XLE vs XLK
State Street Energy Select Sector SPDR ETF vs State Street Technology Select Sector SPDR ETF
Quick Verdict
XLE delivered stronger 1-year returns. XLK offers more diversification with 77 holdings.
Side-by-Side Comparison
| Metric | XLE | XLK | Winner |
|---|---|---|---|
| Expense Ratio | 0.08% | 0.08% | |
| AUM | $40.0B | $124.4B | |
| Dividend Yield | 2.55% | 0.45% | |
| Holdings | 24 | 77 | |
| YTD Return | +41.33% | +27.34% | |
| 1Y Return | +51.94% | +42.34% | |
| 3Y Return (annualized) | +16.98% | +30.61% | |
| 5Y Return (annualized) | +26.28% | +19.29% | |
| Volatility (annualized) | 25.1% | 23.2% | |
| Max Drawdown | -76.7% | -82.0% | |
| Fund Family | SPDR State Street Global Advisors | SPDR State Street Global Advisors | |
| Category | Equity | Equity | |
| Inception | Dec 16, 1998 | Dec 16, 1998 |
XLE vs XLK Performance
State Street Energy Select Sector SPDR ETF (XLE) 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 XLE returned +51.94% while XLK returned +42.34%. Year to date, XLE is up 41.33% versus a gain of 27.34% for XLK.
Over three years, XLE compounded at +16.98% per year against +30.61% for XLK; over five years the annualized figures are +26.28% and +19.29% respectively. Across the full 28-year window we track, XLK has the edge at +9.37% annualized vs +7.12%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
XLE has been the more volatile fund, with annualized monthly volatility of 25.1% compared with 23.2% 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 -76.7% for XLE 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 0.33. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
XLE charges 0.08% per year while XLK charges 0.08%. On a $10,000 position that is $8 vs $8 annually. On income, XLE currently yields 2.55% against 0.45% for XLK.
Holdings Overlap
XLE and XLK share 1 holdings out of 96 unique holdings combined, representing a 0.1% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Top Shared Holdings
| Stock | Weight in XLE | Weight in XLK | Difference |
|---|---|---|---|
| NMF | 0.14% | 0.07% | 0.07% |
Frequently Asked Questions
Which is cheaper, XLE or XLK?
XLE has an expense ratio of 0.08% while XLK charges 0.08%. They cost the same. On a $10,000 investment, that is $0 per year of difference.
Which performed better, XLE or XLK?
Over the past year XLE returned +51.94% vs +42.34% for XLK, so XLE leads on 1-year performance. Over the longest common window we track (28 years), XLE annualized +7.12% vs +9.37% for XLK. Past performance does not guarantee future results.
Which is riskier, XLE or XLK?
XLE has been the more volatile fund at 25.1% annualized versus 23.2% for XLK. Worst drawdown: XLE -76.7% vs XLK -82.0%.
Should I hold both XLE and XLK?
XLE and XLK have a monthly-return correlation of 0.33, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between XLE and XLK?
XLE and XLK share 1 common holdings with a 0.1% weight overlap. Combined, they hold 96 unique securities.
Which pays a higher dividend, XLE or XLK?
XLE yields 2.55% while XLK yields 0.45%, so XLE currently pays the higher dividend yield.
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