VEU vs XLK
Vanguard FTSE All World Ex US ETF vs State Street Technology Select Sector SPDR ETF
Which is better, VEU or XLK?
Large Cap Blend against Large Cap Growth.
VEU 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 | VEU | XLK |
|---|---|---|
| Expense Ratio | 0.04%Best | 0.08% |
| AUM | $68.4B | $119.7B |
| Dividend Yield | 2.48% | 0.43% |
| Holdings | 3,928 | 77 |
| YTD Return | +14.75% | +30.37%Best |
| 1Y Return | +22.92% | +39.20%Best |
| 3Y Return (annualized) | +20.30% | +30.96%Best |
| 5Y Return (annualized) | +9.19% | +20.02%Best |
| Volatility (annualized) | 17.7%Best | 19.5% |
| Max Drawdown | -62.8% | -53.6%Best |
| $10,000 over 5 years | $15,521 | $24,904Best |
| Fund Family | Vanguard (US) | SPDR State Street Global Advisors |
| Category | Equity | Equity |
| Style | Large Cap Blend | Large Cap Growth |
| Inception | Mar 2, 2007 | Dec 16, 1998 |
Not shown on this pair: Top 10 Weight.
Volatility and max drawdown are measured over the window both funds cover: Mar 8, 2007 to Sep 11, 2026 (19.5 years).
VEU 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.
VEU vs XLK Performance
Vanguard FTSE All World Ex US ETF (VEU) 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 VEU returned +22.92% while XLK returned +39.20%. Year to date, VEU is up 14.75% versus a gain of 30.37% for XLK.
Over three years, VEU compounded at +20.30% per year against +30.96% for XLK; over five years the annualized figures are +9.19% and +20.02% respectively. Across the full 20-year window we track, XLK has the edge at +15.65% annualized vs +3.55%.
Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
XLK has been the more volatile fund, with annualized monthly volatility of 19.5% compared with 17.7% for VEU. 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 -62.8% for VEU 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 0.73. They usually move together, but the gap leaves some room for diversification.
Fees and Cost Over Time
VEU charges 0.04% per year while XLK charges 0.08%. On a $10,000 position that is $4 vs $8 annually, a gap of $4 per year that compounds over a long holding period. On income, VEU currently yields 2.48% against 0.43% for XLK.
Holdings Overlap
At least 1.6% of XLK's money is in holdings VEU also owns.
Stated as a floor: for VEU, our book for it covers 94.0% of that fund, so a holding it does not list is one we cannot count as shared. The real figure is this or higher.
XLK and VEU share little of their money.
1 positions in common, counted across the 3,655 positions we hold weights for in VEU and 74 in XLK, against full books of 3,928 and 77.
What only one of them owns
Measured across the 3,655 and 74 positions we hold weights for.
VEU holds 46 positions XLK does not, 4.5% of the fund.
Largest: VEA 1.13%, SHEL 0.53%, CNH 0.48%, IBDRY 0.41%, ASX 0.18%
Top Shared Holdings
| Stock | Weight in VEU | Weight in XLK | Difference |
|---|---|---|---|
| ORCLOracle Corp. | 0.00% | 1.62% | 1.62% |
You are not choosing between two funds in isolation.
Whichever of VEU 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, VEU or XLK?
VEU has an expense ratio of 0.04% while XLK charges 0.08%. VEU is the cheaper option, by $4 a year on a $10,000 investment.
Which performed better, VEU or XLK?
Over the past year VEU returned +22.92% vs +39.20% for XLK, so XLK leads on 1-year performance. Over the longest common window we track (20 years), VEU annualized +3.55% vs +15.65% for XLK. Past performance does not guarantee future results. This is information, not a recommendation.
Which is riskier, VEU or XLK?
XLK has been the more volatile fund at 19.5% annualized versus 17.7% for VEU. Worst drawdown: VEU -62.8% vs XLK -53.6%.
Should I hold both VEU and XLK?
VEU and XLK have a monthly-return correlation of 0.73, 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 VEU and XLK?
At least 1.6% of XLK's money is in holdings VEU also owns. Our book for VEU is partial, so the real figure is this or higher. They hold 1 positions in common, counted across the 3,655 positions we hold weights for in VEU and 74 in XLK.
Which pays a higher dividend, VEU or XLK?
VEU yields 2.48% while XLK yields 0.43%, so VEU currently pays the higher dividend yield.
Is XLK better than VEU?
VEU 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.