XSW vs. VGT

Last updated Jun 24, 2026

XSW (SPDR S&P Software & Services ETF) and VGT (Vanguard Information Technology ETF) are both Technology Equities funds - XSW tracks the S&P Software & Services Select Industry Index while VGT tracks the MSCI USA IMI Information Technology 25/50 Index. Both are passively managed. Over the past 10 years, XSW returned 12.80%/yr vs 25.49%/yr for VGT. A 0.78 correlation means they provide meaningful diversification when combined. XSW charges 0.35%/yr vs 0.09%/yr for VGT.

Performance

XSW vs. VGT - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in SPDR S&P Software & Services ETF (XSW) 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, XSW achieves a -13.68% return, which is significantly lower than VGT's 23.32% return. Over the past 10 years, XSW has underperformed VGT with an annualized return of 12.80%, while VGT has yielded a comparatively higher 25.49% annualized return.

XSW

• 1D: 0.86%
• 1M: -2.12%
• YTD: -13.68%
• 6M: -15.49%
• 1Y: -10.86%
• 3Y*: 8.06%
• 5Y*: -1.20%
• 10Y*: 12.80%

VGT

• 1D: -3.68%
• 1M: 0.28%
• YTD: 23.32%
• 6M: 21.50%
• 1Y: 46.82%
• 3Y*: 30.13%
• 5Y*: 19.51%
• 10Y*: 25.49%

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

XSW vs. VGT - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
XSW SPDR S&P Software & Services ETF	-13.68%	-0.90%	25.81%	38.60%	-34.22%	7.47%	52.41%	36.50%	7.67%	27.94%
VGT Vanguard Information Technology ETF	23.32%	21.77%	29.30%	52.66%	-29.70%	30.45%	46.04%	48.62%	2.46%	37.08%

Correlation

The correlation between XSW and VGT is 0.60, 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	0.60
Correlation (3Y) Calculated over the trailing 3-year period	0.70
Correlation (5Y) Calculated over the trailing 5-year period	0.78
Correlation (10Y) Calculated over the trailing 10-year period	0.79
Correlation (All Time) Calculated using the full available price history since Sep 29, 2011	0.78

The correlation between XSW and VGT shifts across timeframes, from 0.60 (1 year) to 0.79 (10 years), reflecting how their relationship changes across market environments.

XSW vs. VGT - Sectors Allocation Comparison

Sectors	XSW	VGT
Technology	85.9%	98.5%
Financial Services	9.0%	0.5%
Communication Services	2.7%	0.5%
Consumer Cyclical	1.1%	0.1%
Healthcare	0.8%	0.0%
Industrials	0.6%	0.4%
Basic Materials	-	0.0%
Consumer Defensive	-	-
Energy	-	0.3%
Real Estate	-	-
Utilities	-	-

Return for Risk

XSW vs. VGT — Risk / Return Rank

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

XSW

XSW Risk / Return Rank: 6
XSW Sharpe Ratio Rank: 6
XSW Sortino Ratio Rank: 6
XSW Omega Ratio Rank: 6
XSW Calmar Ratio Rank: 6
XSW Martin Ratio Rank: 6

VGT

VGT Risk / Return Rank: 58
VGT Sharpe Ratio Rank: 65
VGT Sortino Ratio Rank: 56
VGT Omega Ratio Rank: 58
VGT Calmar Ratio Rank: 60
VGT Martin Ratio Rank: 52

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.

XSW vs. VGT - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for SPDR S&P Software & Services ETF (XSW) 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.

	XSW	VGT	Difference
Sharpe ratio: Return per unit of total volatility	-0.38	2.07	-2.45
Sortino ratio: Return per unit of downside risk	-0.34	2.61	-2.95
Omega ratio: Gain probability vs. loss probability	0.96	1.35	-0.39
Calmar ratio: Return relative to maximum drawdown	-0.32	2.87	-3.19
Martin ratio: Return relative to average drawdown	-0.67	8.76	-9.43

XSW vs. VGT - Sharpe Ratio Comparison

The current XSW Sharpe Ratio is -0.38, which is lower than the VGT Sharpe Ratio of 2.07. The chart below compares the historical Sharpe Ratios of XSW 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

XSW vs. VGT - Drawdown Comparison

The maximum XSW drawdown since its inception was -45.38%, smaller than the maximum VGT drawdown of -54.63%. Use the drawdown chart below to compare losses from any high point for XSW and VGT.

Drawdown Indicators

	XSW	VGT	Difference
Max Drawdown Largest peak-to-trough decline	-45.38%	-54.63%	+9.25%
Max Drawdown (1Y) Largest decline over 1 year	-33.75%	-16.40%	-17.35%
Max Drawdown (3Y) Largest decline over 3 years	-33.75%	-27.23%	-6.52%
Max Drawdown (5Y) Largest decline over 5 years	-45.38%	-35.07%	-10.31%
Max Drawdown (10Y) Largest decline over 10 years	-45.38%	-35.07%	-10.31%
Current Drawdown Current decline from peak	-21.30%	-7.71%	-13.59%
Average Drawdown Average peak-to-trough decline	-9.86%	-7.95%	-1.91%
Ulcer Index Depth and duration of drawdowns from previous peaks	16.31%	5.36%	+10.95%

Volatility

XSW vs. VGT - Volatility Comparison

SPDR S&P Software & Services ETF (XSW) and Vanguard Information Technology ETF (VGT) have volatilities of 11.42% and 11.39%, respectively, indicating that both stocks experience similar levels of price fluctuations. This suggests that the risk associated with both stocks, as measured by volatility, is nearly the same. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	XSW	VGT	Difference
Volatility (1M) Calculated over the trailing 1-month period	11.42%	11.39%	+0.03%
Volatility (6M) Calculated over the trailing 6-month period	23.81%	18.58%	+5.23%
Volatility (1Y) Calculated over the trailing 1-year period	28.83%	22.72%	+6.11%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	28.89%	25.55%	+3.34%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	26.26%	24.77%	+1.49%

XSW vs. VGT - Expense Ratio Comparison

XSW has a 0.35% expense ratio, which is higher than VGT's 0.09% expense ratio.

Dividends

XSW vs. VGT - Dividend Comparison

XSW has not paid dividends to shareholders, while VGT's dividend yield for the trailing twelve months is around 0.33%.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
VGT Vanguard Information Technology ETF	0.33%	0.40%	0.60%	0.65%	0.91%	0.64%	0.82%	1.11%	1.29%	0.99%	1.31%	1.28%
XSW SPDR S&P Software & Services ETF	0.00%	0.06%	0.07%	0.20%	0.09%	0.13%	0.26%	0.12%	0.31%	0.46%	0.87%	0.54%

Frequently Asked Questions

Can I hold both XSW and VGT in my portfolio?

XSW and VGT have a correlation of 0.60, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, XSW or VGT?

XSW has higher volatility (11.42%) compared to VGT (11.39%). In terms of maximum drawdown, XSW dropped -45.38% vs VGT's -54.63%.

Which ETF is better, XSW or VGT?

On 10-year performance, VGT leads with 25.49% vs 12.80% for XSW. On fees, VGT is cheaper at 0.09% per year. Their volatility is very similar. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, XSW or VGT?

Over the 10-year period, VGT has performed better with a 25.49% return vs 12.80%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, XSW or VGT?

VGT is cheaper with a 0.09% expense ratio, compared with 0.35% for XSW.

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

VGT has the higher dividend yield at 0.33%, compared with 0.00% for XSW.

What is the main difference between XSW and VGT?

XSW tracks S&P Software & Services Select Industry 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: 0.35% for XSW and 0.09% for VGT.

Which has better risk-adjusted returns?

VGT currently has the higher Sharpe Ratio (2.07 vs -0.38), 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.