VGT vs. XLK
Compare and contrast key facts about Vanguard Information Technology ETF (VGT) and Technology Select Sector SPDR Fund (XLK).
VGT and XLK are both exchange-traded funds (ETFs), meaning they are traded on stock exchanges and can be bought and sold throughout the day. VGT is a passively managed fund by Vanguard that tracks the performance of the MSCI US Investable Market Information Technology 25/50 Index. It was launched on Jan 26, 2004. XLK is a passively managed fund by State Street that tracks the performance of the Technology Select Sector Index. It was launched on Dec 16, 1998. Both VGT and XLK are passive ETFs, meaning that they are not actively managed but aim to replicate the performance of the underlying index as closely as possible.
Scroll down to visually compare performance, riskiness, drawdowns, and other indicators and decide which better suits your portfolio: VGT or XLK.
Performance
VGT vs. XLK - Performance Comparison
Returns By Period
In the year-to-date period, VGT achieves a 27.28% return, which is significantly higher than XLK's 20.71% return. Both investments have delivered pretty close results over the past 10 years, with VGT having a 20.69% annualized return and XLK not far behind at 20.26%.
VGT
27.28%
0.97%
13.82%
34.56%
22.52%
20.69%
XLK
20.71%
-0.37%
7.81%
26.58%
22.92%
20.26%
Key characteristics
| VGT | XLK | |
|---|---|---|
| Sharpe Ratio | 1.59 | 1.18 |
| Sortino Ratio | 2.11 | 1.64 |
| Omega Ratio | 1.29 | 1.22 |
| Calmar Ratio | 2.20 | 1.51 |
| Martin Ratio | 7.89 | 5.19 |
| Ulcer Index | 4.24% | 4.92% |
| Daily Std Dev | 20.98% | 21.69% |
| Max Drawdown | -54.63% | -82.05% |
| Current Drawdown | -2.04% | -2.65% |
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VGT vs. XLK - Expense Ratio Comparison
VGT has a 0.10% expense ratio, which is lower than XLK's 0.13% 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%.
Correlation
The correlation between VGT and XLK is 0.96, which is considered to be high. That indicates a strong positive relationship between their price movements. Having highly-correlated positions in a portfolio may signal a lack of diversification, potentially leading to increased risk during market downturns.
Risk-Adjusted Performance
VGT vs. XLK - Risk-Adjusted Performance Comparison
This table presents a comparison of risk-adjusted performance metrics for Vanguard Information Technology ETF (VGT) and Technology Select Sector SPDR Fund (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.
Dividends
VGT vs. XLK - Dividend Comparison
VGT's dividend yield for the trailing twelve months is around 0.61%, less than XLK's 0.67% yield.
| TTM | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 | 2014 | 2013 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
VGT Vanguard Information Technology ETF | 0.61% | 0.65% | 0.91% | 0.64% | 0.82% | 1.11% | 1.29% | 0.99% | 1.31% | 1.28% | 1.12% | 1.05% |
XLK Technology Select Sector SPDR Fund | 0.67% | 0.76% | 1.04% | 0.65% | 0.92% | 1.16% | 1.60% | 1.37% | 1.74% | 1.79% | 1.75% | 1.70% |
Drawdowns
VGT vs. XLK - Drawdown Comparison
The maximum VGT drawdown since its inception was -54.63%, smaller than the maximum XLK drawdown of -82.05%. Use the drawdown chart below to compare losses from any high point for VGT and XLK. For additional features, visit the drawdowns tool.
Volatility
VGT vs. XLK - Volatility Comparison
Vanguard Information Technology ETF (VGT) and Technology Select Sector SPDR Fund (XLK) have volatilities of 6.62% and 6.36%, respectively, indicating that both stocks experience similar levels of price fluctuations. This suggests that the risk associated with both stocks, as measured by volatility, is nearly the same. The chart below showcases a comparison of their rolling one-month volatility.