VBK vs XLK
Vanguard Morningstar Small-Cap Growth ETF vs State Street Technology Select Sector SPDR ETF
Quick Verdict
VBK has a lower expense ratio. XLK delivered stronger 1-year returns. VBK offers more diversification with 553 holdings.
Side-by-Side Comparison
| Metric | VBK | XLK | Winner |
|---|---|---|---|
| Expense Ratio | 0.05% | 0.08% | |
| AUM | $23.2B | $121.0B | |
| Dividend Yield | 0.45% | 0.45% | |
| Holdings | 553 | 77 | |
| YTD Return | +12.92% | +27.54% | |
| 1Y Return | +19.24% | +42.08% | |
| 3Y Return (annualized) | +15.64% | +28.51% | |
| 5Y Return (annualized) | +3.67% | +19.16% | |
| Volatility (annualized) | 19.5% | 23.2% | |
| Max Drawdown | -59.4% | -82.0% | |
| Fund Family | Vanguard (US) | SPDR State Street Global Advisors | |
| Category | Equity | Equity | |
| Inception | Jan 26, 2004 | Dec 16, 1998 |
VBK vs XLK Performance
Vanguard Morningstar Small-Cap Growth ETF (VBK) is a ETF from Vanguard (US) and State Street Technology Select Sector SPDR ETF (XLK) is a ETF from SPDR State Street Global Advisors. Over the past year VBK returned +19.24% while XLK returned +42.08%. Year to date, VBK is up 12.92% versus a gain of 27.54% for XLK.
Over three years, VBK compounded at +15.64% per year against +28.51% for XLK; over five years the annualized figures are +3.67% and +19.16% respectively. Across the full 23-year window we track, XLK has the edge at +9.37% annualized vs +9.18%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
XLK has been the more volatile fund, with annualized monthly volatility of 23.2% compared with 19.5% for VBK. Lower volatility generally means a smoother ride, though it often comes with lower long-run returns.
The deepest peak-to-trough decline in our data was -59.4% for VBK and -82.0% for XLK. Drawdown depth is worth weighing if you expect to sell during market stress rather than ride it out.
The two funds' monthly returns correlate at 0.80. They usually move together, but the gap leaves some room for diversification.
Fees and Cost Over Time
VBK charges 0.05% per year while XLK charges 0.08%. On a $10,000 position that is $5 vs $8 annually, a gap of $3 per year that compounds over a long holding period. On income, VBK currently yields 0.45% against 0.45% for XLK.
Holdings Overlap
VBK and XLK share 4 holdings out of 611 unique holdings combined, representing a 0.5% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Frequently Asked Questions
Which is cheaper, VBK or XLK?
VBK has an expense ratio of 0.05% while XLK charges 0.08%. VBK is the cheaper option. On a $10,000 investment, that is $3 per year of difference.
Which performed better, VBK or XLK?
Over the past year VBK returned +19.24% vs +42.08% for XLK, so XLK leads on 1-year performance. Over the longest common window we track (23 years), VBK annualized +9.18% vs +9.37% for XLK. Past performance does not guarantee future results.
Which is riskier, VBK or XLK?
XLK has been the more volatile fund at 23.2% annualized versus 19.5% for VBK. Worst drawdown: VBK -59.4% vs XLK -82.0%.
Should I hold both VBK and XLK?
VBK and XLK have a monthly-return correlation of 0.80, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between VBK and XLK?
VBK and XLK share 4 common holdings with a 0.5% weight overlap. Combined, they hold 611 unique securities.
Which pays a higher dividend, VBK or XLK?
VBK yields 0.45% while XLK yields 0.45%, so XLK currently pays the higher dividend yield.
Popular ETF Comparisons
Get Full ETF Analytics
Access complete holdings data, overlap analysis, screener tools, and more with FundXLS.