# XLK ETF: fees, returns, drawdowns and holdings

> What XLK holds, its 0.08% yearly fee, returns by year, its worst drop, and which Tactfolio strategies hold it. Updated daily.

State Street Technology Select Sector SPDR ETF (XLK) is an exchange-traded fund (ETF) run by SPDR (State Street). This fund owns the technology companies in the S&P 500, such as makers of computer chips, software and devices. It charges 0.08% a year. From December 1998 to October 2026 it returned about 10.3% a year, and its worst drop was −82.0%.

Written by [the Tactfolio research team](https://tactfolio.com/about/editorial-policy). Fund facts checked October 16, 2026. Prices through October 16, 2026.

## Key points

- Expense ratio: 0.08% a year (about $8 on $10,000).
- Started trading on December 16, 1998.
- Last close: $183.47 on October 16, 2026.
- Return over the last year: 29.6%.
- Worst drop since 1998: −82.0%.
- 2 Tactfolio classic strategies hold it.

## How has XLK done since 1998?

From December 1998 to October 2026, XLK returned about 10.3% a year. The S&P 500 returned about 8.7% a year over the same dates. Say you put in $10,000 at the start. It would have been worth about $154,238 at the end, with every dividend reinvested.

| Period | XLK | S&P 500 (SPY) |
| --- | --- | --- |
| 1 month | −0.1% | 1.5% |
| 3 months | 3.5% | 1.9% |
| 6 months | 21.0% | 9.3% |
| Year to date | 27.9% | 12.8% |
| 1 year | 29.6% | 16.8% |
| 3 years, per year | 30.0% | 22.0% |
| 5 years, per year | 19.6% | 12.8% |
| 10 years, per year | 24.0% | 15.4% |
| Since 1998, per year | 10.3% | 8.7% |

Periods longer than a year show the return per year (CAGR). Prices through October 16, 2026. Figures use daily closing prices adjusted for splits, with dividends reinvested. They do not include taxes or the cost of buying and selling. Past results do not tell you what will happen next.

## XLK returns by month and year

XLK rose in 199 of its 335 months (59%). Its best month was October 2002, at 24.8%. Its worst was February 2001, at −24.9%.

| Year | Jan | Feb | Mar | Apr | May | Jun | Jul | Aug | Sep | Oct | Nov | Dec | Full year |
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |
| 2026 (part) | −0.1% | −3.6% | −4.1% | 20.0% | 19.8% | −0.1% | −8.0% | 6.4% | 5.1% | −6.3% |  |  | 27.9% |
| 2025 | −0.7% | −2.3% | −8.3% | 1.7% | 10.0% | 9.8% | 3.8% | −0.1% | 7.5% | 6.7% | −4.8% | 0.8% | 24.6% |
| 2024 | 2.7% | 4.7% | 0.8% | −5.8% | 7.1% | 7.8% | −3.3% | 0.7% | 2.6% | −1.6% | 5.2% | −0.4% | 21.6% |
| 2023 | 9.3% | 0.4% | 10.9% | −0.1% | 8.9% | 6.0% | 2.6% | −1.5% | −6.5% | 0.1% | 12.9% | 4.2% | 56.0% |
| 2022 | −6.8% | −4.9% | 3.4% | −11.0% | −0.7% | −9.3% | 13.5% | −6.2% | −12.0% | 7.6% | 6.3% | −8.2% | −27.7% |
| 2021 | −0.8% | 1.4% | 1.8% | 5.2% | −0.9% | 6.9% | 3.9% | 3.6% | −5.8% | 8.2% | 4.5% | 3.3% | 34.7% |
| 2020 | 4.0% | −7.3% | −8.6% | 13.7% | 7.2% | 7.0% | 5.7% | 11.9% | −5.3% | −5.0% | 11.4% | 5.5% | 43.6% |
| 2019 | 6.9% | 6.9% | 4.8% | 6.4% | −8.7% | 8.9% | 3.5% | −1.5% | 1.6% | 3.9% | 5.4% | 4.3% | 49.9% |
| 2018 | 7.0% | −0.4% | −3.7% | 0.1% | 6.8% | −0.3% | 2.1% | 6.6% | 0.0% | −8.0% | −2.0% | −8.4% | −1.7% |
| 2017 | 3.6% | 4.5% | 2.2% | 2.0% | 4.0% | −2.8% | 4.5% | 2.9% | 0.8% | 6.5% | 1.4% | 0.5% | 34.3% |
| 2016 | −3.7% | −0.7% | 8.8% | −5.0% | 4.9% | −1.4% | 7.1% | 1.2% | 2.1% | −0.8% | 0.2% | 2.3% | 15.0% |
| 2015 | −3.5% | 8.0% | −3.4% | 2.8% | 1.9% | −4.1% | 2.9% | −5.5% | −1.4% | 10.5% | 0.7% | −2.1% | 5.5% |
| 2014 | −2.6% | 4.4% | 0.4% | 0.3% | 3.8% | 1.9% | 1.7% | 3.3% | −0.5% | 1.6% | 4.8% | −2.2% | 17.8% |
| 2013 | 1.9% | 0.8% | 2.6% | 1.8% | 2.8% | −2.9% | 3.7% | −1.0% | 2.5% | 5.0% | 3.1% | 3.5% | 26.2% |
| 2012 | 6.2% | 7.1% | 4.5% | −1.1% | −6.3% | 3.3% | 1.8% | 4.2% | 1.5% | −6.4% | 0.9% | −0.4% | 15.3% |
| 2011 | 3.2% | 2.2% | −1.6% | 2.6% | −1.1% | −2.5% | 0.4% | −5.3% | −3.1% | 10.2% | −1.5% | −0.2% | 2.6% |
| 2010 | −8.6% | 3.5% | 6.8% | 1.3% | −7.5% | −5.4% | 7.4% | −5.6% | 11.7% | 5.8% | −1.6% | 5.6% | 11.4% |
| 2009 | −4.7% | −3.8% | 11.2% | 10.4% | 2.3% | 3.6% | 8.2% | 1.6% | 4.6% | −1.3% | 5.5% | 5.8% | 51.3% |
| 2008 | −12.8% | −4.7% | 1.2% | 6.3% | 6.5% | −9.4% | −2.4% | 1.8% | −12.4% | −16.1% | −8.4% | 1.6% | −41.5% |
| 2007 | 2.0% | −2.7% | 1.0% | 4.7% | 5.0% | −0.1% | −0.2% | 1.9% | 3.8% | 5.3% | −7.5% | 2.0% | 15.5% |
| 2006 | 3.4% | 0.2% | 2.3% | −1.3% | −6.5% | −0.5% | −2.6% | 7.0% | 4.0% | 4.0% | 2.8% | −0.5% | 12.2% |
| 2005 | −5.6% | 0.1% | −1.9% | −3.5% | 6.9% | −1.3% | 5.7% | −0.9% | 0.2% | −2.3% | 6.3% | −3.1% | −0.3% |
| 2004 | 4.3% | −2.5% | −2.7% | −3.8% | 3.9% | 2.7% | −6.1% | −4.4% | 2.9% | 4.4% | 5.1% | 2.6% | 5.6% |
| 2003 | −2.4% | 0.5% | −1.5% | 9.2% | 8.6% | 0.7% | 3.1% | 4.8% | −0.9% | 7.3% | 1.4% | 3.1% | 38.7% |
| 2002 | −1.1% | −13.0% | 4.9% | −12.1% | −4.2% | −13.4% | −9.5% | −0.8% | −16.7% | 24.8% | 15.8% | −13.2% | −38.2% |
| 2001 | 19.1% | −24.9% | −11.5% | 16.2% | −4.1% | 1.9% | −6.9% | −12.2% | −16.4% | 10.9% | 14.9% | −2.2% | −23.4% |
| 2000 | −6.2% | 10.5% | 8.4% | −9.2% | −10.4% | 10.0% | −5.3% | 10.2% | −18.0% | −5.7% | −20.5% | −9.9% | −41.9% |
| 1999 | 15.9% | −9.9% | 7.4% | 0.6% | 0.3% | 9.6% | −1.2% | 3.5% | −0.4% | 3.0% | 9.8% | 15.4% | 65.1% |
| 1998 (part) |  |  |  |  |  |  |  |  |  |  |  | 1.8% | 1.8% |

Each month runs from the last close of the month before. The first month counts from the first close.

## How risky is XLK compared with the S&P 500?

Measured from October 2021 to October 2026, on the days both traded.

- **Beta 1.38.** When the S&P 500 moved 1% in a day, XLK tended to move about 1.38%.
- **Correlation 0.91.** XLK mostly moved with the S&P 500.
- **Up and down months.** In months the S&P 500 rose, XLK rose 127% as much on average. In months it fell, XLK fell 103% as much.

| Measure | XLK | S&P 500 (SPY) |
| --- | --- | --- |
| Return per year | 19.4% | 12.8% |
| Volatility | 26.0% | 17.1% |
| Worst drop | −33.6% | −24.5% |
| Sharpe ratio | 0.81 | 0.79 |
| Sortino ratio | 1.19 | 1.15 |
| Calmar ratio | 0.58 | 0.52 |

Volatility is how much the price swings in a year. The Sharpe ratio is return per unit of volatility, the Sortino ratio counts only the falls, and the Calmar ratio is the return per year over the worst drop. Higher ratios mean more return for the risk taken.

## Is XLK above its 200-day average?

XLK closed 9.7% above its 200-day average on October 16, 2026. A rule that holds XLK only above that average would hold it today.

- Its 50-day average is 13.5% above its 200-day average.
- It closed 9.2% below its highest close of the last 52 weeks.

A moving average is the average close over the last so many days. Trend rules such as [the 10-month moving average strategy](https://tactfolio.com/strategies/faber-10-month-moving-average.md) hold a fund only while it is above one. You can [build that rule for XLK](https://tactfolio.com/builder) and backtest it in a minute.

## What was XLK's worst drop?

A drawdown is how far a fund falls from its last high point. XLK's worst fall was −82.0%, from March 27, 2000 to October 9, 2002. It got back to that high on March 1, 2017. On October 16, 2026 it was 9.2% below its highest close.

| Drop | Started | Bottom | Back to the high | Fall took | Recovery took |
| --- | --- | --- | --- | --- | --- |
| −82.0% | Mar 27, 2000 | Oct 9, 2002 | Mar 1, 2017 | 2.5 years | 14.4 years |
| −33.6% | Dec 27, 2021 | Oct 12, 2022 | Jun 15, 2023 | 9 months | 8 months |
| −31.1% | Feb 19, 2020 | Mar 23, 2020 | Jun 9, 2020 | 33 days | 3 months |
| −25.7% | Feb 19, 2025 | Apr 8, 2025 | Jun 12, 2025 | 2 months | 2 months |
| −23.8% | Oct 3, 2018 | Dec 24, 2018 | Apr 3, 2019 | 3 months | 3 months |

Big drops are normal for some funds. They matter because selling during a drop locks in the loss.

## What does XLK hold?

This fund owns the technology companies in the S&P 500, such as makers of computer chips, software and devices. A few very large companies make up a big part of it. Because it holds only one sector, it is less spread out than the whole market.

It tracks the Technology Select Sector Index. It had 75 holdings as of October 15, 2026, according to SPDR (State Street).

| Fact | XLK |
| --- | --- |
| Full name | State Street Technology Select Sector SPDR ETF |
| Issuer | SPDR (State Street) |
| Expense ratio | 0.08% a year |
| Started trading | December 16, 1998 |
| Tracks | Technology Select Sector Index |
| Type | US stocks, ETF |
| Holdings | 75 holdings as of October 15, 2026 |
| Facts checked | October 16, 2026 on the [SPDR (State Street) fund page](https://www.ssga.com/us/en/intermediary/etfs/state-street-technology-select-sector-spdr-etf-xlk) |

## What is the XLK expense ratio?

XLK charges 0.08% a year. An expense ratio is the yearly fee a fund takes to run itself. On $10,000, a 0.08% fee comes to about $8 a year. Of the 162 ETFs on Tactfolio, 60% charge more.

You never get a bill for it. The fund takes the fee out of its own value a little each day.

## Which Tactfolio strategies hold XLK?

2 classic strategies hold XLK at least some of the time. Each is a set of written rules you can open, test and copy.

- [Faber sector rotation (the three strongest US sectors)](https://tactfolio.com/strategies/faber-sector-rotation.md), by Mebane Faber, 2010
- [Inflation Compass (Varadi’s growth and inflation model)](https://tactfolio.com/strategies/inflation-compass.md), by David Varadi, 2026

## How does XLK compare with similar ETFs?

Funds that can stand in for XLK:

- [FTEC](https://tactfolio.com/etf/FTEC.md): Fidelity MSCI Information Technology Index ETF, 0.084% a year
- [VGT](https://tactfolio.com/etf/VGT.md): Vanguard Information Technology ETF, 0.09% a year
- [IYW](https://tactfolio.com/etf/IYW.md): iShares U.S. Technology ETF, 0.37% a year
- [QQQM](https://tactfolio.com/etf/QQQM.md): Invesco NASDAQ 100 ETF, 0.15% a year

See [all 8 XLK alternatives](https://tactfolio.com/alternatives/XLK.md), compared on the same dates as XLK.

## Test XLK in your own rules

Tactfolio is a platform where you build rules-based investing strategies, backtest them on decades of real prices, share them, and run them automatically in your own Alpaca account. Open the [builder](https://tactfolio.com/builder), add XLK, and see how a rule such as "hold it only above its 200-day average" would have done. Strategies run on daily prices and hold US stocks and ETFs only.

## The details

Prices come from Tactfolio's stored daily prices for XLK and SPY. Each close is adjusted for splits, and dividends are reinvested on the day the fund pays them out. CAGR is the steady yearly return that turns the starting value into the ending value. Volatility is the yearly standard deviation of daily returns. Beta and correlation compare daily returns with the S&P 500 over the same dates.

Fund facts come from SPDR (State Street). We checked them on October 16, 2026. Read [what a backtest simulates](https://tactfolio.com/docs/backtests.md) and [how to read drawdown and CAGR](https://tactfolio.com/docs/concepts/reading-a-backtest.md) for more on these measures.

## Research and test it

- [Sector rotation](https://tactfolio.com/learn/sector-rotation): Sector rotation explained: the 11 GICS sectors and their ETFs, business-cycle vs momentum rotation, and a classic rule with dated backtest figures.
- [S&P 500 index](https://tactfolio.com/learn/sp500-index): The S&P 500 tracks about 500 large US companies. Learn how stocks get in, how the index is weighted, how to invest in it, and how far it has fallen before.
- [What is an ETF](https://tactfolio.com/learn/what-is-an-etf): An ETF is a fund that trades like a stock. Learn how ETFs work, what they cost, the main types, and the risks, with SEC sources.
- [ETF screener](https://tactfolio.com/screener.md): A free ETF screener for 162 US-listed funds. Filter by type, issuer and fee, sort by returns or worst drop, and compare funds side by side.
- [ETF expense ratio](https://tactfolio.com/learn/etf-expense-ratio): What an ETF expense ratio is, how the fund charges it, and how 0.03% vs 1% adds up over 10 and 30 years, with real fund examples.
- [Backtest a portfolio](https://tactfolio.com/trading-tools/backtest-portfolio): Backtest a portfolio of US stocks and ETFs. Enter tickers and shares, pick when to rebalance, and get the results with a link to share.

## Common questions

### What is the expense ratio of XLK?

XLK charges 0.08% a year, according to SPDR (State Street) as of October 16, 2026. That is about $8 a year for every $10,000 you hold.

### When did XLK start trading?

XLK started trading on December 16, 1998. It is run by SPDR (State Street).

### What does XLK track?

XLK tracks the Technology Select Sector Index. This fund owns the technology companies in the S&P 500, such as makers of computer chips, software and devices.

### How much has XLK returned per year?

From December 1998 to October 2026, XLK returned about 10.3% a year with dividends reinvested. Its worst drop was −82.0%. Past returns do not tell you what it will do next.

### Is XLK above its 200-day moving average?

On October 16, 2026, XLK closed 9.7% above its 200-day moving average. This page updates after each US market close.

### Which strategies use XLK?

2 of Tactfolio's classic strategies hold XLK, including Faber sector rotation (the three strongest US sectors), Inflation Compass (Varadi’s growth and inflation model).

## Sources

- [SPDR (State Street): State Street Technology Select Sector SPDR ETF fund page](https://www.ssga.com/us/en/intermediary/etfs/state-street-technology-select-sector-spdr-etf-xlk)

> Not financial advice. Tactfolio is a research and automation tool. It is not a broker or a financial adviser. This page is for education only. Backtests are hypothetical. They show how rules would have done on past prices, not how they will do. All investing involves risk, including losing the money you put in.