XLK vs XLF: Head-to-Head Comparison
XLK vs XLF: Technology Select Sector SPDR Fund has an expense ratio of 0.09% while Financial Select Sector SPDR Fund charges 0.09%. XLK holds 65 securities vs XLF's 73. 5-year returns: 21.80% vs 12.80%.
Last updated: April 2026
Sector
Quick Verdict
Both ETFs score equally well for beginners (8/10). Your choice depends on your specific investment goals.
Side-by-Side Comparison
| Metric | XLK | XLF |
|---|---|---|
| Expense Ratio | 0.09% | 0.09% |
| AUM | $65.0B | $45.0B |
| Dividend Yield | 0.70% | 1.60% |
| Holdings | 65 | 73 |
| 1-Year Return | 33.20% | 28.50% |
| 5-Year Return (Ann.) | 21.80% | 12.80% |
| 10-Year Return (Ann.) | 20.20% | 11.20% |
| Beta | 1.20 | 1.08 |
| P/E Ratio | 33.2 | 17.2 |
XLK 5-year annualized return is 21.80% compared to XLF's 12.80%. Over 10 years, XLK returned 20.20% vs XLF's 11.20%.
View data table
| Period | XLK Return | XLF Return |
|---|---|---|
| YTD | 3.60% | 3.50% |
| 1 Year | 33.20% | 28.50% |
| 3 Year | 14.80% | 10.50% |
| 5 Year | 21.80% | 12.80% |
| 10 Year | 20.20% | 11.20% |
Key Differences Between XLK and XLF
XLK (Technology Select Sector SPDR Fund) is a technology sector fund managed by State Street Global Advisors. XLK provides exposure to the technology companies in the S&P 500 index, making it one of the most popular and liquid tech sector ETFs available. It is more concentrated than VGT, holding only S&P 500 tech names rather than a broader universe. Beginners should understand that XLK's lower holding count means it is more heavily weighted toward the very largest tech stocks like Apple and Microsoft.
XLF (Financial Select Sector SPDR Fund) is a financial sector fund managed by State Street Global Advisors. XLF tracks the financial sector of the S&P 500, including banks, insurance companies, asset managers, and financial services firms. The financial sector is a major pillar of the U.S. economy and tends to benefit from rising interest rates and economic growth. Beginners should know that XLF provides targeted exposure to one sector, which makes it more volatile than a diversified fund but useful for investors with specific views on the financial industry.
The most notable differences are in fees (0.09% vs 0.09%), number of holdings (65 vs 73), and 5-year returns (21.80% vs 12.80%).
XLK vs XLF multi-factor comparison: XLK has a 0.09% expense ratio, 21.80% 5-year return, 65 holdings, 1.20 beta, and 0.70% yield. XLF has 0.09% expense ratio, 12.80% 5-year return, 73 holdings, 1.08 beta, and 1.60% yield.
View data table
| Metric | XLK | XLF |
|---|---|---|
| Expense Ratio | 0.09% | 0.09% |
| 5-Year Return | 21.80% | 12.80% |
| Holdings | 65 | 73 |
| Beta | 1.20 | 1.08 |
| Dividend Yield | 0.70% | 1.60% |
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Holdings Overlap Analysis
0%
Holdings Overlap
XLK and XLF share only 0% of their top holdings. These funds are quite different, making them complementary choices if you want broader market coverage.
XLK and XLF share 0% of their top holdings (low overlap). XLK has 65 total holdings and XLF has 73.
View data table
| Metric | XLK | XLF |
|---|---|---|
| Overlap | 0% | 0% |
| Unique Holdings | 100% | 100% |
| Total Holdings | 65 | 73 |
Cost Comparison Over Time
If you invest $10,000 and hold for 20 years (assuming 8% annual returns):
XLK
Fee cost: $771
XLF
Fee cost: $771
Over 20 years, the fee difference amounts to $0 on a $10,000 investment. The cost difference is negligible — choose based on other factors.
On a $10,000 investment over 20 years at 8% return, XLK (0.09% fee) grows to $45,839 while XLF (0.09% fee) grows to $45,839. The fee difference costs $0.
View data table
| Year | XLK Value | XLF Value |
|---|---|---|
| 0 | $10,000 | $10,000 |
| 5 | $14,632 | $14,632 |
| 10 | $21,410 | $21,410 |
| 15 | $31,327 | $31,327 |
| 20 | $45,839 | $45,839 |
Which One Should a Beginner Choose?
Choose XLK if: You want active traders who need a liquid, options-friendly tech sector vehicle, investors who prefer s&p 500 quality screens applied to their tech allocation, those looking for a focused large-cap tech fund with low fees and high liquidity. It's managed by State Street Global Advisors with an expense ratio of 0.09%.
Choose XLF if: You want investors who want to overweight the financial sector in their portfolio, those who believe rising interest rates will benefit banks and financial companies, value-oriented investors attracted to the sector's lower price-to-earnings ratio. It's managed by State Street Global Advisors with an expense ratio of 0.09%.
Can You Own Both XLK and XLF?
Absolutely! With only 0% overlap, XLK and XLF complement each other well. A simple portfolio might allocate 60% to one and 40% to the other, or you could pair them with a bond ETF like BND for a complete three-fund portfolio.
Frequently Asked Questions
Should I buy XLK or XLF?▾
Both ETFs score equally well for beginners (8/10). Your choice depends on your specific investment goals. However, both are solid options. XLK is best for investors who want active traders who need a liquid, options-friendly tech sector vehicle, while XLF is better suited for investors who want to overweight the financial sector in their portfolio.
What is the difference between XLK and XLF?▾
XLK (Technology Select Sector SPDR Fund) tracks technology sector investments with 65 holdings and a 0.09% expense ratio. XLF (Financial Select Sector SPDR Fund) focuses on financial sector with 73 holdings at 0.09%. Their top holdings overlap by 0%.
Can I own both XLK and XLF?▾
Yes! With only 0% holdings overlap, XLK and XLF complement each other well. Owning both gives you broader diversification.