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 18, 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

100% reinvested · ex-date convention. Period returns use this fixed assumption, independent of chart settings.

IYW has lagged XLK over the trailing twelve months, posting a 35.99% total return against 40.44%. The picture flips over 10 years, though — IYW has compounded at 24.91% a year, ahead of XLK at 24.45%. 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	28.62%	35.99%	33.63%	19.68%	24.91%	9.50%	24.4%	1.01	1.45	-26.5%
XLK	31.71%	40.44%	31.59%	20.41%	24.45%	9.34%	25.0%	0.92	1.32	-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 18, 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 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.
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	$256.87 as of September 18, 2026	$189.60 as of September 18, 2026
Distribution rate	0.08%	0.48%
Distribution Safety Score™	72	99
Safety-Adjusted Yield	0.06%	0.48%
Expense ratio	0.37%	0.08%
AUM	$24.9B	$119B
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	$0.0491 payable today	$0.228
Ex-dividend date	09/15/2026	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$4551B

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$2092B

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 0.48% 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 ($119B), 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 $0.67/month, while XLK would produce $4.00/month, at current distribution rates. Both pay quarterly distributions.

IYW yield0.08%

XLK yield0.48%

Monthly diff on $10K$3.33

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 $24.9B in assets. XLK is managed by State Street (launched 12/16/1998) with $119B in assets.

IYW AUM$24.9B

XLK AUM$119B

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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 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 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 $0.67 per month ($8.00 annually). The same in XLK would produce about $4.00 per month ($48.00 annually).

Which has performed better historically, IYW or XLK?

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IYW vs XLK — at a glance

Generated September 19, 2026.

Overview

IYW and XLK are both technology-focused equity ETFs that track capped or sector-specific indexes, but they differ meaningfully in scope and cost. IYW follows the Dow Jones U.S. Technology Capped Index and charges 0.37%, while XLK tracks the Technology Select Sector Index (the tech portion of the S&P 500) and costs 0.08%. The key distinction: IYW casts a wider net across the entire technology universe, whereas XLK limits itself to large-cap S&P 500 constituents.

How they differ

XLK's most significant advantage is its expense ratio. At 0.08%, it's roughly one-fifth the cost of IYW's 0.37% — a substantial drag for a passive index tracker.

On yield, XLK edges ahead with a 0.48% distribution rate versus IYW's 0.08%, though neither fund prioritizes income — both are growth-oriented technology plays. Both ETFs share the same 1.5 beta, meaning they move in lockstep with broad market volatility. The structural difference lies in the underlying index: IYW's capped index may include smaller-cap technology names outside the S&P 500, while XLK's sector definition restricts exposure to S&P 500 members only.

Who each is best for

IYW: Fits investors seeking broader technology exposure across the entire capitalization spectrum, including mid-cap and smaller technology firms that may miss the S&P 500.

XLK: Designed for investors who prefer a lower-cost technology position tied exclusively to large-cap S&P 500 constituents and who value maximum trading liquidity and minimal fees.

Key risks to know

Index composition overlap: Both funds track technology-focused indexes, but their constituent overlap may be substantial; holdings should be verified before combining them to ensure you're not doubling down unintentionally.

Sector concentration risk: Technology remains cyclical and dominated by a handful of mega-cap names (semiconductors, software, hardware); both ETFs concentrate significant portfolio weight in a single economic sector vulnerable to regulatory and competitive disruption.

Beta amplification: Both ETFs carry a 1.5 beta, meaning they amplify broad market declines by 50% — a tech downturn will hit both with outsized volatility relative to the overall market.

Valuation sensitivity: Technology equities are more sensitive to interest-rate expectations than other sectors; rising rates can pressure multiples across both portfolios regardless of underlying earnings quality. If you want broader technology universe access and are willing to accept higher fees, IYW may cast a wider net — though the fee difference will compound significantly over time. Both carry sector and volatility risk inherent to technology equities; past performance does not guarantee future results.

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

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