XLF vs XLK Stock Comparison: AI Score, Valuation, Performance and Upside
XLF and XLK both provide concentrated, single-sector exposure through the SPDR family of sector ETFs, but XLF focuses on financial services companies sensitive to interest rates and credit cycles, while XLK focuses on technology companies sensitive to growth expectations and innovation cycles.
XLF offers exposure to financial sector dynamics including interest rate sensitivity and credit cycles, while XLK offers exposure to technology sector growth themes including artificial intelligence and cloud computing. The decision depends on your sector outlook and how you want to position a portfolio relative to prevailing macroeconomic and technology trends.
XLK holds the edge across 3 of 5 key metrics in this comparison. XLK has delivered stronger 1-year price return (+17.53% vs +11.39% for XLF).
- Want concentrated exposure to the financial services sector
- Have a view on interest rate direction and its effect on bank profitability
- Believe financial stocks are attractively positioned relative to the broader market
- Are comfortable with sector-specific volatility tied to credit cycles and regulation
- Want concentrated exposure to the technology sector
- Believe in continued growth from themes such as artificial intelligence and cloud computing
- Are comfortable with concentration in a relatively small number of mega-cap holdings
- Accept greater sensitivity to interest rate expectations affecting growth stock valuations
| Metric | XLF | XLK |
|---|---|---|
| ETF scorei | 27.2 | 29.6 |
| Latest closei | $57.19 | $176.51 |
| 1M returni | +6.92% | -11.66% |
| 3M returni | -0.84% | -5.45% |
| 6M returni | +11.64% | +6.82% |
| 1Y returni | +11.39% | +17.53% |
The ETF score weights long-term returns and risk-adjusted performance most heavily, but still rewards low expense ratios, larger fund size, and broader diversification — so it can favor low-cost, broad, mega-cap funds over smaller thematic or actively-managed funds even when the latter have delivered stronger returns.
How much would $10,000 be worth today if invested at the start of each period, with all dividends reinvested?
| Period | XLF | XLK |
|---|---|---|
| 1Y ago | $11.31K (+13.1%) started 2025-11-03 | $11.81K (+18.1%) started 2025-11-03 |
| 5Y ago | $17.03K (+70.3%) started 2021-11-04 | $22.88K (+128.8%) started 2021-11-04 |
| 10Y ago | $43.15K (+331.5%) started 2016-11-04 | $94.27K (+842.7%) started 2016-11-04 |
Hypothetical — past performance does not guarantee future results.
| Metric | XLF | XLK |
|---|---|---|
| Expense ratioi | 0.08% | 0.08% |
| Total assets (AUM)i | $50.97B | $127.3B |
| Dividend yieldi | 1.55% | 0.43% |
| Trailing P/Ei | 16.30 | 28.90 |
| Betai | 0.87 | 1.39 |
| 52-week change | 11.39% | 17.53% |
| Metric | XLF | XLK |
|---|---|---|
| 1Y returni | +11.39% | +17.53% |
| 6M returni | +11.64% | +6.82% |
| 3M returni | -0.84% | -5.45% |
| 1M returni | +6.92% | -11.66% |
| 1Y Sharpe ratio | 0.51 | 0.57 |
| Betai | 0.87 | 1.39 |
| Dividend yieldi | 1.55% | 0.43% |
| 5Y CAGR | +9.28% | +17.13% |
Over the past year, XLF and XLK have moved weakly in the same direction (correlation of 0.16), based on daily returns.
Lower drawdown and smaller single-period drops generally indicate a smoother ride, though they do not guarantee lower future risk.
| Period | Metric | XLF | XLK |
|---|---|---|---|
| 1Y | Growthi | +11.39% | +17.53% |
| CAGRi | +11.40% | +17.54% | |
| Volatilityi | 14.57% | 27.29% | |
| Sharpe ratioi | 0.51 | 0.57 | |
| Sortino ratioi | 0.72 | 0.80 | |
| Max drawdowni | 14.79% | 15.86% | |
| Current drawdowni | 1.99% | 12.62% | |
| Avg drawdowni | 4.74% | 5.31% | |
| Ulcer Indexi | 6.09% | 6.34% | |
| Max daily dropi | 3.35% | 6.66% | |
| Max wkly dropi | 4.81% | 9.99% | |
| 5Y | Growthi | +55.80% | +120.37% |
| CAGRi | +9.28% | +17.13% | |
| Volatilityi | 18.30% | 26.20% | |
| Sharpe ratioi | 0.33 | 0.57 | |
| Sortino ratioi | 0.47 | 0.81 | |
| Max drawdowni | 25.81% | 33.56% | |
| Current drawdowni | 1.99% | 12.62% | |
| Avg drawdowni | 7.90% | 8.67% | |
| Ulcer Indexi | 10.65% | 12.27% | |
| Max daily dropi | 7.32% | 6.82% | |
| Max wkly dropi | 12.19% | 13.59% | |
| 10Y | Growthi | +252.66% | +746.70% |
| CAGRi | +13.44% | +23.83% | |
| Volatilityi | 22.10% | 25.19% | |
| Sharpe ratioi | 0.48 | 0.80 | |
| Sortino ratioi | 0.68 | 1.14 | |
| Max drawdowni | 42.86% | 33.56% | |
| Current drawdowni | 1.99% | 12.62% | |
| Avg drawdowni | 7.65% | 6.05% | |
| Ulcer Indexi | 10.77% | 9.65% | |
| Max daily dropi | 13.71% | 13.81% | |
| Max wkly dropi | 22.99% | 17.04% |
| Category | XLF | XLK |
|---|---|---|
| Fund name | State Street Financial Select Sector SPDR ETF | State Street Technology Select Sector SPDR ETF |
| Type | ETF | ETF |
| Expense ratioi | 0.08% | 0.08% |
| Total assets (AUM)i | $50.97B | $127.3B |
| Dividend yieldi | 1.55% | 0.43% |
- Concentrated exposure to the financial sector allows investors to make targeted bets on banking, insurance, and financial services industry trends
- Financial sector companies often benefit from rising interest rate environments through improved net interest margins
- Diversification across multiple sub-industries within financial services, including banks, insurers, and asset managers, reduces single-company risk within the sector
- Concentrated exposure to the technology sector allows investors to make targeted bets on software, hardware, and semiconductor industry trends
- Technology sector companies have historically driven a substantial share of overall market gains during growth-led bull markets
- Exposure to secular growth themes including cloud computing, artificial intelligence, and digital transformation across the fund's holdings
- Concentrated sector exposure means performance can lag the broader market significantly during periods when financial stocks are out of favor
- Highly sensitive to interest rate changes, credit cycle conditions, and regulatory developments that can create meaningful volatility
- Bank-heavy composition exposes the fund to credit quality concerns during economic downturns or periods of financial system stress
- Concentrated sector exposure means performance can lag the broader market significantly during periods when technology stocks are out of favor
- High concentration in a relatively small number of mega-cap technology holdings means fund performance depends heavily on those largest positions
- Technology valuations are often more sensitive to interest rate expectations, which can create meaningful volatility during periods of shifting monetary policy
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