XSW vs. FTXL

Last updated Jun 4, 2026

XSW (SPDR S&P Software & Services ETF) and FTXL (First Trust Nasdaq Semiconductor ETF) are both exchange-traded funds - XSW is a Technology Equities fund tracking the S&P Software & Services Select Industry Index, while FTXL is a Semiconductors fund tracking the Nasdaq U.S. Smart Semiconductor Index. Both are passively managed. Over the past 5 years, XSW returned 1.69%/yr vs 34.63%/yr for FTXL. A 0.64 correlation means they provide meaningful diversification when combined. XSW charges 0.35%/yr vs 0.60%/yr for FTXL.

Performance

XSW vs. FTXL - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in SPDR S&P Software & Services ETF (XSW) and First Trust Nasdaq Semiconductor ETF (FTXL). 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 FTXL's 115.70% 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%

FTXL

• 1D: 2.21%
• 1M: 30.59%
• YTD: 115.70%
• 6M: 113.17%
• 1Y: 225.15%
• 3Y*: 61.52%
• 5Y*: 34.63%
• 10Y*: —

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

XSW vs. FTXL - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
XSW SPDR S&P Software & Services ETF	-6.38%	-0.90%	25.81%	38.60%	-34.22%	7.47%	52.41%	36.50%	7.67%	27.94%
FTXL First Trust Nasdaq Semiconductor ETF	115.70%	48.94%	7.59%	54.41%	-33.88%	36.04%	46.08%	61.77%	-14.47%	32.19%

Correlation

The correlation between XSW and FTXL is 0.30, which is low. Their price movements are largely independent, making them effective diversification partners.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	0.30
Correlation (3Y) Calculated over the trailing 3-year period	0.53
Correlation (5Y) Calculated over the trailing 5-year period	0.62
Correlation (All Time) Calculated using the full available price history since Sep 22, 2016	0.64

Over the past year, the correlation between XSW and FTXL has dropped to 0.30 - well below their long-term average of 0.64, suggesting their price drivers have been diverging.

XSW vs. FTXL - Sectors Allocation Comparison

Sectors	XSW	FTXL
Technology	86.5%	99.5%
Financial Services	8.1%	-
Communication Services	2.9%	-
Consumer Cyclical	1.0%	-
Industrials	0.8%	0.5%
Healthcare	0.7%	-
Basic Materials	-	-
Consumer Defensive	-	-
Energy	-	-
Real Estate	-	-
Utilities	-	-

Return for Risk

XSW vs. FTXL — 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

FTXL

FTXL Risk / Return Rank: 97
FTXL Sharpe Ratio Rank: 98
FTXL Sortino Ratio Rank: 96
FTXL Omega Ratio Rank: 96
FTXL Calmar Ratio Rank: 98
FTXL Martin Ratio Rank: 98

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. FTXL - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for SPDR S&P Software & Services ETF (XSW) and First Trust Nasdaq Semiconductor ETF (FTXL). 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	FTXL	Difference
Sharpe ratio: Return per unit of total volatility	-0.15	6.33	-6.47
Sortino ratio: Return per unit of downside risk	-0.01	5.74	-5.76
Omega ratio: Gain probability vs. loss probability	1.00	1.78	-0.78
Calmar ratio: Return relative to maximum drawdown	-0.13	15.62	-15.75
Martin ratio: Return relative to average drawdown	-0.27	58.28	-58.55
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. FTXL - Sharpe Ratio Comparison

The current XSW Sharpe Ratio is -0.15, which is lower than the FTXL Sharpe Ratio of 6.33. The chart below compares the historical Sharpe Ratios of XSW and FTXL, 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	FTXL	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	-0.15	6.33	-6.47
Sharpe Ratio (5Y) Calculated over the trailing 5-year period	0.06	0.97	-0.91
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	0.94	-0.31

Drawdowns

XSW vs. FTXL - Drawdown Comparison

The maximum XSW drawdown since its inception was -45.38%, roughly equal to the maximum FTXL drawdown of -43.87%. Use the drawdown chart below to compare losses from any high point for XSW and FTXL.

Drawdown Indicators

	XSW	FTXL	Difference
Max Drawdown Largest peak-to-trough decline	-45.38%	-43.87%	-1.51%
Max Drawdown (1Y) Largest decline over 1 year	-33.75%	-14.51%	-19.24%
Max Drawdown (3Y) Largest decline over 3 years	-33.75%	-41.57%	+7.82%
Max Drawdown (5Y) Largest decline over 5 years	-45.38%	-43.87%	-1.51%
Max Drawdown (10Y) Largest decline over 10 years	-45.38%	—	—
Current Drawdown Current decline from peak	-14.64%	0.00%	-14.64%
Average Drawdown Average peak-to-trough decline	-9.83%	-10.56%	+0.73%
Ulcer Index Depth and duration of drawdowns from previous peaks	15.71%	3.88%	+11.83%

Volatility

XSW vs. FTXL - Volatility Comparison

The current volatility for SPDR S&P Software & Services ETF (XSW) is 10.68%, while First Trust Nasdaq Semiconductor ETF (FTXL) has a volatility of 14.28%. This indicates that XSW experiences smaller price fluctuations and is considered to be less risky than FTXL based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	XSW	FTXL	Difference
Volatility (1M) Calculated over the trailing 1-month period	10.68%	14.28%	-3.60%
Volatility (6M) Calculated over the trailing 6-month period	23.51%	28.98%	-5.47%
Volatility (1Y) Calculated over the trailing 1-year period	28.63%	35.94%	-7.31%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	28.79%	36.02%	-7.23%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	26.25%	34.25%	-8.00%

XSW vs. FTXL - Expense Ratio Comparison

XSW has a 0.35% expense ratio, which is lower than FTXL's 0.60% expense ratio.

Dividends

XSW vs. FTXL - Dividend Comparison

XSW's dividend yield for the trailing twelve months is around 0.04%, less than FTXL's 0.12% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
FTXL First Trust Nasdaq Semiconductor ETF	0.12%	0.28%	0.54%	0.60%	0.89%	0.25%	0.48%	0.92%	0.71%	0.47%	0.12%	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 FTXL in my portfolio?

XSW and FTXL have a correlation of 0.30, 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 FTXL?

FTXL has higher volatility (14.28%) compared to XSW (10.68%). In terms of maximum drawdown, XSW dropped -45.38% vs FTXL's -43.87%.

Which ETF is better, XSW or FTXL?

On 5-year performance, FTXL leads with 34.63% 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 FTXL?

Over the 5-year period, FTXL has performed better with a 34.63% 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 FTXL?

XSW is cheaper with a 0.35% expense ratio, compared with 0.60% for FTXL.

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

FTXL has the higher dividend yield at 0.12%, compared with 0.04% for XSW.

What is the main difference between XSW and FTXL?

XSW is categorized as Technology Equities, while FTXL is Semiconductors. XSW tracks S&P Software & Services Select Industry Index, while FTXL tracks Nasdaq U.S. Smart Semiconductor Index. They also come from different issuers: State Street and First Trust. Their fees differ too: 0.35% for XSW and 0.60% for FTXL.

Which has better risk-adjusted returns?

FTXL currently has the higher Sharpe Ratio (6.33 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.