VCIT vs XLK
Vanguard Intermediate Term Corporate Bond ETF vs State Street Technology Select Sector SPDR ETF
Which is better, VCIT or XLK?
Long Term Mid Quality against Large Cap Growth.
VCIT has a lower expense ratio. XLK led over 1Y, 3Y, 5Y and the full window.
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 | VCIT | XLK |
|---|---|---|
| Expense Ratio | 0.03%Best | 0.08% |
| AUM | $69.8B | $119.7B |
| Dividend Yield | 4.89% | 0.43% |
| Holdings | 2,271 | 77 |
| YTD Return | -1.71% | +28.67%Best |
| 1Y Return | -0.75% | +37.84%Best |
| 3Y Return (annualized) | +5.74% | +29.60%Best |
| 5Y Return (annualized) | +0.48% | +19.68%Best |
| Volatility (annualized) | 5.9%Best | 18.8% |
| Max Drawdown | -20.7%Best | -33.6% |
| $10,000 over 5 years | $10,242 | $24,553Best |
| Fund Family | Vanguard (US) | SPDR State Street Global Advisors |
| Category | Fixed Income | Equity |
| Style | Long Term Mid Quality | Large Cap Growth |
| Inception | Nov 19, 2009 | Dec 16, 1998 |
Not shown on this pair: Top 10 Weight.
Volatility and max drawdown are measured over the window both funds cover: Nov 23, 2009 to Sep 10, 2026 (16.8 years).
VCIT 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 is available from the range buttons; it is not the opening view here because over the whole period one of these two funds moves so much further than the other that its line would sit flat on the axis.
VCIT vs XLK Performance
Vanguard Intermediate Term Corporate Bond ETF (VCIT) 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 VCIT returned -0.75% while XLK returned +37.84%. Year to date, VCIT is down 1.71% versus a gain of 28.67% for XLK.
Over three years, VCIT compounded at +5.74% per year against +29.60% for XLK; over five years the annualized figures are +0.48% and +19.68% respectively. Across the full 17-year window we track, XLK has the edge at +18.58% annualized vs +1.66%.
Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
XLK has been the more volatile fund, with annualized monthly volatility of 18.8% compared with 5.9% for VCIT. 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 -20.7% for VCIT and -33.6% 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 0.42. They move together some of the time, and apart the rest.
Fees and Cost Over Time
VCIT charges 0.03% per year while XLK charges 0.08%. On a $10,000 position that is $3 vs $8 annually, a gap of $5 per year that compounds over a long holding period. On income, VCIT currently yields 4.89% against 0.43% for XLK.
Holdings Overlap
We hold position weights for 276 holdings in VCIT and 74 in XLK, totalling 14.7% and 100.0% of the two funds. The two books name no position in common, so there is no overlap percentage to show.
0 positions in common, counted across the 276 positions we hold weights for in VCIT and 74 in XLK, against full books of 2,271 and 77.
What only one of them owns
Measured across the 276 and 74 positions we hold weights for.
VCIT holds 249 positions XLK does not, 14.7% of the fund.
Largest: BAC V5.015 07/22/33 0.27%, JPM V4.912 07/25/33 0.25%, JPM V2.963 01/25/33 0.19%, MS V5.25 04/21/34 MT 0.19%, WFC V5.605 04/23/36 0.18%
You are not choosing between two funds in isolation.
Whichever of VCIT 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, VCIT or XLK?
VCIT has an expense ratio of 0.03% while XLK charges 0.08%. VCIT is the cheaper option, by $5 a year on a $10,000 investment.
Which performed better, VCIT or XLK?
Over the past year VCIT returned -0.75% vs +37.84% for XLK, so XLK leads on 1-year performance. Over the longest common window we track (17 years), VCIT annualized +1.66% vs +18.58% for XLK. Past performance does not guarantee future results. This is information, not a recommendation.
Which is riskier, VCIT or XLK?
XLK has been the more volatile fund at 18.8% annualized versus 5.9% for VCIT. Worst drawdown: VCIT -20.7% vs XLK -33.6%.
Should I hold both VCIT and XLK?
VCIT and XLK have a monthly-return correlation of 0.42, so their returns are far enough apart for the mix to behave differently from either one alone. This is information, not a recommendation.
Which pays a higher dividend, VCIT or XLK?
VCIT yields 4.89% while XLK yields 0.43%, so VCIT currently pays the higher dividend yield.
Is XLK better than VCIT?
VCIT has a lower expense ratio. XLK led over 1Y, 3Y, 5Y and the full window. Which one suits a particular account depends on what it is for. This is information, not a recommendation.