# ETFs and Stocks That Consistently Outperformed XLK (Technology Sector)

> Source: BetterThanSPY research, https://betterthanspy.com/research/etfs-and-stocks-that-outperform-xlk
> Data as of October 22, 2026. Total returns include reinvested dividends. Past performance does not predict future results; nothing here is investment advice.

XLK (State Street Technology Select Sector SPDR ETF) screened against the entire market of over 10,000 stocks and ETFs over 8 periods from 1 month to 10 years, with dividends reinvested. To make the list, an investment had to outperform XLK in at least 3 of 5 short-term periods and 2 of 3 long-term periods. "All-weather" means outperforming in every long-term period and all but one short-term period. Returns in the tables are total returns over each period; volatility and Sharpe ratio cover 5 years.

## Key findings

- How hard it was to top XLK: Out of over 10,000 stocks and ETFs screened, just 2 of 957 eligible ETFs (0.2%) and 103 of 1,502 eligible stocks (6.9%) outperformed in at least 3 of 5 short-term periods and 2 of 3 long-term periods. None of the ETFs were all-weather, while 22 stocks were, meaning they outperformed in every long-term period and all but one short-term period.
- Who came out ahead across the three groups:
  - Popular alternatives: SMH outperformed in 3 of 3 long-term periods but only 2 of 5 short-term periods, so it missed the consistency bar. AAPL led in the short term with 5 of 5 periods but outperformed in just 1 of 3 long-term periods. MSFT managed 3 of 5 short-term periods and 1 of 3 long-term periods, while VGT had 2 of 5 and 1 of 3, respectively. No same-index funds were excluded.
  - Top ETFs: The two ETFs that qualified came from Technology and Broad Market categories. EWT outperformed in 4 of 5 short-term periods and 2 of 3 long-term periods, while IYW did so in 3 of 5 and 2 of 3.
  - Top stocks: 103 stocks qualified, including 22 all-weather stocks. The top stocks shown include healthcare companies NTRA and HALO, technology companies FTNT and PANW, and industrials BWLP and FRO.
- The risk trade-off: Over 5 years, the top ETFs had median volatility of 25.5%, similar to XLK's 26.1%; 1 of 2 was less volatile and 1 of 2 had a higher Sharpe ratio. The top stocks were much more volatile, with median volatility of 44.6%, and 5 of 10 had higher Sharpe ratios than XLK. The riskier ride therefore came with better risk-adjusted returns for about half of the stocks.

## How popular alternatives compare

| Investment | Status | Periods outperformed | 1M | 3M | 6M | YTD | 1Y | 3Y | 5Y | 10Y | Volatility | Sharpe |
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |
| XLK: State Street Technology Select Sector SPDR ETF (benchmark) |  |  | −7.1% | +1.3% | +15.6% | +26.8% | +28.4% | +126% | +139% | +741% | 26.1% | 0.80 |
| [SMH](https://betterthanspy.com/research/smh): VanEck Semiconductor ETF | Fell short | 2/5 short, 3/3 long | −13.8% | −10.8% | +9.8% | +40.2% | +55.0% | +272% | +304% | +1,570% | 37.0% | 0.94 |
| [AAPL](https://betterthanspy.com/research/aapl): Apple Inc. | Fell short | 5/5 short, 1/3 long | +2.5% | +6.9% | +27.7% | +28.8% | +35.2% | +104% | +140% | +1,194% | 28.0% | 0.77 |
| [MSFT](https://betterthanspy.com/research/msft): Microsoft Corporation | Fell short | 3/5 short, 1/3 long | +4.6% | +33.7% | +20.9% | +10.9% | +0.9% | +61.9% | +75.6% | +862% | 28.2% | 0.54 |
| [VGT](https://betterthanspy.com/research/vgt): Vanguard Information Technology ETF | Fell short | 2/5 short, 1/3 long | −6.1% | +2.7% | +15.4% | +25.9% | +26.7% | +135% | +130% | +753% | 26.1% | 0.77 |
| FTEC: Fidelity MSCI Information Technology Index ETF | Fell short | 2/5 short, 1/3 long | −6.1% | +2.6% | +15.4% | +25.9% | +26.9% | +136% | +132% | +737% | 26.1% | 0.78 |
| SKYY: First Trust Cloud Computing ETF | Fell short | 4/5 short, 0/3 long | −1.8% | +23.4% | +34.6% | +28.6% | +22.2% | +124% | +44.2% | +392% | 31.4% | 0.39 |
| IGV: iShares Expanded Tech-Software Sector ETF | Fell short | 3/5 short, 0/3 long | +1.8% | +22.1% | +22.5% | +6.0% | −4.2% | +60.5% | +25.5% | +381% | 28.9% | 0.30 |
| [AMZN](https://betterthanspy.com/research/amzn): Amazon.com, Inc. | Fell short | 2/5 short, 0/3 long | −1.8% | +2.3% | −1.9% | +10.5% | +14.9% | +97.8% | +50.1% | +498% | 36.6% | 0.41 |
| [SPY](https://betterthanspy.com/research/spy): State Street SPDR S&P 500 ETF | Fell short | 2/5 short, 0/3 long | −1.2% | +2.5% | +8.0% | +12.7% | +15.6% | +88.4% | +80.3% | +316% | 17.2% | 0.78 |
| [VTI](https://betterthanspy.com/research/vti): Vanguard Morningstar Total Stock Market ETF | Fell short | 2/5 short, 0/3 long | −1.4% | +1.9% | +7.3% | +12.4% | +15.3% | +87.3% | +71.5% | +298% | 17.5% | 0.71 |
| [QQQ](https://betterthanspy.com/research/qqq): Invesco QQQ Trust, Series 1 | Fell short | 1/5 short, 0/3 long | −5.8% | 0.0% | +7.8% | +15.3% | +16.9% | +101% | +94.0% | +531% | 23.0% | 0.69 |
| QQEW: First Trust Nasdaq-100 Select Equal Weight ETF | Fell short | 1/5 short, 0/3 long | −6.0% | +1.2% | +11.5% | +9.7% | +8.7% | +55.7% | +36.5% | +258% | 21.3% | 0.40 |
| [IWM](https://betterthanspy.com/research/iwm): iShares Russell 2000 ETF | Fell short | 1/5 short, 0/3 long | −3.7% | −5.6% | +0.6% | +12.0% | +14.8% | +73.3% | +29.4% | +157% | 22.4% | 0.34 |

## ETFs that consistently outperformed XLK

| Investment | Periods outperformed | 1M | 3M | 6M | YTD | 1Y | 3Y | 5Y | 10Y | Volatility | Sharpe | Expense | Assets |
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |
| XLK: State Street Technology Select Sector SPDR ETF (benchmark) |  | −7.1% | +1.3% | +15.6% | +26.8% | +28.4% | +126% | +139% | +741% | 26.1% | 0.80 |  |  |
| EWT: iShares MSCI Taiwan ETF | 4/5 short, 2/3 long | −9.7% | +2.3% | +20.7% | +60.6% | +67.3% | +187% | +147% | +448% | 24.3% | 0.87 | 0.59% | $12B |
| IYW: iShares U.S. Technology ETF | 3/5 short, 2/3 long | −6.4% | +2.4% | +16.3% | +24.7% | +26.1% | +138% | +135% | +773% | 26.7% | 0.78 | 0.37% | $24B |

## Stocks that consistently outperformed XLK

| Investment | Periods outperformed | 1M | 3M | 6M | YTD | 1Y | 3Y | 5Y | 10Y | Volatility | Sharpe | Market cap |
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |
| XLK: State Street Technology Select Sector SPDR ETF (benchmark) |  | −7.1% | +1.3% | +15.6% | +26.8% | +28.4% | +126% | +139% | +741% | 26.1% | 0.80 |  |
| [NTRA](https://betterthanspy.com/research/ntra): Natera, Inc. | 5/5 short, 3/3 long, all-weather | +2.7% | +51.9% | +93.2% | +75.4% | +113% | +901% | +249% | +3,934% | 57.6% | 0.73 | $58B |
| [FTNT](https://betterthanspy.com/research/ftnt): Fortinet, Inc. | 5/5 short, 3/3 long, all-weather | −0.7% | +11.6% | +98.6% | +122% | +104% | +208% | +158% | +2,668% | 44.8% | 0.65 | $127B |
| BWLP: BW LPG Limited | 5/5 short, 3/3 long, all-weather | +1.2% | +20.7% | +46.1% | +116% | +129% | +232% | +966% | +2,648% | 50.9% | 1.19 | $3.8B |
| [MPC](https://betterthanspy.com/research/mpc): Marathon Petroleum Corporation | 5/5 short, 3/3 long, all-weather | +17.9% | +45.8% | +108% | +181% | +148% | +226% | +660% | +1,314% | 33.4% | 1.39 | $129B |
| [PANW](https://betterthanspy.com/research/panw): Palo Alto Networks, Inc. | 5/5 short, 3/3 long, all-weather | −5.2% | +5.9% | +95.9% | +97.9% | +67.1% | +188% | +322% | +1,306% | 43.4% | 0.89 | $290B |
| WSM: Williams-Sonoma, Inc. | 5/5 short, 3/3 long, all-weather | +12.4% | +17.7% | +33.1% | +40.7% | +40.7% | +249% | +202% | +1,298% | 44.4% | 0.72 | $31B |
| FRO: Frontline Plc | 5/5 short, 3/3 long, all-weather | +6.9% | +41.8% | +62.0% | +182% | +148% | +222% | +762% | +1,270% | 49.7% | 1.12 | $11B |
| HALO: Halozyme Therapeutics, Inc. | 5/5 short, 3/3 long, all-weather | +8.2% | +60.0% | +82.1% | +77.1% | +89.4% | +258% | +220% | +1,255% | 40.4% | 0.78 | $14B |
| ANF: Abercrombie & Fitch Co. | 5/5 short, 3/3 long, all-weather | +18.6% | +68.2% | +74.7% | +30.6% | +136% | +169% | +323% | +1,132% | 62.9% | 0.77 | $6.9B |
| DHT: DHT Holdings, Inc. | 5/5 short, 3/3 long, all-weather | +12.8% | +41.9% | +50.2% | +133% | +126% | +207% | +443% | +1,094% | 39.0% | 1.07 | $3.9B |

## What stands out

The results show how selective it was to keep ahead of a technology-sector benchmark across both recent and longer periods. The ETF leaders were not limited to US technology: EWT, a Taiwan-focused fund, and IYW, a broad US technology fund, qualified. Among the popular comparisons, SMH held a long-term lead but did not sustain it across enough short-term periods. AAPL showed the reverse pattern, with a stronger short-term record but limited long-term outperformance.

The stock winners came from several sectors, including healthcare, technology, industrials, energy, and consumer discretionary, rather than one narrow theme. All 10 stocks shown had higher volatility than XLK over 5 years, while only 5 of 10 had a higher Sharpe ratio, a measure of return relative to risk. Some stocks therefore gained enough extra return to offset their bumpier ride, but that was not true across the group.

## More research

- [ETFs and Stocks That Consistently Outperformed SMH (Semiconductors)](https://betterthanspy.com/research/etfs-and-stocks-that-outperform-smh)
- [ETFs and Stocks That Consistently Outperformed XLF (Financial Sector)](https://betterthanspy.com/research/etfs-and-stocks-that-outperform-xlf)
- [ETFs and Stocks That Consistently Outperformed SPY (S&P 500)](https://betterthanspy.com/research/etfs-and-stocks-that-outperform-spy)
- [ETFs and Stocks That Consistently Outperformed VOO (S&P 500)](https://betterthanspy.com/research/etfs-and-stocks-that-outperform-voo)
- [ETFs and Stocks That Consistently Outperformed VTI (Total US Stock Market)](https://betterthanspy.com/research/etfs-and-stocks-that-outperform-vti)
- [ETFs and Stocks That Consistently Outperformed QQQ (Nasdaq-100)](https://betterthanspy.com/research/etfs-and-stocks-that-outperform-qqq)
- [ETFs and Stocks That Consistently Outperformed DIA (Dow Jones Industrial Average)](https://betterthanspy.com/research/etfs-and-stocks-that-outperform-dia)
- [ETFs and Stocks That Consistently Outperformed IWM (Russell 2000 Small Caps)](https://betterthanspy.com/research/etfs-and-stocks-that-outperform-iwm)
- [ETFs and Stocks That Consistently Outperformed VXUS (International Stocks)](https://betterthanspy.com/research/etfs-and-stocks-that-outperform-vxus)
- [ETFs and Stocks That Consistently Outperformed NVDA (Nvidia)](https://betterthanspy.com/research/etfs-and-stocks-that-outperform-nvda)
- [ETFs and Stocks That Consistently Outperformed AAPL (Apple)](https://betterthanspy.com/research/etfs-and-stocks-that-outperform-aapl)
- [ETFs and Stocks That Consistently Outperformed MSFT (Microsoft)](https://betterthanspy.com/research/etfs-and-stocks-that-outperform-msft)

## Explore further

- Full page: https://betterthanspy.com/research/etfs-and-stocks-that-outperform-xlk
- All research pages: https://betterthanspy.com/llms.txt