What if you invested monthly in a technology sector ETF (XLK) for 20 years?
XLK holds large US technology stocks as a sector ETF. From 2006, 20 years runs through the smartphone revolution and the AI phase while also passing the financial crisis.
Investment conditions
Asset · Technology Sector ETF (XLK)
Method · Recurring monthly investment
Period · 2006-07-01 ~ 2026-07-01
Amount · $222 / month
As of · 2026-07-01
Key metrics
These results do not reflect taxes. Based on historical data.
Risk & recovery
As important as returns. This service does not hide maximum drawdown or loss periods.
Maximum drawdown (MDD)
-36.4%
Largest drop from peak
Longest loss period
16months
Months in loss: 21
Recovery period
9months
Growth over time
Invested principal (dashed) and portfolio value (solid). Values below match the calculation.
Total invested $53,556 → Final value $562,188 (+949.7%), Maximum drawdown (MDD) -36.4%
Why this period and asset
The 20 years starting in July 2006 open with the 2008 global financial crisis, a major crash. They then run through the smartphone revolution sparked by the 2007 iPhone, the spread of cloud and mobile, the 2020 pandemic crash and rapid rebound, the 2022 rate-hike tech correction, and the AI phase from 2023, with technology leading the market throughout. XLK centers on large software, hardware, and chip firms, broadly reflecting the rise of US tech.
Interpreting the result
Over a 20-year span, compounding becomes the central axis, but the tech sector swings more widely than the broad market. This window contains large maximum drawdowns and long stretches below invested cost in the 2008 crisis and the 2022 correction, with phases that took time to recover. Buying a fixed amount each month accumulated more units at low prices in the crashes, and holding through them let the recovery lift those purchases. Still, as a result concentrated in one sector, performance is more sensitive to style rotation and sector cycles than the broad market.
Caveats & limits
This is a simplified simulation that ignores taxes, trading fees, and currency effects. A sector ETF is concentrated in one industry and is more volatile than the broad market. Past performance does not guarantee future returns and depends on one specific start date. Figures follow USD-based prices; returns in another currency depend on exchange rates.
Data sources & limits
- Price data source: Yahoo Finance / FinanceDataReader
- Collected on: 2026-07-23
- Effective trading date: 2026-07-01
- Price basis: Adjusted close (reflects dividends and stock splits)
- Trading fees and taxes are not reflected — figures are pre-tax.
- Based on historical data; does not guarantee future returns.
Frequently asked questions
How does XLK differ from the Nasdaq 100?
XLK holds only companies classified in the technology sector within the S&P 500. The Nasdaq 100 is not a sector but a broad set of large Nasdaq-listed firms, so their holdings differ.
Will tech keep leading the market?
Two decades of leadership do not guarantee the future. Sector leadership can rotate over time, and large drawdowns and time-underwater can recur.
Does holding only a sector ETF give diversification?
Concentrating in one sector ties your results to that sector's cycle. It can show larger drawdowns and volatility than a broad-market index spanning many sectors.
Related scenarios
📋 Results are based on historical data; past returns do not guarantee future returns.
📋 This service is provided for educational purposes to help you understand investing, not as investment advice.