VBR vs XLK
Vanguard Morningstar Small-Cap Value ETF vs State Street Technology Select Sector SPDR ETF
Which is better, VBR or XLK?
Small Cap Value against Large Cap Growth.
VBR has a lower expense ratio. XLK led over 1Y, 3Y, 5Y and the full window. VBR is less concentrated, with 5.9% of the fund in its ten largest positions against 61.3%.
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 | VBR | XLK |
|---|---|---|
| Expense Ratio | 0.05%Best | 0.08% |
| AUM | $37.3B | $119.7B |
| Dividend Yield | 1.76% | 0.43% |
| Holdings | 847 | 77 |
| YTD Return | +14.07% | +30.37%Best |
| 1Y Return | +16.26% | +39.20%Best |
| 3Y Return (annualized) | +16.15% | +30.96%Best |
| 5Y Return (annualized) | +9.41% | +20.02%Best |
| Volatility (annualized) | 19.0% | 18.8%Best |
| Max Drawdown | -64.0% | -53.6%Best |
| $10,000 over 5 years | $15,678 | $24,904Best |
| Top 10 Weight | 5.9%Best | 61.3% |
| Fund Family | Vanguard (US) | SPDR State Street Global Advisors |
| Category | Equity | Equity |
| Style | Small Cap Value | 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 11, 2026 (22.6 years).
VBR 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.
VBR vs XLK Performance
Vanguard Morningstar Small-Cap Value ETF (VBR) 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 VBR returned +16.26% while XLK returned +39.20%. Year to date, VBR is up 14.07% versus a gain of 30.37% for XLK.
Over three years, VBR compounded at +16.15% per year against +30.96% for XLK; over five years the annualized figures are +9.41% and +20.02% respectively. Across the full 23-year window we track, XLK has the edge at +13.75% annualized vs +7.84%.
Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
VBR has been the more volatile fund, with annualized monthly volatility of 19.0% 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 -64.0% for VBR 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 0.69. They move together some of the time, and apart the rest.
Fees and Cost Over Time
VBR 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, VBR currently yields 1.76% against 0.43% for XLK.
Holdings Overlap
3.7% of VBR's money is in holdings XLK also owns. 1.2% of XLK's money is in holdings VBR also owns.
VBR and XLK share little of their money.
10 positions in common, counted across the 835 positions we hold weights for in VBR and 74 in XLK, against full books of 847 and 77.
What only one of them owns
Measured across the 835 and 74 positions we hold weights for.
VBR holds 791 positions XLK does not, 92.8% of the fund.
Largest: NRG 0.66%, TPR 0.63%, ATO 0.61%, WSM 0.59%, MRNA 0.53%
Top Shared Holdings
| Stock | Weight in VBR | Weight in XLK | Difference |
|---|---|---|---|
| JBLJabil, Inc. | 0.87% | 0.23% | 0.64% |
| FFIVF5 Networks Inc. | 0.50% | 0.15% | 0.35% |
| QQnity Electronics | 0.36% | 0.19% | 0.17% |
| CDWCdw Corp. | 0.38% | 0.11% | 0.27% |
| AKAMAkamai Technologies Inc. | 0.37% | 0.10% | 0.27% |
| ZBRAZebra Technologies Corp | 0.27% | 0.12% | 0.15% |
| NLOKGen Digital Inc | 0.29% | 0.10% | 0.19% |
| TRMBTrimble Inc. | 0.25% | 0.09% | 0.16% |
| SWKSSkyworks Solutions Inc. | 0.22% | 0.07% | 0.15% |
| ITGartner Inc. | 0.18% | 0.08% | 0.10% |
You are not choosing between two funds in isolation.
Whichever of VBR 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, VBR or XLK?
VBR has an expense ratio of 0.05% while XLK charges 0.08%. VBR is the cheaper option, by $3 a year on a $10,000 investment.
Which performed better, VBR or XLK?
Over the past year VBR returned +16.26% vs +39.20% for XLK, so XLK leads on 1-year performance. Over the longest common window we track (23 years), VBR annualized +7.84% vs +13.75% for XLK. Past performance does not guarantee future results. This is information, not a recommendation.
Which is riskier, VBR or XLK?
VBR has been the more volatile fund at 19.0% annualized versus 18.8% for XLK. Worst drawdown: VBR -64.0% vs XLK -53.6%.
Should I hold both VBR and XLK?
VBR and XLK have a monthly-return correlation of 0.69, 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 VBR and XLK?
3.7% of VBR's money is in holdings XLK also owns. 1.2% of XLK's is in holdings VBR also owns. They hold 10 positions in common, counted across the 835 positions we hold weights for in VBR and 74 in XLK.
Which pays a higher dividend, VBR or XLK?
VBR yields 1.76% while XLK yields 0.43%, so VBR currently pays the higher dividend yield.
Is XLK better than VBR?
VBR has a lower expense ratio. XLK led over 1Y, 3Y, 5Y and the full window. VBR is less concentrated, with 5.9% of the fund in its ten largest positions against 61.3%. Which one suits a particular account depends on what it is for. This is information, not a recommendation.