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VDY.TO vs. XLK
Performance
Return for Risk
Drawdowns
Volatility
Dividends

VDY.TO vs. XLK

Last updated Jun 14, 2026

VDY.TO (Vanguard FTSE Canadian High Dividend Yield Index ETF) and XLK (State Street Technology Select Sector SPDR ETF) are both exchange-traded funds - VDY.TO is a Dividend fund tracking the FTSE Canada High Dividend Yield 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, VDY.TO returned 14.58%/yr vs 26.27%/yr for XLK. At a 0.40 correlation, their price movements are largely independent. VDY.TO charges 0.22%/yr vs 0.08%/yr for XLK.

Performance

VDY.TO vs. XLK - Performance Comparison

The chart below illustrates the hypothetical performance of a CA$10,000 investment in Vanguard FTSE Canadian High Dividend Yield Index ETF (VDY.TO) and State Street Technology Select Sector SPDR ETF (XLK). The values are adjusted to include any dividend payments, if applicable.

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Different Trading Currencies

VDY.TO is traded in CAD, while XLK is traded in USD. To make them comparable, the XLK values have been converted to CAD using the latest available exchange rates.

Returns By Period

In the year-to-date period, VDY.TO achieves a 23.81% return, which is significantly lower than XLK's 31.13% return. Over the past 10 years, VDY.TO has underperformed XLK with an annualized return of 14.58%, while XLK has yielded a comparatively higher 26.27% annualized return.

VDY.TO

1D
0.65%
1M
5.30%
YTD
23.81%
6M
23.43%
1Y
49.57%
3Y*
27.42%
5Y*
17.91%
10Y*
14.58%

XLK

1D
1.05%
1M
4.96%
YTD
31.13%
6M
30.81%
1Y
59.71%
3Y*
32.23%
5Y*
25.59%
10Y*
26.27%
*Multi-year figures are annualized to reflect compound growth (CAGR)

VDY.TO vs. XLK - Yearly Performance Comparison

2026 (YTD)202520242023202220212020201920182017
VDY.TO
Vanguard FTSE Canadian High Dividend Yield Index ETF		23.81%29.21%21.44%8.41%-0.23%36.60%-1.37%21.42%-10.09%8.32%
XLK
State Street Technology Select Sector SPDR ETF		31.13%18.92%31.93%52.31%-23.15%34.68%40.21%43.68%6.59%25.17%

Correlation

The correlation between VDY.TO and XLK is 0.24, which is low. Their price movements are largely independent, making them effective diversification partners.

Correlation
Correlation (1Y)
Calculated over the trailing 1-year period

0.24

Correlation (3Y)
Calculated over the trailing 3-year period

0.30

Correlation (5Y)
Calculated over the trailing 5-year period

0.37

Correlation (10Y)
Calculated over the trailing 10-year period

0.38

Correlation (All Time)
Calculated using the full available price history since Nov 8, 2012

0.40

The correlation between VDY.TO and XLK shifts across timeframes, from 0.24 (1 year) to 0.40 (all time), reflecting how their relationship changes across market environments.

VDY.TO vs. XLK - Sectors Allocation Comparison

Sectors
VDY.TO
XLK

Financial Services

56.0%

-

Energy

30.8%
0.2%

Utilities

4.1%

-

Consumer Cyclical

3.0%

-

Communication Services

2.8%

-

Basic Materials

2.2%

-

Consumer Defensive

0.4%

-

Technology

0.4%
99.7%

Industrials

0.2%
0.1%

Healthcare

0.1%

-

Real Estate

-

-

Financial Services

VDY.TO
56.0%
XLK

-

Energy

VDY.TO
30.8%
XLK
0.2%

Utilities

VDY.TO
4.1%
XLK

-

Consumer Cyclical

VDY.TO
3.0%
XLK

-

Communication Services

VDY.TO
2.8%
XLK

-

Basic Materials

VDY.TO
2.2%
XLK

-

Consumer Defensive

VDY.TO
0.4%
XLK

-

Technology

VDY.TO
0.4%
XLK
99.7%

Industrials

VDY.TO
0.2%
XLK
0.1%

Healthcare

VDY.TO
0.1%
XLK

-

Real Estate

VDY.TO

-

XLK

-

Compare stocks, funds, or ETFs

Search for stocks, ETFs, and funds for a quick comparison or use the comparison tool for more options.

Vanguard FTSE Canadian High Dividend Yield Index ETF

State Street Technology Select Sector SPDR ETF

Often compared with VDY.TO:
VDY.TO vs. XEI.TOVDY.TO vs. XDIV.TOVDY.TO vs. VCN.TOVDY.TO vs. SCHDVDY.TO vs. XIC.TOVDY.TO vs. VCE.TOVDY.TO vs. ZDV.TO
Often compared with XLK:
XLK vs. QQQXLK vs. VGTXLK vs. SMHXLK vs. SPYXLK vs. FTECXLK vs. XLEXLK vs. IYW

Return for Risk

VDY.TO vs. XLK — Risk / Return Rank

Compare risk-adjusted metric ranks to identify better-performing investments over the past 12 months.
VDY.TO
VDY.TO Risk / Return Rank: 9898
Overall Rank
VDY.TO Sharpe Ratio Rank: 9999
Sharpe Ratio Rank
VDY.TO Sortino Ratio Rank: 9898
Sortino Ratio Rank
VDY.TO Omega Ratio Rank: 9898
Omega Ratio Rank
VDY.TO Calmar Ratio Rank: 9898
Calmar Ratio Rank
VDY.TO Martin Ratio Rank: 9898
Martin Ratio Rank
XLK
XLK Risk / Return Rank: 7676
Overall Rank
XLK Sharpe Ratio Rank: 8585
Sharpe Ratio Rank
XLK Sortino Ratio Rank: 7676
Sortino Ratio Rank
XLK Omega Ratio Rank: 7878
Omega Ratio Rank
XLK Calmar Ratio Rank: 7575
Calmar Ratio Rank
XLK Martin Ratio Rank: 6868
Martin Ratio Rank
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.

VDY.TO vs. XLK - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Vanguard FTSE Canadian High Dividend Yield Index ETF (VDY.TO) 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.

VDY.TOXLKDifference
Sharpe ratioReturn per unit of total volatility
5.98
2.51

+3.47

Sortino ratioReturn per unit of downside risk
8.59
3.10

+5.49

Omega ratioGain probability vs. loss probability

2.21

1.41

+0.80

Calmar ratioReturn relative to maximum drawdown

15.94

3.52

+12.42

Martin ratioReturn relative to average drawdown

64.95

10.37

+54.57

VDY.TO vs. XLK - Sharpe Ratio Comparison

The current VDY.TO Sharpe Ratio is 5.98, which is higher than the XLK Sharpe Ratio of 2.51. The chart below compares the historical Sharpe Ratios of VDY.TO 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.

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Drawdowns

VDY.TO vs. XLK - Drawdown Comparison

The maximum VDY.TO drawdown since its inception was -39.21%, roughly equal to the maximum XLK drawdown of -38.68%. Use the drawdown chart below to compare losses from any high point for VDY.TO and XLK.

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Drawdown Indicators

VDY.TOXLKDifference

Max Drawdown

Largest peak-to-trough decline

-39.21%

-38.68%

-0.53%

Max Drawdown (1Y)

Largest decline over 1 year

-3.12%

-16.16%

+13.04%

Max Drawdown (3Y)

Largest decline over 3 years

-10.38%

-26.35%

+15.97%

Max Drawdown (5Y)

Largest decline over 5 years

-16.17%

-29.64%

+13.47%

Max Drawdown (10Y)

Largest decline over 10 years

-39.21%

-29.64%

-9.57%

Current Drawdown

Current decline from peak

0.00%

-5.87%

+5.87%

Average Drawdown

Average peak-to-trough decline

-4.47%

-7.56%

+3.09%

Ulcer Index

Depth and duration of drawdowns from previous peaks

0.76%

5.48%

-4.72%

Volatility

VDY.TO vs. XLK - Volatility Comparison

The current volatility for Vanguard FTSE Canadian High Dividend Yield Index ETF (VDY.TO) is 3.27%, while State Street Technology Select Sector SPDR ETF (XLK) has a volatility of 10.83%. This indicates that VDY.TO 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.

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Volatility by Period

VDY.TOXLKDifference

Volatility (1M)

Calculated over the trailing 1-month period

3.27%

10.83%

-7.56%

Volatility (6M)

Calculated over the trailing 6-month period

6.96%

19.12%

-12.16%

Volatility (1Y)

Calculated over the trailing 1-year period

8.32%

22.68%

-14.36%

Volatility (5Y)

Calculated over the trailing 5-year period, annualized

11.58%

25.91%

-14.33%

Volatility (10Y)

Calculated over the trailing 10-year period, annualized

15.95%

25.57%

-9.62%

VDY.TO vs. XLK - Expense Ratio Comparison

VDY.TO has a 0.22% expense ratio, which is higher than XLK's 0.08% expense ratio. However, both funds are considered low-cost compared to the broader market, where average expense ratios usually range from 0.3% to 0.9%.

Dividends

VDY.TO vs. XLK - Dividend Comparison

VDY.TO's dividend yield for the trailing twelve months is around 2.83%, more than XLK's 0.41% yield.

PositionTTM20252024202320222021202020192018201720162015
VDY.TO
Vanguard FTSE Canadian High Dividend Yield Index ETF		2.83%3.59%4.37%4.64%4.42%3.46%4.59%4.25%4.44%3.42%3.25%4.11%
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

VDY.TO and XLK have a correlation of 0.24, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

On fees, XLK is cheaper at 0.08% per year. The better choice depends on whether you care most about return, fees, risk, or income.

XLK is cheaper with a 0.08% expense ratio, compared with 0.22% for VDY.TO.

VDY.TO is categorized as Dividend, while XLK is Technology Equities. VDY.TO tracks FTSE Canada High Dividend Yield 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: 0.22% for VDY.TO and 0.08% for XLK.

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