Dividend comparison
XLK vs IYW: Which Is Better?
Fees, yield, total returns, drawdowns, holdings overlap and dividend history for State Street Technology Select Sector SPDR ETF and iShares U.S. Technology ETF, side by side. Updated October 21, 2026.
XLK vs IYW: key differences
The short answer, from the latest data on this page.
- Fees. XLK is cheaper at 0.08% a year versus 0.37% for IYW. On $10,000 that is $29 a year less in fees.
- Income. XLK pays more income, yielding 0.45% over the last twelve months versus 0.10% for IYW. That is about $35 more a year on $10,000. Both pay annual.
- Performance. Over the last 5 years, XLK returned 142.8% versus 138.2% for IYW, with dividends reinvested. $10,000 would have grown to $24,275 in XLK and $23,819 in IYW.
- Risk. IYW has been the bumpier ride. Its worst peak-to-trough decline over the last 5 years was -39.4%, against -33.6% for XLK.
- Diversification. IYW holds 148 positions and XLK holds 75. The ten largest positions make up 65.2% of XLK and 65.7% of IYW.
- Overlap. 81% of the two portfolios overlap by weight, across 61 shared holdings. Owning both adds little diversification.
- Dividend growth. XLK grew its yearly payout 8.7% a year over the last 4 years, versus -6.3% for IYW.
- Size. XLK is the larger fund with $120.7 billion in assets, against $24.5 billion for IYW.
Bottom line: XLK fits better if you care most about lower fees, more income today, stronger 5-year returns, smaller drawdowns and faster dividend growth. IYW fits better if you care most about broader diversification. With 81% overlap, most investors would hold one or the other rather than both.
Side-by-side snapshot
Trailing twelve-month figures where available. Higher yield is highlighted — not a buy recommendation.
| Metric | XLK State Street Technology Select Sector SPDR ETF | IYW iShares U.S. Technology ETF |
|---|---|---|
| Dividend yield (TTM) | 0.45% | 0.10% |
| Dividend / share (TTM) | $0.83 | $0.25 |
| Payout frequency | Annual | Annual |
| Last dividend | $0.2207 on Sep 23, 2026 | $0.0491 on Sep 18, 2026 |
| Ex-dividend date | Sep 21, 2026 | Sep 15, 2026 |
| Dividend growth (CAGR) | 8.7% over 4 yrs | -6.3% over 4 yrs |
| Price | $185.44 | $253.34 |
| Dividend growth streak | 4 years | — |
| Beta | 1.35 | 1.35 |
| Max drawdown (5Y) | -33.6% | -39.4% |
| Market cap | $120.98B | $24.41B |
| Exchange | AMEX | AMEX |
| Expense ratio | 0.08% | 0.37% |
| Assets under management | $120.70B | $24.53B |
| Number of holdings | 75 | 148 |
| Top 10 concentration | 65.2% | 65.7% |
Income on a $10,000 investment
Illustrative only — assumes current TTM yield stays constant. Actual distributions change.
XLK
$3.75/mo
$45 /yr at 0.45% yield
IYW
$0.81/mo
$10 /yr at 0.10% yield
Dividend history
Total dividends paid per share in each calendar year. XLK pays annual; IYW pays annual.
| Year | XLK | IYW |
|---|---|---|
| 2025 | $0.7840 | $0.2762 |
| 2024 | $0.7617 | $0.3316 |
| 2023 | $0.7297 | $0.4882 |
| 2022 | $0.6453 | $0.3756 |
| 2021 | $0.5613 | $0.3587 |
Strategy: Sector and thematic
Funds that hold a single industry or theme, such as technology, semiconductors, healthcare or energy. Funds covering the same sector can still differ in concentration rules: some cap the largest positions while others let the biggest companies take a quarter of the fund. Sector funds are usually used to tilt a portfolio rather than as its core.
A single sector can fall far further than the broad market and stay down for years, and the largest names often dominate the fund.
Performance
Total returns with dividends reinvested, from the adjusted closing price series. $10,000 invested on Oct 20, 2021 would now be worth $24,275 in XLK and $23,819 in IYW.
| Period | XLK | IYW |
|---|---|---|
| 1 month | -2.08% | -1.37% |
| 3 months | 5.66% | 5.59% |
| Year to date | 29.27% | 26.98% |
| 1 year | 29.34% | 27.02% |
| 3 years | 130.27% | 142.78% |
| 5 years | 142.75% | 138.19% |
- XLK
- IYW
Both series indexed to 100 on 2021-10-20 using the adjusted closing price series. Past performance does not guarantee future results.
Sector allocation
Weight of each sector within the fund. Sectors are aligned on the same row so the two funds can be read against each other directly.
- XLK
- IYW
XLK vs IYW holdings overlap
81% overlap by weight, with 61 holdings in common. Overlap adds up the smaller of the two weights for every stock both funds own, so 100% would mean identical portfolios.
| Largest shared holdings | XLK weight | IYW weight |
|---|---|---|
| NVDANVIDIA CORP | 15.45% | 16.88% |
| AAPLAPPLE INC | 14.94% | 16.54% |
| MSFTMICROSOFT CORP | 11.71% | 13.23% |
| AVGOBROADCOM INC | 4.66% | 3.10% |
| AMDADVANCED MICRO DEVICES | 4.66% | 2.94% |
| MUMICRON TECHNOLOGY INC | 3.92% | 2.68% |
| PLTRPALANTIR TECHNOLOGIES INC A | 2.58% | 2.15% |
| INTCINTEL CORP | 2.69% | 2.10% |
| LRCXLAM RESEARCH CORP | 1.99% | 1.70% |
| AMATAPPLIED MATERIALS INC | 1.96% | 1.63% |
Top 10 holdings
Largest positions by portfolio weight.
XLK75 holdings total
Quick verdict
XLK fits better if you care most about lower fees, more income today, stronger 5-year returns, smaller drawdowns and faster dividend growth. IYW fits better if you care most about broader diversification. With 81% overlap, most investors would hold one or the other rather than both. Model the holding inside your real portfolio before deciding.
Still deciding? Compare them in your portfolio
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Frequently asked questions
Is XLK or IYW better for dividend income?
It depends on your goals. XLK currently yields 0.45% Trailing Twelve Months (TTM) while IYW yields 0.10%. Higher yield means more current income per dollar invested, but may come with different risk, growth, or NAV characteristics. Compare total return and payout sustainability — not just the headline yield.
What is the difference between XLK and IYW?
State Street Technology Select Sector SPDR ETF (XLK) is an ETF listed on AMEX. iShares U.S. Technology ETF (IYW) is an ETF listed on AMEX. Side-by-side metrics on this page cover yield, fees, returns, drawdowns, holdings overlap and dividend history when available.
Which is cheaper, XLK or IYW?
XLK has the lower expense ratio. XLK charges 0.08% a year and IYW charges 0.37%, a difference of $29 a year on a $10,000 investment.
Which has performed better, XLK or IYW?
Over the last 5 years, XLK has the higher total return with dividends reinvested: XLK returned 142.8% and IYW returned 138.2%. Past performance does not predict future returns.
Which is riskier, XLK or IYW?
Measured by the worst peak-to-trough decline over the last five years, IYW has been riskier: XLK fell as much as 33.6% and IYW as much as 39.4%. Their betas are 1.35 and 1.35.
How much do XLK and IYW overlap?
About 81% of the two portfolios overlap by weight, across 61 shared holdings. The largest shared positions are NVDA, AAPL, MSFT. Holding both adds little diversification.
How often do XLK and IYW pay dividends?
Both pay annual. The most recent payments were $0.2207 for XLK and $0.0491 for IYW.
How much income does $10,000 in XLK vs IYW generate?
At current TTM yields, $10,000 in XLK would generate roughly $3.75 per month ($45 annually). The same amount in IYW would produce about $0.81 per month ($10 annually). Actual payouts vary with distribution changes and reinvestment.
Can I hold both XLK and IYW?
Yes. Many income investors hold both to diversify strategy or index exposure. Whether the combination actually diversifies depends on overlapping holdings and factor exposure. Model both inside Dividend Wealth to see combined income, sector mix, and forecast impact.
Where can I compare XLK vs IYW with my full portfolio?
Create a free Dividend Wealth account to import or enter holdings, forecast dividend income, and see how XLK and IYW fit alongside the rest of your portfolio. A 14-day free trial of Standard is available with no credit card required; a limited Free plan is also available.
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For informational and educational purposes only. Not investment advice. Past performance and current yields do not guarantee future results. Verify figures independently before making investment decisions.