 1-month period	10.68%	14.07%	-3.39%
Volatility (6M) Calculated over the trailing 6-month period	23.51%	25.81%	-2.30%
Volatility (1Y) Calculated over the trailing 1-year period	28.63%	30.78%	-2.15%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	28.79%	28.47%	+0.32%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	26.25%	29.33%	-3.08%

XSW vs. BUG - Expense Ratio Comparison

XSW has a 0.35% expense ratio, which is lower than BUG's 0.50% expense ratio.

Dividends

XSW vs. BUG - Dividend Comparison

XSW's dividend yield for the trailing twelve months is around 0.04%, more than BUG's 0.03% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
BUG Global X Cybersecurity ETF	0.03%	0.04%	0.09%	0.10%	1.56%	0.66%	0.46%	0.24%	0.00%	0.00%	0.00%	0.00%
XSW SPDR S&P Software & Services ETF	0.04%	0.06%	0.07%	0.20%	0.09%	0.13%	0.26%	0.12%	0.31%	0.46%	0.87%	0.54%

Frequently Asked Questions

Can I hold both XSW and BUG in my portfolio?

XSW and BUG have a correlation of 0.82, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, XSW or BUG?

BUG has higher volatility (14.07%) compared to XSW (10.68%). In terms of maximum drawdown, XSW dropped -45.38% vs BUG's -41.66%.

Which ETF is better, XSW or BUG?

On 5-year performance, BUG leads with 6.86% vs 1.69% for XSW. On fees, XSW is cheaper at 0.35% per year. On volatility, XSW has been the lower-risk option at 10.68%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, XSW or BUG?

Over the 5-year period, BUG has performed better with a 6.86% return vs 1.69%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, XSW or BUG?

XSW is cheaper with a 0.35% expense ratio, compared with 0.50% for BUG.

Which ETF pays a higher dividend yield, XSW or BUG?

XSW has the higher dividend yield at 0.04%, compared with 0.03% for BUG.

What is the main difference between XSW and BUG?

XSW tracks S&P Software & Services Select Industry Index, while BUG tracks Indxx Cybersecurity Index. They also come from different issuers: State Street and Global X. Their fees differ too: 0.35% for XSW and 0.50% for BUG.

Which has better risk-adjusted returns?

BUG currently has the higher Sharpe Ratio (0.09 vs -0.15), 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.