VGT vs. XSD

Last updated Jun 9, 2026

VGT (Vanguard Information Technology ETF) and XSD (SPDR S&P Semiconductor ETF) are both exchange-traded funds - VGT is a Technology Equities fund tracking the MSCI USA IMI Information Technology 25/50 Index, while XSD is a Semiconductors fund tracking the S&P Semiconductor Select Industry Index. Both are passively managed. Over the past 10 years, VGT returned 25.14%/yr vs 30.07%/yr for XSD. Their correlation of 0.83 suggests significant overlap in exposure. VGT charges 0.09%/yr vs 0.35%/yr for XSD.

Performance

VGT vs. XSD - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in Vanguard Information Technology ETF (VGT) and SPDR S&P Semiconductor ETF (XSD). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, VGT achieves a 24.57% return, which is significantly lower than XSD's 85.56% return. Over the past 10 years, VGT has underperformed XSD with an annualized return of 25.14%, while XSD has yielded a comparatively higher 30.07% annualized return.

VGT

• 1D: 1.71%
• 1M: 4.28%
• YTD: 24.57%
• 6M: 21.33%
• 1Y: 50.38%
• 3Y*: 31.24%
• 5Y*: 20.82%
• 10Y*: 25.14%

XSD

• 1D: 4.33%
• 1M: 7.63%
• YTD: 85.56%
• 6M: 73.55%
• 1Y: 154.18%
• 3Y*: 41.92%
• 5Y*: 27.66%
• 10Y*: 30.07%

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

VGT vs. XSD - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
VGT Vanguard Information Technology ETF	24.57%	21.77%	29.30%	52.66%	-29.70%	30.45%	46.04%	48.62%	2.46%	37.08%
XSD SPDR S&P Semiconductor ETF	85.56%	29.85%	10.75%	34.87%	-30.92%	42.54%	61.95%	64.66%	-6.35%	25.21%

Correlation

The correlation between VGT and XSD is 0.76, which is moderate. They share some common price drivers but move independently often enough to provide real diversification benefit when combined.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	0.76
Correlation (3Y) Calculated over the trailing 3-year period	0.81
Correlation (5Y) Calculated over the trailing 5-year period	0.84
Correlation (10Y) Calculated over the trailing 10-year period	0.83
Correlation (All Time) Calculated using the full available price history since Feb 6, 2006	0.83

The correlation between VGT and XSD has been stable across timeframes, ranging from 0.76 to 0.84 - a consistent structural relationship.

VGT vs. XSD - Sectors Allocation Comparison

Sectors	VGT	XSD
Technology	98.5%	97.8%
Communication Services	0.5%	-
Financial Services	0.5%	-
Industrials	0.4%	-
Energy	0.3%	2.2%
Consumer Cyclical	0.1%	-
Basic Materials	0.0%	-
Healthcare	0.0%	-
Consumer Defensive	-	-
Real Estate	-	-
Utilities	-	-

Return for Risk

VGT vs. XSD — Risk / Return Rank

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

VGT

VGT Risk / Return Rank: 71
VGT Sharpe Ratio Rank: 81
VGT Sortino Ratio Rank: 71
VGT Omega Ratio Rank: 73
VGT Calmar Ratio Rank: 68
VGT Martin Ratio Rank: 60

XSD

XSD Risk / Return Rank: 94
XSD Sharpe Ratio Rank: 97
XSD Sortino Ratio Rank: 92
XSD Omega Ratio Rank: 92
XSD Calmar Ratio Rank: 96
XSD Martin Ratio Rank: 95

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.

VGT vs. XSD - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Vanguard Information Technology ETF (VGT) and SPDR S&P Semiconductor ETF (XSD). 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.

	VGT	XSD	Difference
Sharpe ratio: Return per unit of total volatility	2.35	4.06	-1.71
Sortino ratio: Return per unit of downside risk	2.89	4.11	-1.21
Omega ratio: Gain probability vs. loss probability	1.39	1.56	-0.17
Calmar ratio: Return relative to maximum drawdown	3.09	8.34	-5.25
Martin ratio: Return relative to average drawdown	9.77	28.58	-18.81
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month.

VGT vs. XSD - Sharpe Ratio Comparison

The current VGT Sharpe Ratio is 2.35, which is lower than the XSD Sharpe Ratio of 4.06. The chart below compares the historical Sharpe Ratios of VGT and XSD, calculated using daily returns over the previous 12 months. A higher Sharpe Ratio indicates better risk-adjusted performance relative to the risk-free rate.

Sharpe Ratios by Period

	VGT	XSD	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	2.35	4.06	-1.71
Sharpe Ratio (5Y) Calculated over the trailing 5-year period	0.83	0.72	+0.11
Sharpe Ratio (10Y) Calculated over the trailing 10-year period	1.02	0.86	+0.16
Sharpe Ratio (All Time) Calculated using the full available price history	0.67	0.42	+0.24

Drawdowns

VGT vs. XSD - Drawdown Comparison

The maximum VGT drawdown since its inception was -54.63%, smaller than the maximum XSD drawdown of -64.56%. Use the drawdown chart below to compare losses from any high point for VGT and XSD.

Drawdown Indicators

	VGT	XSD	Difference
Max Drawdown Largest peak-to-trough decline	-54.63%	-64.56%	+9.93%
Max Drawdown (1Y) Largest decline over 1 year	-16.40%	-18.61%	+2.21%
Max Drawdown (3Y) Largest decline over 3 years	-27.23%	-41.25%	+14.02%
Max Drawdown (5Y) Largest decline over 5 years	-35.07%	-42.27%	+7.20%
Max Drawdown (10Y) Largest decline over 10 years	-35.07%	-42.27%	+7.20%
Current Drawdown Current decline from peak	-6.77%	-8.20%	+1.43%
Average Drawdown Average peak-to-trough decline	-7.95%	-13.73%	+5.78%
Ulcer Index Depth and duration of drawdowns from previous peaks	5.17%	5.42%	-0.25%

Volatility

VGT vs. XSD - Volatility Comparison

The current volatility for Vanguard Information Technology ETF (VGT) is 9.39%, while SPDR S&P Semiconductor ETF (XSD) has a volatility of 19.79%. This indicates that VGT experiences smaller price fluctuations and is considered to be less risky than XSD based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	VGT	XSD	Difference
Volatility (1M) Calculated over the trailing 1-month period	9.39%	19.79%	-10.40%
Volatility (6M) Calculated over the trailing 6-month period	17.44%	30.60%	-13.16%
Volatility (1Y) Calculated over the trailing 1-year period	21.58%	38.31%	-16.73%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	25.33%	38.62%	-13.29%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	24.69%	35.17%	-10.48%

VGT vs. XSD - Expense Ratio Comparison

VGT has a 0.09% expense ratio, which is lower than XSD's 0.35% expense ratio.

Dividends

VGT vs. XSD - Dividend Comparison

VGT's dividend yield for the trailing twelve months is around 0.33%, more than XSD's 0.14% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
VGT Vanguard Information Technology ETF	0.33%	0.40%	0.60%	0.65%	0.91%	0.64%	0.82%	1.11%	1.29%	0.99%	1.31%	1.28%
XSD SPDR S&P Semiconductor ETF	0.14%	0.26%	0.20%	0.31%	0.44%	0.10%	0.26%	0.51%	1.16%	0.59%	0.64%	0.58%

Frequently Asked Questions

Can I hold both VGT and XSD in my portfolio?

VGT and XSD have a correlation of 0.76, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, VGT or XSD?

XSD has higher volatility (19.79%) compared to VGT (9.39%). In terms of maximum drawdown, VGT dropped -54.63% vs XSD's -64.56%.

Which ETF is better, VGT or XSD?

On 10-year performance, XSD leads with 30.07% vs 25.14% for VGT. On fees, VGT is cheaper at 0.09% per year. On volatility, VGT has been the lower-risk option at 9.39%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, VGT or XSD?

Over the 10-year period, XSD has performed better with a 30.07% return vs 25.14%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, VGT or XSD?

VGT is cheaper with a 0.09% expense ratio, compared with 0.35% for XSD.

Which ETF pays a higher dividend yield, VGT or XSD?

VGT has the higher dividend yield at 0.33%, compared with 0.14% for XSD.

What is the main difference between VGT and XSD?

VGT is categorized as Technology Equities, while XSD is Semiconductors. VGT tracks MSCI USA IMI Information Technology 25/50 Index, while XSD tracks S&P Semiconductor Select Industry Index. They also come from different issuers: Vanguard and State Street. Their fees differ too: 0.09% for VGT and 0.35% for XSD.

Which has better risk-adjusted returns?

XSD currently has the higher Sharpe Ratio (4.06 vs 2.35), 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.