XLF vs XLK
State Street Financial Select Sector SPDR ETF vs State Street Technology Select Sector SPDR ETF
Which is better, XLF or XLK?
Large Cap Value against Large Cap Growth.
XLK led over 1Y, 3Y, 5Y and the full window. XLF is less concentrated, with 56.8% of the fund in its ten largest positions against 61.2%.
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 | XLF | XLK |
|---|---|---|
| Expense Ratio | 0.08%Tie | 0.08%Tie |
| AUM | $54.2B | $119.7B |
| Dividend Yield | 1.40% | 0.43% |
| Holdings | 80 | 77 |
| YTD Return | +4.72% | +28.02%Best |
| 1Y Return | +7.89% | +35.55%Best |
| 3Y Return (annualized) | +19.76% | +30.59%Best |
| 5Y Return (annualized) | +10.65% | +19.59%Best |
| Volatility (annualized) | 21.3%Best | 23.2% |
| Max Drawdown | -83.8% | -82.0%Best |
| $10,000 over 5 years | $16,587 | $24,461Best |
| Top 10 Weight | 56.8%Best | 61.2% |
| Fund Family | SPDR State Street Global Advisors | SPDR State Street Global Advisors |
| Category | Equity | Equity |
| Style | Large Cap Value | Large Cap Growth |
| Inception | Dec 16, 1998 | Dec 16, 1998 |
Volatility and max drawdown are measured over the window both funds cover: Dec 22, 1998 to Sep 14, 2026 (27.7 years).
XLF 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 27.7 years both funds cover.
XLF vs XLK Performance
State Street Financial Select Sector SPDR ETF (XLF) is an ETF from SPDR State Street Global Advisors and State Street Technology Select Sector SPDR ETF (XLK) is an ETF from SPDR State Street Global Advisors. Over the past year XLF returned +7.89% while XLK returned +35.55%. Year to date, XLF is up 4.72% versus a gain of 28.02% for XLK.
Over three years, XLF compounded at +19.76% per year against +30.59% for XLK; over five years the annualized figures are +10.65% and +19.59% respectively. Across the full 28-year window we track, XLK has the edge at +9.37% annualized vs +3.63%.
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 21.3% 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 what each fund did in the worst stretch of the window measured above.
The two funds' monthly returns correlate at 0.51. They move together some of the time, and apart the rest.
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 1.40% against 0.43% for XLK.
Holdings Overlap
0.3% of XLF's money is in holdings XLK also owns.
We cannot see either book well enough to say how much of this pair is duplicated.
1 positions in common, counted across the 77 positions we hold weights for in XLF and 74 in XLK, against full books of 80 and 77.
What only one of them owns
Our book lists 72 positions for XLK that do not appear in our book for XLF (99.2% of the fund), and 75 for XLF that do not appear in XLK (99.4%).
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 XLF | Weight in XLK | Difference |
|---|---|---|---|
| NMFSsi Us Gov Money Market Class | 0.25% | 0.03% | 0.22% |
You are not choosing between two funds in isolation.
Whichever of XLF and XLK you pick has to sit alongside everything else you own. Add the rest and see what the combination actually holds.
Free for up to 10 holdings. No account needed.
Frequently Asked Questions
Which is cheaper, XLF or XLK?
XLF has an expense ratio of 0.08% while XLK charges 0.08%. At the precision these are quoted to, they cost the same.
Which performed better, XLF or XLK?
Over the past year XLF returned +7.89% vs +35.55% for XLK, so XLK leads on 1-year performance. Over the longest common window we track (28 years), XLF annualized +3.63% vs +9.37% for XLK. Past performance does not guarantee future results. This is information, not a recommendation.
Which is riskier, XLF or XLK?
XLK has been the more volatile fund at 23.2% annualized versus 21.3% 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 their returns are far enough apart for the mix to behave differently from either one alone. This is information, not a recommendation.
Which pays a higher dividend, XLF or XLK?
XLF yields 1.40% while XLK yields 0.43%, so XLF currently pays the higher dividend yield.
Is XLK better than XLF?
XLK led over 1Y, 3Y, 5Y and the full window. XLF is less concentrated, with 56.8% of the fund in its ten largest positions against 61.2%. Which one suits a particular account depends on what it is for. This is information, not a recommendation.