VBR vs. XLK

Last updated Jun 13, 2026

VBR (Vanguard Small-Cap Value ETF) and XLK (State Street Technology Select Sector SPDR ETF) are both exchange-traded funds - VBR is a Small Cap Value Equities fund tracking the CRSP US Small Cap Value Index, while XLK is a Technology Equities fund tracking the S&P Technology Select Sector Daily Capped 35/20 Index. Both are passively managed. Over the past 10 years, VBR returned 10.99%/yr vs 25.19%/yr for XLK. A 0.68 correlation means they provide meaningful diversification when combined. VBR charges 0.05%/yr vs 0.08%/yr for XLK.

Performance

VBR vs. XLK - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in Vanguard Small-Cap Value ETF (VBR) and State Street Technology Select Sector SPDR ETF (XLK). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, VBR achieves a 14.60% return, which is significantly lower than XLK's 28.52% return. Over the past 10 years, VBR has underperformed XLK with an annualized return of 10.99%, while XLK has yielded a comparatively higher 25.19% annualized return.

VBR

• 1D: 0.87%
• 1M: 4.49%
• YTD: 14.60%
• 6M: 12.92%
• 1Y: 29.93%
• 3Y*: 16.09%
• 5Y*: 8.36%
• 10Y*: 10.99%

XLK

• 1D: 0.87%
• 1M: 2.95%
• YTD: 28.52%
• 6M: 28.96%
• 1Y: 55.42%
• 3Y*: 30.28%
• 5Y*: 22.02%
• 10Y*: 25.19%

*Multi-year figures are annualized to reflect compound growth (CAGR)

VBR vs. XLK - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
VBR Vanguard Small-Cap Value ETF	14.60%	9.09%	12.40%	16.00%	-9.38%	28.08%	5.90%	22.78%	-12.28%	11.81%
XLK State Street Technology Select Sector SPDR ETF	28.52%	24.61%	21.63%	56.02%	-27.73%	34.74%	43.62%	49.86%	-1.68%	34.26%

Correlation

The correlation between VBR and XLK is 0.46, which is low. Their price movements are largely independent, making them effective diversification partners.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	0.46
Correlation (3Y) Calculated over the trailing 3-year period	0.51
Correlation (5Y) Calculated over the trailing 5-year period	0.60
Correlation (10Y) Calculated over the trailing 10-year period	0.59
Correlation (All Time) Calculated using the full available price history since Jan 30, 2004	0.68

Over the past year, the correlation between VBR and XLK has dropped to 0.46 - well below their long-term average of 0.68, suggesting their price drivers have been diverging.

VBR vs. XLK - Sectors Allocation Comparison

Sectors	VBR	XLK
Industrials	18.1%	0.1%
Financial Services	17.6%	-
Consumer Cyclical	12.4%	-
Technology	10.6%	99.7%
Real Estate	10.1%	-
Healthcare	7.9%	-
Basic Materials	6.3%	-
Energy	5.2%	0.2%
Utilities	4.8%	-
Consumer Defensive	4.0%	-
Communication Services	2.5%	-

Return for Risk

VBR vs. XLK — Risk / Return Rank

Compare risk-adjusted metric ranks to identify better-performing investments over the past 12 months.

VBR

VBR Risk / Return Rank: 67
VBR Sharpe Ratio Rank: 64
VBR Sortino Ratio Rank: 68
VBR Omega Ratio Rank: 59
VBR Calmar Ratio Rank: 72
VBR Martin Ratio Rank: 70

XLK

XLK Risk / Return Rank: 76
XLK Sharpe Ratio Rank: 85
XLK Sortino Ratio Rank: 76
XLK Omega Ratio Rank: 78
XLK Calmar Ratio Rank: 75
XLK Martin Ratio Rank: 68

The rank (0–100) shows how this investment's returns compare to the risk taken. Higher = better. Based on the past 12 months of data, combining Sharpe, Sortino, and other metrics used by quantitative funds and institutional investors.

VBR vs. XLK - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Vanguard Small-Cap Value ETF (VBR) and State Street Technology Select Sector SPDR ETF (XLK). Risk-adjusted metrics are performance indicators that assess an investment's returns in relation to its risk, enabling a more accurate comparison of different investment options.

Values are calculated on a 1-year rolling basis and updated daily. Risk-adjusted metrics are more stable over longer periods — use the period switch above to explore them.

	VBR	XLK	Difference
Sharpe ratio: Return per unit of total volatility	1.83	2.37	-0.55
Sortino ratio: Return per unit of downside risk	2.67	2.92	-0.25
Omega ratio: Gain probability vs. loss probability	1.31	1.39	-0.08
Calmar ratio: Return relative to maximum drawdown	3.17	3.36	-0.19
Martin ratio: Return relative to average drawdown	11.22	10.85	+0.37

VBR vs. XLK - Sharpe Ratio Comparison

The current VBR Sharpe Ratio is 1.83, which is comparable to the XLK Sharpe Ratio of 2.37. The chart below compares the historical Sharpe Ratios of VBR and XLK, calculated using daily returns over the previous 12 months. A higher Sharpe Ratio indicates better risk-adjusted performance relative to the risk-free rate.

Drawdowns

VBR vs. XLK - Drawdown Comparison

The maximum VBR drawdown since its inception was -61.98%, smaller than the maximum XLK drawdown of -82.05%. Use the drawdown chart below to compare losses from any high point for VBR and XLK.

Drawdown Indicators

	VBR	XLK	Difference
Max Drawdown Largest peak-to-trough decline	-61.98%	-82.05%	+20.07%
Max Drawdown (1Y) Largest decline over 1 year	-8.85%	-15.92%	+7.07%
Max Drawdown (3Y) Largest decline over 3 years	-24.19%	-25.66%	+1.47%
Max Drawdown (5Y) Largest decline over 5 years	-24.19%	-33.56%	+9.37%
Max Drawdown (10Y) Largest decline over 10 years	-45.28%	-33.56%	-11.72%
Current Drawdown Current decline from peak	0.00%	-6.77%	+6.77%
Average Drawdown Average peak-to-trough decline	-8.26%	-34.93%	+26.67%
Ulcer Index Depth and duration of drawdowns from previous peaks	2.50%	4.92%	-2.42%

Volatility

VBR vs. XLK - Volatility Comparison

The current volatility for Vanguard Small-Cap Value ETF (VBR) is 4.43%, while State Street Technology Select Sector SPDR ETF (XLK) has a volatility of 10.86%. This indicates that VBR experiences smaller price fluctuations and is considered to be less risky than XLK based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	VBR	XLK	Difference
Volatility (1M) Calculated over the trailing 1-month period	4.43%	10.86%	-6.43%
Volatility (6M) Calculated over the trailing 6-month period	10.65%	18.92%	-8.27%
Volatility (1Y) Calculated over the trailing 1-year period	15.36%	22.55%	-7.19%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	19.79%	25.18%	-5.39%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	21.74%	24.64%	-2.90%

VBR vs. XLK - Expense Ratio Comparison

VBR has a 0.05% expense ratio, which is lower than XLK's 0.08% expense ratio. Despite the difference, both funds are considered low-cost compared to the broader market, where average expense ratios usually range from 0.3% to 0.9%.

Dividends

VBR vs. XLK - Dividend Comparison

VBR's dividend yield for the trailing twelve months is around 1.71%, more than XLK's 0.41% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
VBR Vanguard Small-Cap Value ETF	1.71%	1.95%	1.98%	2.12%	2.03%	1.75%	1.68%	2.06%	2.35%	1.79%	1.77%	1.99%
XLK State Street Technology Select Sector SPDR ETF	0.41%	0.54%	0.66%	0.76%	1.04%	0.65%	0.92%	1.16%	1.60%	1.37%	1.74%	1.79%

Frequently Asked Questions

Can I hold both VBR and XLK in my portfolio?

VBR and XLK have a correlation of 0.46, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, VBR or XLK?

XLK has higher volatility (10.86%) compared to VBR (4.43%). In terms of maximum drawdown, VBR dropped -61.98% vs XLK's -82.05%.

Which ETF is better, VBR or XLK?

On 10-year performance, XLK leads with 25.19% vs 10.99% for VBR. On fees, VBR is cheaper at 0.05% per year. On volatility, VBR has been the lower-risk option at 4.43%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, VBR or XLK?

Over the 10-year period, XLK has performed better with a 25.19% return vs 10.99%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, VBR or XLK?

VBR is cheaper with a 0.05% expense ratio, compared with 0.08% for XLK.

Which ETF pays a higher dividend yield, VBR or XLK?

VBR has the higher dividend yield at 1.71%, compared with 0.41% for XLK.

What is the main difference between VBR and XLK?

VBR is categorized as Small Cap Value Equities, while XLK is Technology Equities. VBR tracks CRSP US Small Cap Value Index, while XLK tracks S&P Technology Select Sector Daily Capped 35/20 Index. They also come from different issuers: Vanguard and State Street. Their fees differ too: 0.05% for VBR and 0.08% for XLK.

Which has better risk-adjusted returns?

XLK currently has the higher Sharpe Ratio (2.37 vs 1.83), meaning it's delivered slightly more return per unit of risk over the trailing 12 months. However, this ranking shifts over time - use the Risk/Return Score above for a more comprehensive view that combines Sharpe, Sortino, and other measures used by quantitative funds.