ETF Comparison

IYW vs XLK: Which Is the Better Pick in 2026?

A head-to-head comparison of iShares U.S. Technology ETF and State Street Technology Select Sector SPDR ETF covering yield, cost, risk, and income potential.

Data updated September 4, 2026

Best for

IYWInvestors who want broad equity exposure.
XLKInvestors who want broad equity exposure.

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Visual comparison

Key metrics

Projected income on $10K

Projections assume the current yield and share price remain constant. Actual results will vary.

Total returns

IYW has lagged XLK over the trailing twelve months, posting a 39.49% total return against 44.07%. The picture flips over 10 years, though — IYW has compounded at 24.71% a year, ahead of XLK at 24.23%. Figures are total returns: price change plus every distribution reinvested.

Total return and risk statistics by fund. Each row is one fund; each column is one period or statistic.
Symbol	YTD	1Y	3Y	5Y	10Y	Since May 2000	Volatility	Sharpe	Sortino	Max drawdown
IYW	26.81%	39.49%	31.53%	18.76%	24.71%	9.45%	24.4%	0.94	1.35	-26.5%
XLK	30.10%	44.07%	29.30%	19.52%	24.23%	9.31%	25.0%	0.85	1.21	-25.7%

Total return with all distributions reinvested on the ex-dividend date (a modeling convention, not the cash-settlement date), split-adjusted, as of September 4, 2026. YTD and 1Y are cumulative; windows of one year or longer are annualized. “Since May 2000” measures every fund from May 19, 2000 — the youngest fund's first trading day — so all funds share one comparison window. Volatility is the annualized standard deviation of daily total returns over the trailing 3 years. Sharpe and Sortino divide the annualized return in excess of the risk-free rate by, respectively, that volatility and the downside deviation (both over the trailing 3 years) — higher is better. Max drawdown is the largest peak-to-trough total-return decline over the same window — shallower is better.

Side-by-side snapshot

Side-by-side snapshot. Each row is one metric; each column is one fund.
Metric	IYW	XLK
Full name	iShares U.S. Technology ETF	State Street Technology Select Sector SPDR ETF
Issuer	iShares	State Street
Underlying index	Dow Jones U.S. Technology Capped Index	Technology Select Sector Index
Last Close	$253.31 as of September 4, 2026	$187.28 as of September 4, 2026
Distribution rate	0.11%	0.49%
Distribution Safety Score™	77	99
Safety-Adjusted Yield	0.08%	0.49%
Expense ratio	0.37%	0.08%
AUM	$25.1B	$120B
Distribution frequency	Quarterly	Quarterly
Objective	Tracks the Dow Jones U.S. Technology Capped Index.	Track the Technology Select Sector Index, providing exposure to the information technology constituents of the S&P 500.
Asset class	Equity	Equity
Inception date	05/15/2000	12/16/1998
Beta	1.5	1.5
Last dividend	$0.0718	$0.228
Ex-dividend date	06/15/2026	06/22/2026

Bottom lineIYW and XLK are both for investors who want broad equity exposure — so strategy isn't the deciding factor here. Cost is: XLK charges 0.08% against 0.37% for IYW, and between two funds this similar that gap comes straight out of your return every year you hold.

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iShares

ETFs466

Total AUM$4668B

ETFs and AUM reflect what Dividend Vision tracks — the issuer's full lineup may be larger.

iShares is one of the largest ETF providers globally, known for offering a broad, diversified lineup of exchange-traded funds across multiple asset classes and investment strategies. The company operates 215 funds spanning 15 distinct families, including popular offerings in dividend income, covered call strategies, bonds, equities, ESG-focused investments, and factor-based approaches, with widely-held tickers like AGG (bond), ACWI (global equity), and AOA (allocation). iShares is characterized by its comprehensive fund ecosystem that serves both core portfolio holdings and specialized investment strategies, making it a prominent player for investors seeking both traditional and alternative income-generating ETF solutions.

See our curated list of related YouTube videos on IYW.

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State Street

ETFs179

Total AUM$2129B

ETFs and AUM reflect what Dividend Vision tracks — the issuer's full lineup may be larger.

State Street Global Advisors (SSGA) is one of the largest ETF providers globally, known for its flagship SPDR suite of exchange-traded products that serve both institutional and retail investors across a broad range of asset classes. Their 88-fund lineup spans diverse strategies including sector exposure (Select Sector SPDR), income generation (Income and Select Sector SPDR Premium Income families), commodities (including the widely-held GLD gold ETF), bonds, ESG-focused investments, and thematic allocations, with popular tickers like DIA (Diamonds Trust), FEZ (Eurozone exposure), and JNK (high-yield bonds) among their most recognized funds. The issuer is characterized by its comprehensive coverage across multiple market segments and its emphasis on both traditional index-based products and specialized strategies like covered call income funds and factor-based investing.

See our curated list of related YouTube videos on XLK.

See all State Street ETFs

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Quick verdict

IYW (iShares U.S. Technology ETF) and XLK (State Street Technology Select Sector SPDR ETF) are both quarterly-pay dividend ETFs, but they take different approaches.

XLK offers the higher yield at 0.49% vs 0.11% for IYW. A higher yield means more current income per dollar invested, though it may come with different risk characteristics.

XLK is cheaper with an expense ratio of 0.08% compared to 0.37%.

They have different reference exposures: IYW is linked to Dow Jones U.S. Technology Capped Index while XLK is linked to Technology Select Sector Index, which means their performance drivers differ.

XLK is the larger fund by assets ($120B), but assets alone do not establish trading costs or liquidity.

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Deep dive

Yield & income

On a $10,000 investment, IYW would generate roughly $0.92/month, while XLK would produce $4.08/month, at current distribution rates. Both pay quarterly distributions.

IYW yield0.11%

XLK yield0.49%

Monthly diff on $10K$3.17

Cost & efficiency

Over 10 years on $10,000, IYW would cost approximately $370 in fees vs $80 for XLK (simplified, not compounded). The $290.00 difference may be offset by yield or performance.

IYW ER0.37%

XLK ER0.08%

Strategy & risk

IYW tracks Dow Jones U.S. Technology Capped Index, while XLK tracks Technology Select Sector Index with a technology approach.

IYW beta1.5

XLK beta1.5

Fund details

IYW is managed by iShares (launched 05/15/2000) with $25.1B in assets. XLK is managed by State Street (launched 12/16/1998) with $120B in assets.

IYW AUM$25.1B

XLK AUM$120B

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Frequently asked questions

What is the current distribution rate for IYW and XLK?

IYW currently distributes 0.11% and XLK 0.49%, based on fund data updated September 2026. Distribution rate moves with both the payout and the share price, so check the as-of date before relying on either figure.

Is IYW or XLK better for dividend income?

It depends on your goals. XLK currently offers the higher distribution yield, which means more income per dollar invested. However, a lower-yield fund may offer better total return or lower volatility. Consider your time horizon and risk tolerance.

What is the difference between IYW and XLK?

IYW (iShares U.S. Technology ETF) tracks Dow Jones U.S. Technology Capped Index, while XLK (State Street Technology Select Sector SPDR ETF) tracks Technology Select Sector Index with a technology approach. They are issued by iShares and State Street respectively.

Can I hold both IYW and XLK?

Yes — nothing prevents holding both. Whether the combination actually diversifies depends on how much the underlying exposures overlap, which isn't fully measurable from the data on this page; review each security's holdings, sector, and strategy before treating them as complementary.

Is IYW or XLK safer?

By Dividend Vision's Distribution Safety Score — a rules-based 0–100 estimate of how resilient a distribution looks, where higher is safer — XLK scores 99, IYW scores 77, so XLK's payout currently looks the more resilient of the two. No score makes an investment risk-free — treat this as a screening signal, not a guarantee.

Which has lower fees, IYW or XLK?

IYW has an expense ratio of 0.37% while XLK charges 0.08%. Lower fees mean more of your investment returns stay in your pocket over time.

How much income does $10,000 in IYW vs XLK generate?

At current rates, $10,000 in IYW would generate roughly $0.92 per month ($11.00 annually). The same in XLK would produce about $4.08 per month ($49.00 annually).

Which has performed better historically, IYW or XLK?

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IYW vs XLK — at a glance

Generated September 5, 2026.

Overview

IYW and XLK are both technology-focused equity ETFs that track tech-heavy indexes, but they differ in scope and cost structure. IYW tracks the broader Dow Jones U.S. Technology Capped Index, which includes mid and large-cap tech names, while XLK tracks the Technology Select Sector Index—the tech portion of the S&P 500 only. The practical difference: XLK captures only S&P 500 technology constituents, while IYW draws from a wider universe and includes a capped weighting structure.

How they differ

The single biggest difference is index universe: XLK is confined to S&P 500 tech names, whereas IYW's Dow Jones index extends beyond the 500 largest companies into mid-cap technology. This means IYW may hold smaller, non-500-constituent tech firms that XLK excludes entirely.

Second, fees diverge meaningfully. XLK also commands a wider asset base at $120B compared to IYW's $25.1B, which typically improves liquidity and tightens bid-ask spreads.

Third, income generation differs modestly: XLK distributes 0.49%, while IYW yields 0.11%. Both carry the same 1.5 beta, so market sensitivity is identical.

XLK: Designed for investors who want core large-cap technology exposure via S&P 500 constituents and prioritize a lower fee drag and higher distribution rate over access to mid-cap names.

Key risks to know

Index overlap and concentration. Both funds' returns depend heavily on the largest tech names (likely NVIDIA, Microsoft, Apple, others). Their exposures may overlap substantially; verify holdings before combining them.

Tech sector cyclicality. Technology as a sector is sensitive to earnings expectations, interest-rate moves, and shifts in capital spending. A broad market pullback or sector rotation can pressure both funds similarly.

Beta amplification. At 1.5, both funds swing 47% more sharply than the broad market in upswings and downswings. Investors with low loss tolerance may experience outsized drawdowns in tech downturns. Over 20 years, that difference can meaningfully reduce compounded returns if performance tracks closely.

Bottom line

If you want the broadest tech exposure and are willing to accept a higher fee, IYW's inclusion of non-500 mid-cap tech names offers differentiation. If you prefer S&P 500 purity with a lower cost structure and slightly higher yield, XLK's tighter focus and cheaper price win on the mechanics. Both carry tech-sector and volatility risk; past performance doesn't predict future results.

AI-generated analysis for educational purposes only. Verify important details independently; past performance does not guarantee future results.

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