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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.

Updated October 16, 2026

How these figures are calculated: methodology.

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

100% reinvested · ex-date convention. Period returns use this fixed assumption, independent of chart settings. YTD and 1Y are cumulative period returns; 3Y, 5Y, and 10Y are annualized. The shared Since-start window is annualized only when it covers at least one year.

IYW has lagged XLK over the trailing twelve months, posting a 28.02% total return against 29.63%. The picture flips over 10 years, though — IYW has compounded at 24.54% a year, ahead of XLK at 23.97%. 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.
SymbolYTD cumulative1Y cumulative3Y annualized5Y annualized10Y annualizedSince May 2000Volatility Sharpe Sortino Max drawdown
IYW25.93%28.02%32.28%19.20%24.54%9.37%24.5%0.981.40-26.5%
XLK27.90%29.63%29.98%19.54%23.97%9.18%25.1%0.881.26-25.7%

Total return with all distributions reinvested on the ex-dividend date (a modeling convention, not the cash-settlement date), split-adjusted, as of October 16, 2026. YTD and 1Y are cumulative period returns; 3Y, 5Y, and 10Y are annualized. The shared Since-start window is annualized only when it covers at least one year. “Since May 2000” measures every fund from May 19, 2000 — the start of shared available history — 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.
MetricIYWXLK
Full nameiShares U.S. Technology ETFState Street Technology Select Sector SPDR ETF
IssueriSharesState Street
Underlying indexDow Jones U.S. Technology Capped IndexTechnology Select Sector Index
Last Close$251.24 as of October 16, 2026$183.47 as of October 16, 2026
Distribution rate0.08%0.48%
Trailing 12-month yield0.10%0.46%
Distribution Safety Score™ 7296
Safety-Adjusted Yield 0.06%0.46%
Expense ratio0.37%0.08%
AUM$24.4B$121B
Distribution frequencyQuarterlyQuarterly
ObjectiveTracks 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 classEquityEquity
Inception date05/15/200012/16/1998
Beta1.461.45
Last dividend$0.04913$0.221
Ex-dividend date09/15/202609/21/2026

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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See how much monthly income a hypothetical investment would generate in each ETF at current yields.

iShares
ETFs467
Total AUM$4.64T

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

iShares, operated by BlackRock, is one of the largest and most established ETF providers globally, known for offering broad, liquid index-tracking funds across nearly all asset classes and investment styles. The lineup encompasses a comprehensive range of strategies including core equity and bond exposure, dividend and income-focused funds, covered call strategies, ESG and thematic investments, factor-based approaches, alternatives, commodities, and municipal bonds, serving both individual and institutional investors. With numerous popular ticker symbols and extensive diversification across geographies, sectors, and investment objectives, iShares provides one of the market's widest selections of ETFs for building diversified portfolios.

See our curated list of related YouTube videos on IYW.

See all ETFs from iShares
State Street
ETFs186
Total AUM$2.15T

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 ETFs from State Street

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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 0.48% vs 0.08% 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 ($121B), but assets alone do not establish trading costs or liquidity.

Deep dive

Yield & income

On a $10,000 investment, IYW would generate roughly $2.00 cash per distribution, while XLK would produce $12.00 cash per distribution, at current distribution rates. Both pay quarterly distributions.

IYW yield0.08%
XLK yield0.48%
Cash diff on $10K$10.00

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. Beta is 1.46 for IYW and 1.45 for XLK — effectively similar market sensitivity.

IYW beta1.46
XLK beta1.45

Fund details

IYW is managed by iShares (launched 05/15/2000) with $24.4B in assets. XLK is managed by State Street (launched 12/16/1998) with $121B in assets.

IYW AUM$24.4B
XLK AUM$121B
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Frequently asked questions

What is the current distribution rate for IYW and XLK?

IYW currently distributes 0.08% and XLK 0.48%, based on fund data updated October 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 96, IYW scores 72, 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 $2.00 cash per distribution ($8.00 annually). The same in XLK would produce about $12.00 cash per distribution ($48.00 annually).

Which has performed better historically, IYW or XLK?

IYW has lagged XLK over the trailing twelve months, posting a 28.02% total return against 29.63%. The picture flips over 10 years, though — IYW has compounded at 24.54% a year, ahead of XLK at 23.97%. Figures are total returns: price change plus every distribution reinvested. Past performance does not guarantee future results.

More comparisons to explore

IYW vs XLK — at a glance

Generated October 17, 2026.

Overview

IYW and XLK are both large technology-focused ETFs tracking different indexes. IYW follows the Dow Jones U.S. Technology Capped Index and holds a broader universe of tech stocks, while XLK tracks the Technology Select Sector Index, limiting exposure to the tech constituents of the S&P 500. The funds differ most in size, fee structure, and breadth of underlying holdings.

How they differ

XLK is substantially larger, with $121B in assets versus $24.4B for IYW. IYW's capped-index methodology casts a wider net across the tech sector, while XLK's S&P 500 limitation means it holds only the largest and most liquid tech names. XLK offers a higher distribution rate of 0.48% versus 0.08%, though both remain minimal for dividend-focused investors. Beta is nearly identical at 1.46 for IYW and 1.45 for XLK, so neither fund is materially more or less volatile than the other relative to the broad market.

Who each is best for

  • IYW: Fits investors seeking broader exposure to the technology sector beyond the S&P 500's largest names, including mid-cap and growth-stage tech companies, who can absorb a higher expense ratio for that wider universe.
  • XLK: Designed for investors who prioritize low fees and prefer to focus on the mega-cap and large-cap technology leaders that dominate the S&P 500, or who want core technology exposure aligned with benchmark-tracking strategies.

Key risks to know

  • Index-concentration risk: Both funds track tech-heavy indexes, so their holdings may overlap significantly. Tech sector weakness affects both equally. Verify overlap before considering them complementary.
  • Elevated sector beta: At betas near 1.45, both funds amplify market swings relative to the broad market—a 10% market decline could translate to roughly a 14.5% drop in either fund. Technology's earnings sensitivity and valuation volatility drive this risk.
  • Fee drag over time: IYW's 0.37% expense ratio exceeds XLK's 0.08% by 0.29% percentage points. On a $100,000 position held over a decade, that gap accumulates into material opportunity cost.
  • Minimal income: With distribution rates below 0.50%, neither fund is suitable as an income vehicle. Investors should not expect meaningful cash returns.

Bottom line

If you prioritize low fees and broad exposure to S&P 500 technology leaders, XLK's larger asset base and lower expense ratio align with that focus. If you value access to mid-cap and smaller tech names outside the top-tier S&P 500 names, IYW's wider index may justify its higher fee. Both carry similar volatility and negligible yield; past performance does not 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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The metrics behind this comparison, explained in the Academy.

How to read a fund's stats How expense ratios eat returns Correlation between two funds

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These comparisons follow the Dividend Vision methodology.