VIG vs XLK
Vanguard Dividend Appreciation ETF vs State Street Technology Select Sector SPDR ETF
Which is better, VIG or XLK?
Large Cap Blend against Large Cap Growth.
VIG has a lower expense ratio. XLK led over 1Y, 3Y, 5Y and the full window. VIG is less concentrated, with 32.0% 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 | VIG | XLK |
|---|---|---|
| Expense Ratio | 0.04%Best | 0.08% |
| AUM | $111.4B | $121.0B |
| Dividend Yield | 1.49% | 0.45% |
| Holdings | 335 | 77 |
| YTD Return | +10.61% | +30.10%Best |
| 1Y Return | +16.14% | +43.36%Best |
| 3Y Return (annualized) | +16.34% | +29.30%Best |
| 5Y Return (annualized) | +10.51% | +19.56%Best |
| Volatility (annualized) | 13.2%Best | 19.3% |
| Max Drawdown | -48.2%Best | -53.6% |
| $10,000 over 5 years | $16,482 | $24,430Best |
| Top 10 Weight | 32.0%Best | 61.3% |
| Fund Family | Vanguard (US) | SPDR State Street Global Advisors |
| Category | Equity | Equity |
| Style | Large Cap Blend | Large Cap Growth |
| Inception | Apr 21, 2006 | Dec 16, 1998 |
Volatility and max drawdown are measured over the window both funds cover: Apr 27, 2006 to Sep 4, 2026 (20.4 years).
VIG 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 20.4 years both funds cover.
VIG vs XLK Performance
Vanguard Dividend Appreciation ETF (VIG) 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 VIG returned +16.14% while XLK returned +43.36%. Year to date, VIG is up 10.61% versus a gain of 30.10% for XLK.
Over three years, VIG compounded at +16.34% per year against +29.30% for XLK; over five years the annualized figures are +10.51% and +19.56% respectively. Across the full 20-year window we track, XLK has the edge at +15.09% annualized vs +8.58%.
Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
XLK has been the more volatile fund, with annualized monthly volatility of 19.3% compared with 13.2% for VIG. 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 -48.2% for VIG 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 0.79. They usually move together, but the gap leaves some room for diversification.
Fees and Cost Over Time
VIG 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, VIG currently yields 1.49% against 0.45% for XLK.
Holdings Overlap
25.9% of VIG's money is in holdings XLK also owns. 45.6% of XLK's money is in holdings VIG also owns.
The two portfolios partly overlap.
18 positions in common, counted across the 331 positions we hold weights for in VIG and 74 in XLK, against full books of 335 and 77.
What only one of them owns
Our book lists 55 positions for XLK that do not appear in our book for VIG (53.7% of the fund), and 291 for VIG that do not appear in XLK (73.4%).
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.
Top Shared Holdings
| Stock | Weight in VIG | Weight in XLK | Difference |
|---|---|---|---|
| AAPLApple, Inc | 4.22% | 12.26% | 8.04% |
| MSFTMicrosoft Corp 4.100 Feb 06 37 | 3.53% | 9.91% | 6.38% |
| AVGOBroadcom Inc | 4.55% | 5.40% | 0.85% |
| CSCOCisco Systems Inc. - Ordinary Shares | 2.03% | 3.12% | 1.09% |
| LRCXLam Research Corp | 2.37% | 2.54% | 0.17% |
| KLACKla Corp | 1.73% | 1.69% | 0.04% |
| TXNTexas Instrument Inc | 1.19% | 1.70% | 0.51% |
| ORCLOracle Corp - Common | 1.09% | 1.62% | 0.53% |
| IBMInternational Business Machines Corp. | 1.16% | 1.44% | 0.28% |
| APHAmphenol Corp. Class A | 0.95% | 1.36% | 0.41% |
45.6% of XLK is already inside VIG.
You probably hold more than these two. Add the rest and see how much of the whole book is the same companies twice.
Free for up to 10 holdings. No account needed.
Frequently Asked Questions
Which is cheaper, VIG or XLK?
VIG has an expense ratio of 0.04% while XLK charges 0.08%. VIG is the cheaper option, by $4 a year on a $10,000 investment.
Which performed better, VIG or XLK?
Over the past year VIG returned +16.14% vs +43.36% for XLK, so XLK leads on 1-year performance. Over the longest common window we track (20 years), VIG annualized +8.58% vs +15.09% for XLK. Past performance does not guarantee future results. This is information, not a recommendation.
Which is riskier, VIG or XLK?
XLK has been the more volatile fund at 19.3% annualized versus 13.2% for VIG. Worst drawdown: VIG -48.2% vs XLK -53.6%.
Should I hold both VIG and XLK?
VIG and XLK have a monthly-return correlation of 0.79, 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 VIG and XLK?
45.6% of XLK's money is in holdings VIG also owns. 45.6% of XLK's is in holdings VIG also owns. They hold 18 positions in common, counted across the 331 positions we hold weights for in VIG and 74 in XLK.
Which pays a higher dividend, VIG or XLK?
VIG yields 1.49% while XLK yields 0.45%, so VIG currently pays the higher dividend yield.
Is XLK better than VIG?
VIG has a lower expense ratio. XLK led over 1Y, 3Y, 5Y and the full window. VIG is less concentrated, with 32.0% 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.