A head-to-head comparison of State Street Communication Services Select Sector SPDR ETF and Technology Select Sector SPDR Fund covering yield, cost, risk, and income potential.
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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 XLC and XLK.
Projections assume the current yield and share price remain constant. Actual results will vary.
Total returns
XLC has lagged XLK over the trailing twelve months, posting a 5.43% total return against 44.41%. The lead holds up over 5 years too: XLK has compounded at 20.19% a year, against 7.42% for XLC. XLC has been the steadier holding, though — annualized volatility of 16.7% against 24.6% for XLK. Figures are total returns: price change plus every distribution reinvested.
Total return with all distributions reinvested on the ex-dividend date, split-adjusted, as of July 14, 2026. YTD and 1Y are cumulative; longer windows are annualized. “Since Jun 2018” measures every fund from June 19, 2018 — 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.
Quick verdict
XLC (State Street Communication Services Select Sector SPDR ETF) and XLK (Technology Select Sector SPDR Fund) are both quarterly-pay dividend ETFs, but they take different approaches.
XLC offers the higher yield at 1.02% vs 0.50% for XLK. A higher yield means more current income per dollar invested, though it may come with different risk characteristics.
They track different benchmarks: XLC is linked to Communication Services Select Sector Index while XLK tracks Technology Select Sector Index, which means their performance drivers differ.
XLK is the larger fund by assets ($118B), which generally means tighter spreads and better liquidity.
Deep dive
Yield & income
On a $10,000 investment, XLC would generate roughly $8.50/month, while XLK would produce $4.17/month, at current distribution rates. Both pay quarterly distributions.
XLC yield1.02%
XLK yield0.50%
Monthly diff on $10K$4.33
Cost & efficiency
Over 10 years on $10,000, XLC would cost approximately $90 in fees vs $90 for XLK (simplified, not compounded). Both charge the same expense ratio.
XLC ER0.09%
XLK ER0.09%
Strategy & risk
XLC tracks Communication Services Select Sector Index with a communication services approach, while XLK tracks Technology Select Sector Index with a technology approach. Beta is 0.85 for XLC and 1.43 for XLK, indicating XLC is less volatile relative to the market.
XLC beta0.85
XLK beta1.43
Fund details
XLC is managed by State Street (launched 06/18/2018) with $23.8B in assets. XLK is managed by State Street (launched 12/16/1998) with $118B in assets.
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Frequently asked questions
Is XLC or XLK better for dividend income?
It depends on your goals. XLC 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 XLC and XLK?
XLC (State Street Communication Services Select Sector SPDR ETF) tracks Communication Services Select Sector Index with a communication services approach, while XLK (Technology Select Sector SPDR Fund) tracks Technology Select Sector Index with a technology approach. They are issued by State Street and State Street respectively.
Can I hold both XLC 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.
Which has lower fees, XLC or XLK?
XLC and XLK both charge the same expense ratio of 0.09%, so neither is cheaper on fees — pick based on yield, strategy, or underlying index instead.
How much income does $10,000 in XLC vs XLK generate?
At current rates, $10,000 in XLC would generate roughly $8.50 per month ($102.00 annually). The same in XLK would produce about $4.17 per month ($50.00 annually).
Which has performed better historically, XLC or XLK?
XLC has lagged XLK over the trailing twelve months, posting a 5.43% total return against 44.41%. The lead holds up over 5 years too: XLK has compounded at 20.19% a year, against 7.42% for XLC. XLC has been the steadier holding, though — annualized volatility of 16.7% against 24.6% for XLK. Figures are total returns: price change plus every distribution reinvested. Past performance does not guarantee future results.
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