SPDW vs XLK
State Street SPDR Portfolio Developed World ex-US ETF vs State Street Technology Select Sector SPDR ETF
Quick Verdict
SPDW has a lower expense ratio. XLK delivered stronger 1-year returns. SPDW offers more diversification with 2,440 holdings.
Side-by-Side Comparison
| Metric | SPDW | XLK | Winner |
|---|---|---|---|
| Expense Ratio | 0.03% | 0.08% | |
| AUM | $42.0B | $124.4B | |
| Dividend Yield | 3.02% | 0.45% | |
| Holdings | 2,440 | 77 | |
| YTD Return | +17.42% | +27.34% | |
| 1Y Return | +29.01% | +42.34% | |
| 3Y Return (annualized) | +21.31% | +30.61% | |
| 5Y Return (annualized) | +10.15% | +19.29% | |
| Volatility (annualized) | 17.6% | 23.2% | |
| Max Drawdown | -62.2% | -82.0% | |
| Fund Family | SPDR State Street Global Advisors | SPDR State Street Global Advisors | |
| Category | Equity | Equity | |
| Inception | Apr 20, 2007 | Dec 16, 1998 |
SPDW vs XLK Performance
State Street SPDR Portfolio Developed World ex-US ETF (SPDW) is a ETF from SPDR State Street Global Advisors and State Street Technology Select Sector SPDR ETF (XLK) is a ETF from SPDR State Street Global Advisors. Over the past year SPDW returned +29.01% while XLK returned +42.34%. Year to date, SPDW is up 17.42% versus a gain of 27.34% for XLK.
Over three years, SPDW compounded at +21.31% per year against +30.61% for XLK; over five years the annualized figures are +10.15% and +19.29% respectively. Across the full 19-year window we track, XLK has the edge at +9.37% annualized vs +3.20%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
XLK has been the more volatile fund, with annualized monthly volatility of 23.2% compared with 17.6% for SPDW. 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 -62.2% for SPDW and -82.0% for XLK. Drawdown depth is worth weighing if you expect to sell during market stress rather than ride it out.
The two funds' monthly returns correlate at 0.74. They usually move together, but the gap leaves some room for diversification.
Fees and Cost Over Time
SPDW charges 0.03% per year while XLK charges 0.08%. On a $10,000 position that is $3 vs $8 annually, a gap of $5 per year that compounds over a long holding period. On income, SPDW currently yields 3.02% against 0.45% for XLK.
Holdings Overlap
SPDW and XLK share 1 holdings out of 2420 unique holdings combined, representing a 0.0% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Top Shared Holdings
| Stock | Weight in SPDW | Weight in XLK | Difference |
|---|---|---|---|
| ORCL | 0.01% | 1.61% | 1.60% |
Frequently Asked Questions
Which is cheaper, SPDW or XLK?
SPDW has an expense ratio of 0.03% while XLK charges 0.08%. SPDW is the cheaper option. On a $10,000 investment, that is $5 per year of difference.
Which performed better, SPDW or XLK?
Over the past year SPDW returned +29.01% vs +42.34% for XLK, so XLK leads on 1-year performance. Over the longest common window we track (19 years), SPDW annualized +3.20% vs +9.37% for XLK. Past performance does not guarantee future results.
Which is riskier, SPDW or XLK?
XLK has been the more volatile fund at 23.2% annualized versus 17.6% for SPDW. Worst drawdown: SPDW -62.2% vs XLK -82.0%.
Should I hold both SPDW and XLK?
SPDW and XLK have a monthly-return correlation of 0.74, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between SPDW and XLK?
SPDW and XLK share 1 common holdings with a 0.0% weight overlap. Combined, they hold 2420 unique securities.
Which pays a higher dividend, SPDW or XLK?
SPDW yields 3.02% while XLK yields 0.45%, so SPDW currently pays the higher dividend yield.
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