XLK vs XLE: Performance, Holdings, Fees & Risk
XLK and XLE are ETFs, but they can differ materially in exposure, yield, fees and risk. XLK is State Street Technology Select Sector SPDR ETF, while XLE is State Street Energy Select Sector SPDR ETF. XLK is broader by holdings count, with 76 positions versus 24 for XLE. XLE is more concentrated at the top, based on top-10 holdings weight. Current AlgovestIQ evidence has XLE ahead on AIQ Score, 64 versus 47.
What is the main difference between XLK and XLE?
XLK holds 76 positions to XLE's 24, and 0% of their weight is in the same securities.
| Metric | XLK | XLE |
|---|---|---|
| Fund | ||
| Expense ratio | 0.08% | 0.08% |
| Holdings | 76 | 24 |
| Top-10 concentration | 61.2% | 74% |
| Distribution yieldTrailing 12 months | 0.46% | 2.2% |
| Average volume | 8,478,659 | 30,743,261 |
| Performance | ||
| 1Y return | +27.1% | +59.6% |
| YTD return | +27.3% | +52% |
| 5Y annualized returnTotal return, distributions reinvested | +19.1% | +23% |
| Risk | ||
| Annualized volatility | 26.8% | 22.2% |
| Max drawdown (1Y) | -16.1% | -15.6% |
| Max drawdown (5Y)Total return, distributions reinvested | -33.6% | -26.1% |
| Beta | 1.78 | -0.42 |
| Sharpe ratio | 0.92 | 2.01 |
| Sortino ratio | 1.45 | 3.16 |
| AlgovestIQ | ||
| AIQ Score | 47/100 | 64/100 |
| AIQ Edge Score | 3/10 | 9/10 |
| Momentum | 26/100 | 79/100 |
| Risk Resilience | 59/100 | 39/100 |
AlgovestIQ AIQ Comparison
State Street Technology Select Sector SPDR ETF vs State Street Energy Select Sector SPDR ETF
XLE leads
XLE leads by 17 AIQ points, primarily on Momentum and Value, having only recently taken the lead back from XLK.
Fragile: 3 of 4 evidence groups support XLE, the lead recently changed hands, and its current signal state is conflicted.
State Street Technology Select Sector SPDR ETF
State Street Energy Select Sector SPDR ETF
The Algovestiq AIQ Score currently favors XLE over XLK, 64 versus 47 as of Oct 24, 2026. XLE's advantage is driven primarily by stronger momentum and value, while XLK holds the stronger risk resilience profile. XLE also shows the stronger technical structure relative to its 50-day moving average. 3 of 4 covered evidence groups favor XLE today, and the comparison is rated Fragile on stability: the lead has already changed hands inside the comparison window. XLE lead: Reversed — XLK led by 1 AIQ points 30 sessions ago; XLE now leads by 17.
Compare State Street Technology Select Sector SPDR ETF and State Street Energy Select Sector SPDR ETF across performance, expense ratio, dividend yield, drawdown, volatility and the Algovestiq AIQ Score.
XLK vs XLE: which fits what
Each row is settled by a single measure. Where the gap is too small to matter it reads Similar, and no row decides the comparison as a whole.
| If you want | XLK | XLE | Fits |
|---|---|---|---|
| Lower costExpense ratio | 0.08% | 0.08% | Similar |
| Broader diversificationNumber of holdings | 76 | 24 | XLK |
| Lower concentrationWeight of the 10 largest holdings | 61.2% | 74% | XLK |
| Higher incomeTrailing 12-month distribution yield | 0.46% | 2.2% | XLE |
| Smaller drawdownsMax drawdown, 5 years | -33.6% | -26.1% | XLE |
| Lower volatilityAnnualized volatility, 1 year | 26.8% | 22.2% | XLE |
Similar means the gap is within 0.01 percentage points of expense ratio, 25% more holdings, 3 points of top-10 weight, 0.2 points of yield, 2 points of drawdown or 1 point of volatility. Past drawdowns and volatility describe the funds’ history, not their future.
Performance over time
Total return with distributions reinvested, from daily closes for both ETFs.
Total return comparison
Growth of $10,000, distributions reinvested
Split-adjusted closes; each distribution is reinvested at the close on its ex-dividend date. Taxes and trading costs are not modeled.
Compare XLK and XLE against another ticker
Open a multi-ticker workspace without changing this focused pair page.
AIQ Factor Divergence
Where the two separate, on the four dimensions behind the AIQ Score. Bars read outward from a shared zero: further from the centre is a wider gap.
- Momentum26 vs 79XLE +53
- Value32 vs 54XLE +22
- Risk Resilience59 vs 39XLK +20
- Quality73 vs 75Even
3 of 4 evidence groups favor XLE. XLE’s edge is concentrated in momentum and value; XLK keeps a meaningful risk resilience edge.
What changed since the last close
Latest scored session 2026-10-23, compared against the prior scored session 2026-10-22.
Largest factor move: Value +1
No signal started or stopped since the prior session; its 4 active signals are unchanged.
Largest factor move: Value +1, not enough on its own to move the overall score.
New signals
- Keltner Channel Breakout — bullish, volatility, short horizon
XLE's lead narrowed by 1 AIQ point in the latest session.
Deeper signal detail for each name lives on its own signals page — XLK and XLE both carry a full feed there.
The central trade-off
XLE (State Street Energy Select Sector SPDR ETF): the stronger current systematic profile, led by momentum and value.
XLK (State Street Technology Select Sector SPDR ETF): the counter-case, on risk resilience.
Fund facts, side by side
Two funds tracking overlapping universes are separated by cost and risk far more than by holdings. Those lead here.
| Measure | XLK | XLE | Why it matters |
|---|---|---|---|
| Expense ratio | 0.08% | 0.08% | Lower is better — it compounds against you every year you hold. |
| Holdings | 76 | 24 | More holdings means broader diversification, not better returns. |
| Average volume | 8,478,659 | 30,743,261 | Liquidity — matters most if you trade size. |
| Annualized volatility | 26.8% | 22.2% | Lower is a steadier ride for the same exposure. |
| Max drawdown (1Y) | -16.1% | -15.6% | The worst peak-to-trough loss over the past year. |
| Sharpe ratio | 0.92 | 2.01 | Return per unit of risk. Higher is better. |
| Beta | 1.78 | -0.42 | Sensitivity to the broad market. Neither direction is better — it depends on the role in your portfolio. |
Where the exposure actually sits
Sector exposure for each fund, ordered by the size of the difference.
How much of the same holdings they own
XLK and XLE share 0% of their weighted exposure across 0 common holdings.
74 holdings are unique to XLK, and 22 holdings are unique to XLE. Owning both is genuinely additive — most of the capital sits in different securities.
XLE is the more concentrated of the two: its ten largest positions are 74.01% of the fund, against 61.2% for XLK (24 holdings vs 76). Concentration cuts both ways — it is what drives outperformance when the top names work, and what makes the drawdown deeper when they do not.
What XLK adds that XLE doesn’t
| Holding | XLK | XLE |
|---|---|---|
| NVDANVIDIA CORP | 14.31% | Not held |
| AAPLAPPLE INC | 12.98% | Not held |
| MSFTMICROSOFT CORP | 9.9% | Not held |
| AVGOBROADCOM INC | 4.62% | Not held |
| AMDADVANCED MICRO DEVICES | 4.23% | Not held |
| MUMICRON TECHNOLOGY INC | 4.11% | Not held |
What XLE adds that XLK doesn’t
| Holding | XLE | XLK |
|---|---|---|
| XOMEXXONMOBIL HOLDINGS CORP | 20.13% | Not held |
| CVXCHEVRON CORP | 15.18% | Not held |
| COPCONOCOPHILLIPS | 6.36% | Not held |
| MPCMARATHON PETROLEUM CORP | 5.63% | Not held |
| PSXPHILLIPS 66 | 5.52% | Not held |
| VLOVALERO ENERGY CORP | 5.38% | Not held |
Each list is a fund’s largest positions by weight that the other fund does not hold, or holds at less than half the weight.
XLK vs XLE: five-year payout growth
XLE grew its split-adjusted payout faster over 2020-2025 — 6.57% a year against XLK's 5.55%. XLE: The 2020 payout was 47.2% below 2019, so the growth rate measures a recovery from a weak starting year.
| Dividend metric | XLK | XLE |
|---|---|---|
| 5Y payout CAGR | 5.55% | 6.57% |
| 2020 annual payout | $0.599 | $1.066 |
| 2025 annual payout | $0.784 | $1.465 |
| Calendar-year declines | 1 | 2 |
| Peer rank | #89 of 138 | #79 of 138 |
Split-adjusted annual distributions, 2020–2025. Research as of Sep 19, 2026. Yield and expense ratio above are current values, not part of this window.
AIQ Agreement Matrix
3 of 4 covered evidence groups favor XLE. A wide gap backed by one group is a weaker case than a narrow gap backed by five.
| Evidence group | Favors | Reading |
|---|---|---|
| AIQ Score | XLE | 47 vs 64 |
| Fundamentals | Not covered | Not covered |
| Valuation | XLE | Value 32 vs 54 |
| Technicals | XLE | Price vs 50-day -3.4% vs 7.8%; vs 200-day 8.7% vs 19.2% |
| Risk Resilience | XLK | Risk Resilience 59 vs 39 |
| Analyst expectations | Not covered | Not covered |
✓ agrees with the overall verdict · ✕ points the other way. Groups marked “not covered” lack data on one or both of XLK and XLE and are excluded from the count.
AIQ Decision Stability
The conclusion is sensitive to small changes. Treat the lead as provisional and watch the flip conditions below.
- The AIQ gap is wide at 17 points. (supports the conclusion holding)
- The lead has already changed hands inside the comparison window. (argues the conclusion is provisional)
- The lead has swung materially session to session. (argues the conclusion is provisional)
- The leader is throwing conflicting signals. (argues the conclusion is provisional)
Stability combines the score gap, how broadly the evidence agrees, how steady the lead has been across daily snapshots, the current signal state on both names, and analyst dispersion on XLE.
How the comparison changed
120 daily snapshots · Jun 24 – Oct 23XLE lead: Reversed — XLK led by 1 AIQ points 30 sessions ago; XLE now leads by 17.
- Today
- XLE +17
- 47 vs 64
- 7 sessions ago
- XLE +15
- 49 vs 64
- 30 sessions ago
- XLK +1
- 60 vs 59
- 90 sessions ago
- XLE +7
- 58 vs 65
The lead changed hands 2 times in this window, most recently on Oct 8 when XLE moved ahead of XLK.
AIQ Signal Divergence
Only the signals that bear on the head-to-head. A conflicted name is carrying bullish and bearish rules at the same time — the technical evidence is not pointing one way.
2 bullish / 2 bearish, conflicted
Only XLK
- Keltner Channel Breakdown — bearish, volatility, short horizon
- RSI Oversold - Potential Bounce — bullish, momentum, short horizon
- MACD Bearish Crossover — bearish, momentum, short horizon
6 bullish / 1 bearish, conflicted
Only XLE
- Keltner Channel Breakout — bullish, volatility, short horizon
- RSI Overbought — bearish, momentum, short horizon
- EMA Ribbon Expansion Bullish — bullish, trend, medium horizon
- 52-Week High Proximity — bullish, risk, long horizon (0.0%)
- Uptrend Structure Active — bullish, trend, long horizon
- MACD Bullish Crossover — bullish, momentum, short horizon
Both carry 1 more signal that do not separate them: Golden Cross Active.
XLE leads the comparison while carrying a conflicted signal state, which is one reason the stability rating is not higher.
Price vs model alignment
Whether the latest session's price move confirms what the model did over the same session, or contradicts it.
Price and the AIQ Score both moved up over the latest session (price +0.49%, AIQ +1 points).
Neither the price nor the AIQ Score moved enough in the latest session to confirm or contradict the other (price +2.6%, AIQ 0 points).
What would flip this result
A state, not a forecast. These are the specific, observable changes that would reverse the verdict — not a price prediction.
- 1XLK closes the Momentum gap — currently 53 points behind, the largest single contributor to XLE's edge.
- 2XLK's Keltner Channel Breakdown resolves — a bearish volatility rule currently active against it.
- 3XLE's conflicting signal state resolves bearish — it currently carries 6 bullish and 1 bearish rules at once.
- 4A regime shift changes factor weighting — Quality and Value carry the heaviest weights in the composite, so a rotation toward either would move the result most.
The full evidence
Every number behind the verdict. The leader is called above each group so you are not left to solve it from the table.
Performance
XLE leads 6 of 6 windows| Metric | XLK | XLE |
|---|---|---|
| 1 week (5 sessions) | -0.1% | 1.6% |
| 1 month (20 sessions) | -6.6% | 11.8% |
| 3 months (63 sessions) | 5.1% | 18.8% |
| 6 months (126 sessions) | 14.4% | 21.9% |
| Year to date | 27.3% | 52% |
| 1 year (252 sessions) | 27.1% | 59.6% |
Technicals
XLE has the stronger structure| Metric | XLK | XLE |
|---|---|---|
| RSI (14) | 24.9 | 76.3 |
| ADX (14) | 26.4 | 20.1 |
| Price vs 50-day | -3.4% | 7.8% |
| Price vs 200-day | 8.7% | 19.2% |
| Volatility (1M, annualized) | 23.3% | 20.4% |
Risk
XLK is the more resilient| Metric | XLK | XLE |
|---|---|---|
| Beta | 1.78 | -0.42 |
| Sharpe ratio | 0.92 | 2.01 |
| Sortino ratio | 1.45 | 3.16 |
| Max drawdown | -16.1% | -15.6% |
| Current drawdown | -9.3% | 0% |
| Annualized volatility | 26.8% | 22.2% |
| Value at risk (95%) | -2.6% | -2% |
Straight answers
Short answers to the questions fund investors ask about this pair, from the figures above.
What is the difference between XLK and XLE?
XLK holds 76 positions to XLE's 24, and 0% of their weight is in the same securities.
How much do XLK and XLE overlap?
XLK and XLE share 0% of their weighted exposure across 0 common holdings. 74 holdings are unique to XLK, and 22 holdings are unique to XLE. Owning both is genuinely additive — most of the capital sits in different securities.
Which ETF is more diversified, XLK or XLE?
XLK holds more positions: 76 versus 24 for XLE.
Which has the lower expense ratio?
Neither: both charge 0.08% a year.
Which ETF has the higher distribution yield?
XLE, with a trailing 12-month distribution yield of 2.2% against 0.46% for XLK.
Which ETF has been more volatile?
XLK has been more volatile over the past year, at 26.8% annualized against 22.2% for XLE.
Which ETF has had the smaller drawdown?
XLE fell less from peak to trough over the past five years: -26.1% against -33.6% for XLK.
Compare XLK and XLE with others
Continue your research
This page answers which of the two. These answer the questions on either side of it.
How this comparison is scored
The Algovestiq AIQ Score composites four factors — Quality, Value, Momentum and Risk, each carrying a fixed weight. Sentiment is reported separately as SentimentPulse and is not folded into the composite. Scores refresh every trading day, and this page regenerates from the latest snapshot rather than being written once.
The verdict names a leader, states how broadly six independent evidence groups agree, and rates how durable that conclusion is given the score gap, its recent trajectory and the current signal state on both names.
How to use side-by-side comparison →This comparison is informational and educational, not investment advice. AIQ scores update daily; re-check after earnings, guidance or macro data that materially changes either name’s factor profile.