VTI vs. XLK

Last updated Jun 9, 2026

VTI (Vanguard Total Stock Market ETF) and XLK (State Street Technology Select Sector SPDR ETF) are both exchange-traded funds - VTI is a Large Cap Blend Equities fund tracking the CRSP US Total Market 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, VTI returned 14.84%/yr vs 25.04%/yr for XLK. Their correlation of 0.87 suggests significant overlap in exposure. VTI charges 0.03%/yr vs 0.08%/yr for XLK.

Performance

VTI vs. XLK - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in Vanguard Total Stock Market ETF (VTI) 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, VTI achieves a 9.05% return, which is significantly lower than XLK's 28.09% return. Over the past 10 years, VTI has underperformed XLK with an annualized return of 14.84%, while XLK has yielded a comparatively higher 25.04% annualized return.

VTI

• 1D: 0.30%
• 1M: 0.44%
• YTD: 9.05%
• 6M: 8.94%
• 1Y: 24.96%
• 3Y*: 21.05%
• 5Y*: 12.25%
• 10Y*: 14.84%

XLK

• 1D: 2.15%
• 1M: 4.93%
• YTD: 28.09%
• 6M: 25.10%
• 1Y: 55.42%
• 3Y*: 31.33%
• 5Y*: 22.26%
• 10Y*: 25.04%

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

VTI vs. XLK - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
VTI Vanguard Total Stock Market ETF	9.05%	17.10%	23.81%	26.05%	-19.52%	25.68%	21.08%	30.67%	-5.23%	21.21%
XLK State Street Technology Select Sector SPDR ETF	28.09%	24.61%	21.63%	56.02%	-27.73%	34.74%	43.62%	49.86%	-1.68%	34.26%

Correlation

The correlation between VTI and XLK is 0.84, indicating a strong positive relationship between their price movements. Combining them offers limited diversification - they tend to fall together during downturns.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	0.84
Correlation (3Y) Calculated over the trailing 3-year period	0.86
Correlation (5Y) Calculated over the trailing 5-year period	0.89
Correlation (10Y) Calculated over the trailing 10-year period	0.88
Correlation (All Time) Calculated using the full available price history since Jun 1, 2001	0.87

The correlation between VTI and XLK has been stable across timeframes, ranging from 0.84 to 0.89 - a consistent structural relationship.

VTI vs. XLK - Sectors Allocation Comparison

Sectors	VTI	XLK
Technology	33.5%	99.7%
Financial Services	12.0%	-
Communication Services	10.3%	-
Consumer Cyclical	10.0%	-
Industrials	9.8%	0.1%
Healthcare	9.2%	-
Consumer Defensive	4.7%	-
Energy	3.7%	0.2%
Real Estate	2.4%	-
Utilities	2.3%	-
Basic Materials	2.0%	-

Return for Risk

VTI vs. XLK — Risk / Return Rank

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

VTI

VTI Risk / Return Rank: 68
VTI Sharpe Ratio Rank: 68
VTI Sortino Ratio Rank: 66
VTI Omega Ratio Rank: 68
VTI Calmar Ratio Rank: 62
VTI Martin Ratio Rank: 75

XLK

XLK Risk / Return Rank: 77
XLK Sharpe Ratio Rank: 86
XLK Sortino Ratio Rank: 76
XLK Omega Ratio Rank: 79
XLK Calmar Ratio Rank: 76
XLK Martin Ratio Rank: 69

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.

VTI vs. XLK - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Vanguard Total Stock Market ETF (VTI) 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.

	VTI	XLK	Difference
Sharpe ratio: Return per unit of total volatility	2.02	2.53	-0.51
Sortino ratio: Return per unit of downside risk	2.73	3.06	-0.33
Omega ratio: Gain probability vs. loss probability	1.36	1.42	-0.05
Calmar ratio: Return relative to maximum drawdown	2.81	3.50	-0.69
Martin ratio: Return relative to average drawdown	12.85	11.58	+1.27
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month.

VTI vs. XLK - Sharpe Ratio Comparison

The current VTI Sharpe Ratio is 2.02, which is comparable to the XLK Sharpe Ratio of 2.53. The chart below compares the historical Sharpe Ratios of VTI 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.

Sharpe Ratios by Period

	VTI	XLK	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	2.02	2.53	-0.51
Sharpe Ratio (5Y) Calculated over the trailing 5-year period	0.71	0.89	-0.19
Sharpe Ratio (10Y) Calculated over the trailing 10-year period	0.81	1.02	-0.21
Sharpe Ratio (All Time) Calculated using the full available price history	0.50	0.41	+0.10

Drawdowns

VTI vs. XLK - Drawdown Comparison

The maximum VTI drawdown since its inception was -55.45%, smaller than the maximum XLK drawdown of -82.05%. Use the drawdown chart below to compare losses from any high point for VTI and XLK.

Drawdown Indicators

	VTI	XLK	Difference
Max Drawdown Largest peak-to-trough decline	-55.45%	-82.05%	+26.60%
Max Drawdown (1Y) Largest decline over 1 year	-8.92%	-15.92%	+7.00%
Max Drawdown (3Y) Largest decline over 3 years	-19.30%	-25.66%	+6.36%
Max Drawdown (5Y) Largest decline over 5 years	-25.36%	-33.56%	+8.20%
Max Drawdown (10Y) Largest decline over 10 years	-35.00%	-33.56%	-1.44%
Current Drawdown Current decline from peak	-2.64%	-7.08%	+4.44%
Average Drawdown Average peak-to-trough decline	-8.02%	-34.95%	+26.93%
Ulcer Index Depth and duration of drawdowns from previous peaks	1.95%	4.80%	-2.85%

Volatility

VTI vs. XLK - Volatility Comparison

The current volatility for Vanguard Total Stock Market ETF (VTI) is 3.88%, while State Street Technology Select Sector SPDR ETF (XLK) has a volatility of 10.42%. This indicates that VTI 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

	VTI	XLK	Difference
Volatility (1M) Calculated over the trailing 1-month period	3.88%	10.42%	-6.54%
Volatility (6M) Calculated over the trailing 6-month period	9.55%	18.32%	-8.77%
Volatility (1Y) Calculated over the trailing 1-year period	12.44%	22.08%	-9.64%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	17.44%	25.10%	-7.66%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	18.33%	24.60%	-6.27%

VTI vs. XLK - Expense Ratio Comparison

VTI has a 0.03% 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

VTI vs. XLK - Dividend Comparison

VTI's dividend yield for the trailing twelve months is around 1.03%, more than XLK's 0.41% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
VTI Vanguard Total Stock Market ETF	1.03%	1.12%	1.27%	1.44%	1.66%	1.21%	1.42%	1.78%	2.04%	1.71%	1.92%	1.98%
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 VTI and XLK in my portfolio?

VTI and XLK have a correlation of 0.84, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, VTI or XLK?

XLK has higher volatility (10.42%) compared to VTI (3.88%). In terms of maximum drawdown, VTI dropped -55.45% vs XLK's -82.05%.

Which ETF is better, VTI or XLK?

On 10-year performance, XLK leads with 25.04% vs 14.84% for VTI. On fees, VTI is cheaper at 0.03% per year. On volatility, VTI has been the lower-risk option at 3.88%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, VTI or XLK?

Over the 10-year period, XLK has performed better with a 25.04% return vs 14.84%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, VTI or XLK?

VTI is cheaper with a 0.03% expense ratio, compared with 0.08% for XLK.

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

VTI has the higher dividend yield at 1.03%, compared with 0.41% for XLK.

What is the main difference between VTI and XLK?

VTI is categorized as Large Cap Blend Equities, while XLK is Technology Equities. VTI tracks CRSP US Total Market 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: 0.03% for VTI and 0.08% for XLK.

Which has better risk-adjusted returns?

XLK currently has the higher Sharpe Ratio (2.53 vs 2.02), 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.