XLK vs. VGT
Compare and contrast key facts about Technology Select Sector SPDR Fund (XLK) and Vanguard Information Technology ETF (VGT).
XLK and VGT are both exchange-traded funds (ETFs), meaning they are traded on stock exchanges and can be bought and sold throughout the day. 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. 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. Both XLK and VGT 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: XLK or VGT.
Key characteristics
| XLK | VGT | |
|---|---|---|
| YTD Return | 2.83% | 2.61% |
| 1Y Return | 36.34% | 33.75% |
| 3Y Return (Ann) | 12.24% | 9.36% |
| 5Y Return (Ann) | 21.50% | 19.53% |
| 10Y Return (Ann) | 20.16% | 19.98% |
| Sharpe Ratio | 2.15 | 1.96 |
| Daily Std Dev | 17.83% | 18.17% |
| Max Drawdown | -82.05% | -54.63% |
| Current Drawdown | -6.20% | -6.33% |
Correlation
The correlation between XLK and VGT 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.
Performance
XLK vs. VGT - Performance Comparison
In the year-to-date period, XLK achieves a 2.83% return, which is significantly higher than VGT's 2.61% return. Both investments have delivered pretty close results over the past 10 years, with XLK having a 20.16% annualized return and VGT not far behind at 19.98%. The chart below displays the growth of a $10,000 investment in both assets, with all prices adjusted for splits and dividends.
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XLK vs. VGT - Expense Ratio Comparison
XLK has a 0.13% expense ratio, which is higher than VGT's 0.10% 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%.
Risk-Adjusted Performance
XLK vs. VGT - Risk-Adjusted Performance Comparison
This table presents a comparison of risk-adjusted performance metrics for Technology Select Sector SPDR Fund (XLK) and Vanguard Information Technology ETF (VGT). 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
XLK vs. VGT - Dividend Comparison
XLK's dividend yield for the trailing twelve months is around 0.75%, more than VGT's 0.73% yield.
| TTM | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 | 2014 | 2013 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
XLK Technology Select Sector SPDR Fund | 0.75% | 0.76% | 1.04% | 0.65% | 0.92% | 1.16% | 1.60% | 1.37% | 1.74% | 1.79% | 1.75% | 1.70% |
VGT Vanguard Information Technology ETF | 0.73% | 0.65% | 0.91% | 0.64% | 0.82% | 1.11% | 1.29% | 0.99% | 1.31% | 1.28% | 1.12% | 1.05% |
Drawdowns
XLK vs. VGT - Drawdown Comparison
The maximum XLK drawdown since its inception was -82.05%, which is greater than VGT's maximum drawdown of -54.63%. Use the drawdown chart below to compare losses from any high point for XLK and VGT. For additional features, visit the drawdowns tool.
Volatility
XLK vs. VGT - Volatility Comparison
The current volatility for Technology Select Sector SPDR Fund (XLK) is 5.33%, while Vanguard Information Technology ETF (VGT) has a volatility of 5.65%. This indicates that XLK experiences smaller price fluctuations and is considered to be less risky than VGT based on this measure. The chart below showcases a comparison of their rolling one-month volatility.