XLK vs. VXUS

Last updated Jun 9, 2026

XLK (State Street Technology Select Sector SPDR ETF) and VXUS (Vanguard Total International Stock 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 VXUS is a Global Equities fund tracking the FTSE Global All Cap ex US Index. Both are passively managed. Over the past 10 years, XLK returned 25.04%/yr vs 9.68%/yr for VXUS. A 0.70 correlation means they provide meaningful diversification when combined. XLK charges 0.08%/yr vs 0.05%/yr for VXUS.

Performance

XLK vs. VXUS - 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 Total International Stock ETF (VXUS). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, XLK achieves a 28.09% return, which is significantly higher than VXUS's 11.12% return. Over the past 10 years, XLK has outperformed VXUS with an annualized return of 25.04%, while VXUS has yielded a comparatively lower 9.68% annualized return.

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%

VXUS

• 1D: 0.86%
• 1M: -1.98%
• YTD: 11.12%
• 6M: 13.49%
• 1Y: 27.05%
• 3Y*: 17.97%
• 5Y*: 7.95%
• 10Y*: 9.68%

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

XLK vs. VXUS - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
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%
VXUS Vanguard Total International Stock ETF	11.12%	32.35%	5.08%	15.86%	-16.08%	8.98%	10.66%	21.75%	-14.43%	27.46%

Correlation

The correlation between XLK and VXUS is 0.67, 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	0.67
Correlation (3Y) Calculated over the trailing 3-year period	0.62
Correlation (5Y) Calculated over the trailing 5-year period	0.67
Correlation (10Y) Calculated over the trailing 10-year period	0.69
Correlation (All Time) Calculated using the full available price history since Jan 31, 2011	0.70

The correlation between XLK and VXUS has been stable across timeframes, ranging from 0.62 to 0.70 - a consistent structural relationship.

XLK vs. VXUS - Sectors Allocation Comparison

Sectors	XLK	VXUS
Technology	99.7%	18.1%
Energy	0.2%	5.2%
Industrials	0.1%	16.1%
Basic Materials	-	7.6%
Communication Services	-	4.4%
Consumer Cyclical	-	8.4%
Consumer Defensive	-	5.0%
Financial Services	-	22.3%
Healthcare	-	7.1%
Real Estate	-	2.6%
Utilities	-	3.2%

Return for Risk

XLK vs. VXUS — 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: 76
XLK Omega Ratio Rank: 79
XLK Calmar Ratio Rank: 76
XLK Martin Ratio Rank: 69

VXUS

VXUS Risk / Return Rank: 56
VXUS Sharpe Ratio Rank: 57
VXUS Sortino Ratio Rank: 54
VXUS Omega Ratio Rank: 57
VXUS Calmar Ratio Rank: 54
VXUS Martin Ratio Rank: 58

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. VXUS - 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 Total International Stock ETF (VXUS). 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.

	XLK	VXUS	Difference
Sharpe ratio: Return per unit of total volatility	2.53	1.73	+0.80
Sortino ratio: Return per unit of downside risk	3.06	2.36	+0.69
Omega ratio: Gain probability vs. loss probability	1.42	1.32	+0.10
Calmar ratio: Return relative to maximum drawdown	3.50	2.41	+1.09
Martin ratio: Return relative to average drawdown	11.58	9.34	+2.25
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month.

XLK vs. VXUS - Sharpe Ratio Comparison

The current XLK Sharpe Ratio is 2.53, which is higher than the VXUS Sharpe Ratio of 1.73. The chart below compares the historical Sharpe Ratios of XLK and VXUS, 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

	XLK	VXUS	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	2.53	1.73	+0.80
Sharpe Ratio (5Y) Calculated over the trailing 5-year period	0.89	0.50	+0.40
Sharpe Ratio (10Y) Calculated over the trailing 10-year period	1.02	0.57	+0.46
Sharpe Ratio (All Time) Calculated using the full available price history	0.41	0.37	+0.03

Drawdowns

XLK vs. VXUS - Drawdown Comparison

The maximum XLK drawdown since its inception was -82.05%, which is greater than VXUS's maximum drawdown of -35.97%. Use the drawdown chart below to compare losses from any high point for XLK and VXUS.

Drawdown Indicators

	XLK	VXUS	Difference
Max Drawdown Largest peak-to-trough decline	-82.05%	-35.97%	-46.08%
Max Drawdown (1Y) Largest decline over 1 year	-15.92%	-11.27%	-4.65%
Max Drawdown (3Y) Largest decline over 3 years	-25.66%	-13.58%	-12.08%
Max Drawdown (5Y) Largest decline over 5 years	-33.56%	-29.44%	-4.12%
Max Drawdown (10Y) Largest decline over 10 years	-33.56%	-35.97%	+2.41%
Current Drawdown Current decline from peak	-7.08%	-3.70%	-3.38%
Average Drawdown Average peak-to-trough decline	-34.95%	-8.21%	-26.74%
Ulcer Index Depth and duration of drawdowns from previous peaks	4.80%	2.90%	+1.90%

Volatility

XLK vs. VXUS - Volatility Comparison

State Street Technology Select Sector SPDR ETF (XLK) has a higher volatility of 10.42% compared to Vanguard Total International Stock ETF (VXUS) at 6.03%. This indicates that XLK's price experiences larger fluctuations and is considered to be riskier than VXUS based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	XLK	VXUS	Difference
Volatility (1M) Calculated over the trailing 1-month period	10.42%	6.03%	+4.39%
Volatility (6M) Calculated over the trailing 6-month period	18.32%	13.60%	+4.72%
Volatility (1Y) Calculated over the trailing 1-year period	22.08%	15.71%	+6.37%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	25.10%	16.13%	+8.97%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	24.60%	17.19%	+7.41%

XLK vs. VXUS - Expense Ratio Comparison

XLK has a 0.08% expense ratio, which is higher than VXUS's 0.05% 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. VXUS - Dividend Comparison

XLK's dividend yield for the trailing twelve months is around 0.41%, less than VXUS's 2.73% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
VXUS Vanguard Total International Stock ETF	2.73%	3.18%	3.37%	3.24%	3.09%	3.10%	2.14%	3.06%	3.18%	2.73%	2.93%	2.83%
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 XLK and VXUS in my portfolio?

XLK and VXUS have a correlation of 0.67, 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 VXUS?

XLK has higher volatility (10.42%) compared to VXUS (6.03%). In terms of maximum drawdown, XLK dropped -82.05% vs VXUS's -35.97%.

Which ETF is better, XLK or VXUS?

On 10-year performance, XLK leads with 25.04% vs 9.68% for VXUS. On fees, VXUS is cheaper at 0.05% per year. On volatility, VXUS has been the lower-risk option at 6.03%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, XLK or VXUS?

Over the 10-year period, XLK has performed better with a 25.04% return vs 9.68%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, XLK or VXUS?

VXUS is cheaper with a 0.05% expense ratio, compared with 0.08% for XLK.

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

VXUS has the higher dividend yield at 2.73%, compared with 0.41% for XLK.

What is the main difference between XLK and VXUS?

XLK is categorized as Technology Equities, while VXUS is Global Equities. XLK tracks S&P Technology Select Sector Daily Capped 35/20 Index, while VXUS tracks FTSE Global All Cap ex US Index. They also come from different issuers: State Street and Vanguard. Their fees differ too: 0.08% for XLK and 0.05% for VXUS.

Which has better risk-adjusted returns?

XLK currently has the higher Sharpe Ratio (2.53 vs 1.73), 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.