XLK vs. VOO

Last updated Jun 21, 2026

XLK (State Street Technology Select Sector SPDR ETF) and VOO (Vanguard S&P 500 ETF) are both exchange-traded funds - XLK is a Technology Equities fund tracking the S&P Technology Select Sector Daily Capped 35/20 Index, while VOO is a S&P 500 fund tracking the S&P 500 Index. Both are passively managed. Over the past 10 years, XLK returned 25.67%/yr vs 15.55%/yr for VOO. Their correlation of 0.89 suggests significant overlap in exposure. XLK charges 0.08%/yr vs 0.03%/yr for VOO.

Performance

XLK vs. VOO - 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 S&P 500 ETF (VOO). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, XLK achieves a 33.14% return, which is significantly higher than VOO's 10.07% return. Over the past 10 years, XLK has outperformed VOO with an annualized return of 25.67%, while VOO has yielded a comparatively lower 15.55% annualized return.

XLK

• 1D: 3.04%
• 1M: 7.19%
• YTD: 33.14%
• 6M: 32.76%
• 1Y: 60.08%
• 3Y*: 31.17%
• 5Y*: 22.86%
• 10Y*: 25.67%

VOO

• 1D: 0.98%
• 1M: 0.77%
• YTD: 10.07%
• 6M: 10.31%
• 1Y: 27.14%
• 3Y*: 20.91%
• 5Y*: 14.06%
• 10Y*: 15.55%

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

XLK vs. VOO - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
XLK State Street Technology Select Sector SPDR ETF	33.14%	24.61%	21.63%	56.02%	-27.73%	34.74%	43.62%	49.86%	-1.68%	34.26%
VOO Vanguard S&P 500 ETF	10.07%	17.82%	24.98%	26.32%	-18.17%	28.79%	18.32%	31.37%	-4.50%	21.77%

Correlation

The correlation between XLK and VOO is 0.86, 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	0.86
Correlation (3Y) Calculated over the trailing 3-year period	0.88
Correlation (5Y) Calculated over the trailing 5-year period	0.91
Correlation (10Y) Calculated over the trailing 10-year period	0.89
Correlation (All Time) Calculated using the full available price history since Sep 9, 2010	0.89

The correlation between XLK and VOO has been stable across timeframes, ranging from 0.86 to 0.91 - a consistent structural relationship.

XLK vs. VOO - Sectors Allocation Comparison

Sectors	XLK	VOO
Technology	99.7%	39.1%
Energy	0.2%	3.2%
Industrials	0.1%	7.6%
Basic Materials	-	1.7%
Communication Services	-	10.5%
Consumer Cyclical	-	9.8%
Consumer Defensive	-	4.5%
Financial Services	-	10.9%
Healthcare	-	8.3%
Real Estate	-	1.8%
Utilities	-	2.5%

Return for Risk

XLK vs. VOO — 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: 85
XLK Sortino Ratio Rank: 75
XLK Omega Ratio Rank: 77
XLK Calmar Ratio Rank: 77
XLK Martin Ratio Rank: 68

VOO

VOO Risk / Return Rank: 70
VOO Sharpe Ratio Rank: 71
VOO Sortino Ratio Rank: 68
VOO Omega Ratio Rank: 71
VOO Calmar Ratio Rank: 64
VOO Martin Ratio Rank: 76

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. VOO - 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 S&P 500 ETF (VOO). 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	VOO	Difference
Sharpe ratio: Return per unit of total volatility	2.59	2.18	+0.41
Sortino ratio: Return per unit of downside risk	3.14	2.93	+0.21
Omega ratio: Gain probability vs. loss probability	1.42	1.39	+0.03
Calmar ratio: Return relative to maximum drawdown	3.75	3.02	+0.72
Martin ratio: Return relative to average drawdown	12.01	13.61	-1.60

XLK vs. VOO - Sharpe Ratio Comparison

The current XLK Sharpe Ratio is 2.59, which is comparable to the VOO Sharpe Ratio of 2.18. The chart below compares the historical Sharpe Ratios of XLK and VOO, 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. VOO - Drawdown Comparison

The maximum XLK drawdown since its inception was -82.05%, which is greater than VOO's maximum drawdown of -33.99%. Use the drawdown chart below to compare losses from any high point for XLK and VOO.

Drawdown Indicators

	XLK	VOO	Difference
Max Drawdown Largest peak-to-trough decline	-82.05%	-33.99%	-48.06%
Max Drawdown (1Y) Largest decline over 1 year	-15.92%	-8.90%	-7.02%
Max Drawdown (3Y) Largest decline over 3 years	-25.66%	-18.69%	-6.97%
Max Drawdown (5Y) Largest decline over 5 years	-33.56%	-24.52%	-9.04%
Max Drawdown (10Y) Largest decline over 10 years	-33.56%	-33.99%	+0.43%
Current Drawdown Current decline from peak	-3.42%	-1.45%	-1.97%
Average Drawdown Average peak-to-trough decline	-34.91%	-3.68%	-31.23%
Ulcer Index Depth and duration of drawdowns from previous peaks	4.96%	1.97%	+2.99%

Volatility

XLK vs. VOO - Volatility Comparison

State Street Technology Select Sector SPDR ETF (XLK) has a higher volatility of 11.79% compared to Vanguard S&P 500 ETF (VOO) at 4.69%. This indicates that XLK's price experiences larger fluctuations and is considered to be riskier than VOO based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	XLK	VOO	Difference
Volatility (1M) Calculated over the trailing 1-month period	11.79%	4.69%	+7.10%
Volatility (6M) Calculated over the trailing 6-month period	19.39%	9.79%	+9.60%
Volatility (1Y) Calculated over the trailing 1-year period	23.08%	12.37%	+10.71%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	25.30%	16.90%	+8.40%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	24.70%	18.05%	+6.65%

XLK vs. VOO - Expense Ratio Comparison

XLK has a 0.08% expense ratio, which is higher than VOO's 0.03% 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%.

Dividends

XLK vs. VOO - Dividend Comparison

XLK's dividend yield for the trailing twelve months is around 0.40%, less than VOO's 1.04% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
VOO Vanguard S&P 500 ETF	1.04%	1.13%	1.24%	1.46%	1.69%	1.25%	1.54%	1.88%	2.06%	1.78%	2.02%	2.10%
XLK State Street Technology Select Sector SPDR ETF	0.40%	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 VOO in my portfolio?

XLK and VOO have a correlation of 0.86, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, XLK or VOO?

XLK has higher volatility (11.79%) compared to VOO (4.69%). In terms of maximum drawdown, XLK dropped -82.05% vs VOO's -33.99%.

Which ETF is better, XLK or VOO?

On 10-year performance, XLK leads with 25.67% vs 15.55% for VOO. On fees, VOO is cheaper at 0.03% per year. On volatility, VOO has been the lower-risk option at 4.69%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, XLK or VOO?

Over the 10-year period, XLK has performed better with a 25.67% return vs 15.55%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, XLK or VOO?

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

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

VOO has the higher dividend yield at 1.04%, compared with 0.40% for XLK.

What is the main difference between XLK and VOO?

XLK is categorized as Technology Equities, while VOO is S&P 500. XLK tracks S&P Technology Select Sector Daily Capped 35/20 Index, while VOO tracks S&P 500 Index. They also come from different issuers: State Street and Vanguard. Their fees differ too: 0.08% for XLK and 0.03% for VOO.

Which has better risk-adjusted returns?

XLK currently has the higher Sharpe Ratio (2.59 vs 2.18), 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.