XLF vs XLK
State Street Financial Select Sector SPDR ETF vs State Street Technology Select Sector SPDR ETF
Quick Verdict
XLK delivered stronger 1-year returns. XLF offers more diversification with 80 holdings.
Side-by-Side Comparison
| Metric | XLF | XLK | Winner |
|---|---|---|---|
| Expense Ratio | 0.08% | 0.08% | |
| AUM | $58.6B | $124.4B | |
| Dividend Yield | 1.42% | 0.45% | |
| Holdings | 80 | 77 | |
| YTD Return | +5.55% | +27.34% | |
| 1Y Return | +10.76% | +42.34% | |
| 3Y Return (annualized) | +21.50% | +30.61% | |
| 5Y Return (annualized) | +10.54% | +19.29% | |
| Volatility (annualized) | 21.4% | 23.2% | |
| Max Drawdown | -83.8% | -82.0% | |
| Fund Family | SPDR State Street Global Advisors | SPDR State Street Global Advisors | |
| Category | Equity | Equity | |
| Inception | Dec 16, 1998 | Dec 16, 1998 |
XLF vs XLK Performance
State Street Financial Select Sector SPDR ETF (XLF) 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 XLF returned +10.76% while XLK returned +42.34%. Year to date, XLF is up 5.55% versus a gain of 27.34% for XLK.
Over three years, XLF compounded at +21.50% per year against +30.61% for XLK; over five years the annualized figures are +10.54% and +19.29% respectively. Across the full 28-year window we track, XLK has the edge at +9.37% annualized vs +3.67%. 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 21.4% for XLF. 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 -83.8% for XLF 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 0.51. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
XLF charges 0.08% per year while XLK charges 0.08%. On a $10,000 position that is $8 vs $8 annually. On income, XLF currently yields 1.42% against 0.45% for XLK.
Holdings Overlap
XLF and XLK share 1 holdings out of 151 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 XLF | Weight in XLK | Difference |
|---|---|---|---|
| NMF | 0.10% | 0.07% | 0.03% |
Frequently Asked Questions
Which is cheaper, XLF or XLK?
XLF 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, XLF or XLK?
Over the past year XLF returned +10.76% vs +42.34% for XLK, so XLK leads on 1-year performance. Over the longest common window we track (28 years), XLF annualized +3.67% vs +9.37% for XLK. Past performance does not guarantee future results.
Which is riskier, XLF or XLK?
XLK has been the more volatile fund at 23.2% annualized versus 21.4% for XLF. Worst drawdown: XLF -83.8% vs XLK -82.0%.
Should I hold both XLF and XLK?
XLF and XLK have a monthly-return correlation of 0.51, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between XLF and XLK?
XLF and XLK share 1 common holdings with a 0.1% weight overlap. Combined, they hold 151 unique securities.
Which pays a higher dividend, XLF or XLK?
XLF yields 1.42% while XLK yields 0.45%, so XLF currently pays the higher dividend yield.
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