IYW vs XLK
iShares US Technology ETF vs State Street Technology Select Sector SPDR ETF
Which is better, IYW or XLK?
Nearly the same fund. XLK costs less.
XLK has a lower expense ratio. IYW led over 3Y and the full window, XLK over 1Y and 5Y. The two have moved almost in lockstep, correlation 0.98. XLK is less concentrated, with 64.1% of the fund in its ten largest positions against 65.3%.
MarketXLS is not an investment adviser. This comparison is generated automatically from market data and is for information only. A Best mark means the better reading on that one measure, not a recommendation to buy.
Side-by-Side Comparison
| Metric | IYW | XLK |
|---|---|---|
| Expense Ratio | 0.37% | 0.08%Best |
| AUM | $22.2B | $109.6B |
| Dividend Yield | 0.10% | 0.47% |
| Holdings | 307 | 152 |
| YTD Return | +18.52% | +21.27%Best |
| 1Y Return | +16.53% | +19.62%Best |
| 3Y Return (annualized) | +28.32%Best | +25.85% |
| 5Y Return (annualized) | +16.38% | +16.97%Best |
| Volatility (annualized) | 24.6% | 22.8%Best |
| Max Drawdown | -81.9% | -79.8%Best |
| $10,000 over 5 years | $21,350 | $21,896Best |
| Top 10 Weight | 65.3% | 64.1%Best |
| Fund Family | iShares by BlackRock (US) | State Street Investment Management |
| Category | Equity | Equity |
| Style | Large Cap Growth | Large Cap Growth |
| Inception | May 15, 2000 | Dec 16, 1998 |
Volatility and max drawdown are measured over the window both funds cover: May 19, 2000 to Nov 11, 2026 (26.5 years).
IYW vs XLK growth
Month-end closes. Both lines start at 0% in the first month shown, so the gap between them is the difference in growth across that window. The full view covers the 26.5 years both funds cover.
IYW vs XLK Performance
iShares US Technology ETF (IYW) is an ETF from iShares by BlackRock (US) and State Street Technology Select Sector SPDR ETF (XLK) is an ETF from State Street Investment Management. Over the past year IYW returned +16.53% while XLK returned +19.62%. Year to date, IYW is up 18.52% versus a gain of 21.27% for XLK.
Over three years, IYW compounded at +28.32% per year against +25.85% for XLK; over five years the annualized figures are +16.38% and +16.97% respectively. Across the full 27-year window we track, IYW has the edge at +8.55% annualized vs +7.90%.
Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
IYW has been the more volatile fund, with annualized monthly volatility of 24.6% compared with 22.8% for XLK. Lower volatility generally means a smoother ride, though it often comes with lower long-run returns.
The deepest peak-to-trough decline in our data was -81.9% for IYW and -79.8% for XLK. Drawdown depth is what each fund did in the worst stretch of the window measured above.
The two funds' monthly returns correlate at 0.98. They move almost in lockstep, so holding both mostly duplicates the same exposure.
Fees and Cost Over Time
IYW charges 0.37% per year while XLK charges 0.08%. On a $10,000 position that is $37 vs $8 annually, a gap of $29 per year that compounds over a long holding period. On income, IYW currently yields 0.10% against 0.47% for XLK.
Holdings Overlap
85.1% of IYW's money is in holdings XLK also owns. 91.4% of XLK's money is in holdings IYW also owns.
Most of XLK is already inside IYW. Owning both mostly buys the same companies twice.
58 positions in common, counted across the 149 positions we hold weights for in IYW and 74 in XLK, against full books of 307 and 152.
What only one of them owns
Our book lists 15 positions for XLK that do not appear in our book for IYW (7.8% of the fund), and 86 for IYW that do not appear in XLK (14.5%).
Some of those will be the same company recorded under a different code in one of the two books, so the real difference in what you would own is no larger than this and may be smaller. We do not name the individual positions here for that reason.
Top Shared Holdings
| Stock | Weight in IYW | Weight in XLK | Difference |
|---|---|---|---|
| NVDANvidia Corp | 16.86% | 15.51% | 1.35% |
| AAPLApple Inc | 16.20% | 13.34% | 2.86% |
| MSFTMicrosoft Corp | 12.96% | 10.53% | 2.43% |
| AMDAdvanced Micro Devices Inc | 3.06% | 5.13% | 2.07% |
| AVGOBroadcom Inc | 3.14% | 4.63% | 1.49% |
| MUMicron Technology, Inc. | 2.65% | 4.41% | 1.76% |
| INTCIntel Corp. | 2.19% | 3.29% | 1.10% |
| PLTRPalantir Technologies Inc. | 2.18% | 2.41% | 0.23% |
| LRCXLam Research Corp | 1.75% | 2.41% | 0.66% |
| AMATApplied Material | 1.73% | 2.38% | 0.65% |
91.4% of XLK is already inside IYW.
You probably hold more than these two. Add the rest and see how much of the whole book is the same companies twice.
Free for up to 10 holdings. No account needed.
Frequently Asked Questions
Which is cheaper, IYW or XLK?
IYW has an expense ratio of 0.37% while XLK charges 0.08%. XLK is the cheaper option, by $29 a year on a $10,000 investment.
Which performed better, IYW or XLK?
Over the past year IYW returned +16.53% vs +19.62% for XLK, so XLK leads on 1-year performance. Over the longest common window we track (27 years), IYW annualized +8.55% vs +7.90% for XLK. Past performance does not guarantee future results. This is information, not a recommendation.
Which is riskier, IYW or XLK?
IYW has been the more volatile fund at 24.6% annualized versus 22.8% for XLK. Worst drawdown: IYW -81.9% vs XLK -79.8%.
Should I hold both IYW and XLK?
IYW and XLK have a monthly-return correlation of 0.98, so they move almost identically. What is left to separate them is the fee and the index each one tracks. This is information, not a recommendation.
What is the holdings overlap between IYW and XLK?
91.4% of XLK's money is in holdings IYW also owns. 91.4% of XLK's is in holdings IYW also owns. They hold 58 positions in common, counted across the 149 positions we hold weights for in IYW and 74 in XLK.
Which pays a higher dividend, IYW or XLK?
IYW yields 0.10% while XLK yields 0.47%, so XLK currently pays the higher dividend yield.
Is XLK better than IYW?
XLK has a lower expense ratio. IYW led over 3Y and the full window, XLK over 1Y and 5Y. The two have moved almost in lockstep, correlation 0.98. XLK is less concentrated, with 64.1% of the fund in its ten largest positions against 65.3%. Which one suits a particular account depends on what it is for. This is information, not a recommendation.