XLK vs. VGT

Last updated Jun 23, 2026

XLK (State Street Technology Select Sector SPDR ETF) and VGT (Vanguard Information Technology ETF) are both Technology Equities funds - XLK tracks the S&P Technology Select Sector Daily Capped 35/20 Index while VGT tracks the MSCI USA IMI Information Technology 25/50 Index. Both are passively managed. Over the past 10 years, XLK returned 26.01%/yr vs 25.96%/yr for VGT. With a 0.96 correlation, they move nearly in lockstep. XLK charges 0.08%/yr vs 0.09%/yr for VGT.

Performance

XLK vs. VGT - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in State Street Technology Select Sector SPDR ETF (XLK) and Vanguard Information Technology ETF (VGT). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, XLK achieves a 33.79% return, which is significantly higher than VGT's 28.03% return. Both investments have delivered pretty close results over the past 10 years, with XLK having a 26.01% annualized return and VGT not far behind at 25.96%.

XLK

• 1D: 0.49%
• 1M: 6.65%
• YTD: 33.79%
• 6M: 32.69%
• 1Y: 60.87%
• 3Y*: 32.46%
• 5Y*: 22.53%
• 10Y*: 26.01%

VGT

• 1D: 0.39%
• 1M: 4.11%
• YTD: 28.03%
• 6M: 26.85%
• 1Y: 54.06%
• 3Y*: 31.77%
• 5Y*: 20.58%
• 10Y*: 25.96%

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

XLK vs. VGT - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
XLK State Street Technology Select Sector SPDR ETF	33.79%	24.61%	21.63%	56.02%	-27.73%	34.74%	43.62%	49.86%	-1.68%	34.26%
VGT Vanguard Information Technology ETF	28.03%	21.77%	29.30%	52.66%	-29.70%	30.45%	46.04%	48.62%	2.46%	37.08%

Correlation

The correlation between XLK and VGT is 0.99 - these two move nearly in lockstep. At this level, holding both provides almost no diversification benefit. If you already own one, adding the other does little to reduce portfolio risk.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	0.99
Correlation (3Y) Calculated over the trailing 3-year period	0.99
Correlation (5Y) Calculated over the trailing 5-year period	0.99
Correlation (10Y) Calculated over the trailing 10-year period	0.99
Correlation (All Time) Calculated using the full available price history since Jan 30, 2004	0.96

The correlation between XLK and VGT has been stable across timeframes, ranging from 0.96 to 0.99 - a consistent structural relationship.

XLK vs. VGT - Sectors Allocation Comparison

Sectors	XLK	VGT
Technology	99.7%	98.5%
Energy	0.2%	0.3%
Industrials	0.1%	0.4%
Basic Materials	-	0.0%
Communication Services	-	0.5%
Consumer Cyclical	-	0.1%
Consumer Defensive	-	-
Financial Services	-	0.5%
Healthcare	-	0.0%
Real Estate	-	-
Utilities	-	-

Return for Risk

XLK vs. VGT — Risk / Return Rank

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

XLK

XLK Risk / Return Rank: 77
XLK Sharpe Ratio Rank: 86
XLK Sortino Ratio Rank: 75
XLK Omega Ratio Rank: 77
XLK Calmar Ratio Rank: 78
XLK Martin Ratio Rank: 69

VGT

VGT Risk / Return Rank: 69
VGT Sharpe Ratio Rank: 79
VGT Sortino Ratio Rank: 69
VGT Omega Ratio Rank: 70
VGT Calmar Ratio Rank: 68
VGT Martin Ratio Rank: 59

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.

XLK vs. VGT - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for State Street Technology Select Sector SPDR ETF (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.

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.

	XLK	VGT	Difference
Sharpe ratio: Return per unit of total volatility	2.65	2.43	+0.23
Sortino ratio: Return per unit of downside risk	3.20	2.99	+0.21
Omega ratio: Gain probability vs. loss probability	1.43	1.40	+0.04
Calmar ratio: Return relative to maximum drawdown	3.84	3.31	+0.53
Martin ratio: Return relative to average drawdown	12.30	10.16	+2.15

XLK vs. VGT - Sharpe Ratio Comparison

The current XLK Sharpe Ratio is 2.65, which is comparable to the VGT Sharpe Ratio of 2.43. The chart below compares the historical Sharpe Ratios of XLK and VGT, calculated using daily returns over the previous 12 months. A higher Sharpe Ratio indicates better risk-adjusted performance relative to the risk-free rate.

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.

Drawdown Indicators

	XLK	VGT	Difference
Max Drawdown Largest peak-to-trough decline	-82.05%	-54.63%	-27.42%
Max Drawdown (1Y) Largest decline over 1 year	-15.92%	-16.40%	+0.48%
Max Drawdown (3Y) Largest decline over 3 years	-25.66%	-27.23%	+1.57%
Max Drawdown (5Y) Largest decline over 5 years	-33.56%	-35.07%	+1.51%
Max Drawdown (10Y) Largest decline over 10 years	-33.56%	-35.07%	+1.51%
Current Drawdown Current decline from peak	-2.94%	-4.18%	+1.24%
Average Drawdown Average peak-to-trough decline	-34.90%	-7.95%	-26.95%
Ulcer Index Depth and duration of drawdowns from previous peaks	4.96%	5.34%	-0.38%

Volatility

XLK vs. VGT - Volatility Comparison

State Street Technology Select Sector SPDR ETF (XLK) has a higher volatility of 11.64% compared to Vanguard Information Technology ETF (VGT) at 10.66%. This indicates that XLK's price experiences larger fluctuations and is considered to be riskier than VGT based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	XLK	VGT	Difference
Volatility (1M) Calculated over the trailing 1-month period	11.64%	10.66%	+0.98%
Volatility (6M) Calculated over the trailing 6-month period	19.23%	18.19%	+1.04%
Volatility (1Y) Calculated over the trailing 1-year period	23.12%	22.44%	+0.68%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	25.30%	25.50%	-0.20%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	24.71%	24.78%	-0.07%

XLK vs. VGT - Expense Ratio Comparison

XLK has a 0.08% expense ratio, which is lower than VGT's 0.09% 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

XLK vs. VGT - Dividend Comparison

XLK's dividend yield for the trailing twelve months is around 0.52%, more than VGT's 0.32% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
VGT Vanguard Information Technology ETF	0.32%	0.40%	0.60%	0.65%	0.91%	0.64%	0.82%	1.11%	1.29%	0.99%	1.31%	1.28%
XLK State Street Technology Select Sector SPDR ETF	0.52%	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 XLK and VGT in my portfolio?

With a correlation of 0.99, XLK and VGT move almost identically. Holding both adds very little diversification - you're essentially doubling your position in the same market segment. Choosing one is usually more capital-efficient.

Which is riskier, XLK or VGT?

XLK has higher volatility (11.64%) compared to VGT (10.66%). In terms of maximum drawdown, XLK dropped -82.05% vs VGT's -54.63%.

Which ETF is better, XLK or VGT?

On 10-year performance, XLK leads with 26.01% vs 25.96% for VGT. On fees, XLK is cheaper at 0.08% per year. On volatility, VGT has been the lower-risk option at 10.66%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, XLK or VGT?

Over the 10-year period, XLK has performed better with a 26.01% return vs 25.96%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, XLK or VGT?

XLK is cheaper with a 0.08% expense ratio, compared with 0.09% for VGT.

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

XLK has the higher dividend yield at 0.52%, compared with 0.32% for VGT.

What is the main difference between XLK and VGT?

XLK tracks S&P Technology Select Sector Daily Capped 35/20 Index, while VGT tracks MSCI USA IMI Information Technology 25/50 Index. They also come from different issuers: State Street and Vanguard. Their fees differ too: 0.08% for XLK and 0.09% for VGT.

Which has better risk-adjusted returns?

XLK currently has the higher Sharpe Ratio (2.65 vs 2.43), 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.