VBK vs XLK
Vanguard Morningstar Small-Cap Growth ETF vs State Street Technology Select Sector SPDR ETF
Which is better, VBK or XLK?
Small Cap Growth against Large Cap Growth.
VBK has a lower expense ratio. XLK led over 1Y, 3Y, 5Y and the full window. VBK is less concentrated, with 9.1% of the fund in its ten largest positions against 61.2%.
MarketXLS is not an investment adviser. This comparison is generated automatically from market data and is for information only. A Best mark means the better reading on that one measure, not a recommendation to buy.
Side-by-Side Comparison
| Metric | VBK | XLK |
|---|---|---|
| Expense Ratio | 0.05%Best | 0.08% |
| AUM | $23.2B | $119.7B |
| Dividend Yield | 0.44% | 0.43% |
| Holdings | 553 | 77 |
| YTD Return | +11.22% | +35.70%Best |
| 1Y Return | +12.89% | +39.97%Best |
| 3Y Return (annualized) | +17.53% | +34.15%Best |
| 5Y Return (annualized) | +3.57% | +20.93%Best |
| Volatility (annualized) | 19.6% | 18.8%Best |
| Max Drawdown | -59.4% | -53.6%Best |
| $10,000 over 5 years | $11,917 | $25,862Best |
| Top 10 Weight | 9.1%Best | 61.2% |
| Fund Family | Vanguard (US) | SPDR State Street Global Advisors |
| Category | Equity | Equity |
| Style | Small Cap Growth | Large Cap Growth |
| Inception | Jan 26, 2004 | Dec 16, 1998 |
Volatility and max drawdown are measured over the window both funds cover: Jan 30, 2004 to Sep 23, 2026 (22.6 years).
VBK vs XLK growth
Month-end closes. Both lines start at 0% in the first month shown, so the gap between them is the difference in growth across that window. The full view covers the 22.6 years both funds cover.
VBK vs XLK Performance
Vanguard Morningstar Small-Cap Growth ETF (VBK) is an ETF from Vanguard (US) and State Street Technology Select Sector SPDR ETF (XLK) is an ETF from SPDR State Street Global Advisors. Over the past year VBK returned +12.89% while XLK returned +39.97%. Year to date, VBK is up 11.22% versus a gain of 35.70% for XLK.
Over three years, VBK compounded at +17.53% per year against +34.15% for XLK; over five years the annualized figures are +3.57% and +20.93% respectively. Across the full 23-year window we track, XLK has the edge at +13.93% annualized vs +9.08%.
Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
VBK has been the more volatile fund, with annualized monthly volatility of 19.6% compared with 18.8% for XLK. 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 -53.6% for XLK. Drawdown depth is what each fund did in the worst stretch of the window measured above.
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 0.44% against 0.43% for XLK.
Holdings Overlap
1.3% of VBK's money is in holdings XLK also owns. 0.5% of XLK's money is in holdings VBK also owns.
VBK and XLK share little of their money.
The two holdings books were reported 63 days apart, VBK as of Jun 30, 2026 and XLK as of Sep 1, 2026, so some of the difference between them is the time between the two reports rather than the funds.
4 positions in common, counted across the 542 positions we hold weights for in VBK and 74 in XLK, against full books of 553 and 77.
What only one of them owns
Our book lists 69 positions for XLK that do not appear in our book for VBK (98.8% of the fund), and 521 for VBK that do not appear in XLK (91.1%).
Some of those will be the same company recorded under a different code in one of the two books, so the real difference in what you would own is no larger than this and may be smaller. We do not name the individual positions here for that reason.
You are not choosing between two funds in isolation.
Whichever of VBK and XLK you pick has to sit alongside everything else you own. Add the rest and see what the combination actually holds.
Free for up to 10 holdings. No account needed.
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, by $3 a year on a $10,000 investment.
Which performed better, VBK or XLK?
Over the past year VBK returned +12.89% vs +39.97% for XLK, so XLK leads on 1-year performance. Over the longest common window we track (23 years), VBK annualized +9.08% vs +13.93% for XLK. Past performance does not guarantee future results. This is information, not a recommendation.
Which is riskier, VBK or XLK?
VBK has been the more volatile fund at 19.6% annualized versus 18.8% for XLK. Worst drawdown: VBK -59.4% vs XLK -53.6%.
Should I hold both VBK and XLK?
VBK and XLK have a monthly-return correlation of 0.80, so their returns are far enough apart for the mix to behave differently from either one alone. This is information, not a recommendation.
What is the holdings overlap between VBK and XLK?
1.3% of VBK's money is in holdings XLK also owns. 0.5% of XLK's is in holdings VBK also owns. They hold 4 positions in common, counted across the 542 positions we hold weights for in VBK and 74 in XLK.
Which pays a higher dividend, VBK or XLK?
VBK yields 0.44% while XLK yields 0.43%, so VBK currently pays the higher dividend yield.
Is XLK better than VBK?
VBK has a lower expense ratio. XLK led over 1Y, 3Y, 5Y and the full window. VBK is less concentrated, with 9.1% of the fund in its ten largest positions against 61.2%. Which one suits a particular account depends on what it is for. This is information, not a recommendation.