VO vs XLK
Vanguard Morningstar Mid-Cap ETF vs State Street Technology Select Sector SPDR ETF
Which is better, VO or XLK?
Mid Cap Blend against Large Cap Growth.
VO has a lower expense ratio. XLK led over 1Y, 3Y, 5Y and the full window. VO is less concentrated, with 9.1% of the fund in its ten largest positions against 61.0%.
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 | VO | XLK |
|---|---|---|
| Expense Ratio | 0.03%Best | 0.08% |
| AUM | $107.4B | $126.4B |
| Dividend Yield | 1.30% | 0.43% |
| Holdings | 287 | 152 |
| YTD Return | +11.87% | +40.49%Best |
| 1Y Return | +11.21% | +41.19%Best |
| 3Y Return (annualized) | +17.78% | +34.63%Best |
| 5Y Return (annualized) | +7.84% | +22.63%Best |
| Volatility (annualized) | 16.9%Best | 18.8% |
| Max Drawdown | -60.3% | -53.6%Best |
| $10,000 over 5 years | $14,585 | $27,732Best |
| Top 10 Weight | 9.1%Best | 61.0% |
| Fund Family | Vanguard (US) | SPDR State Street Global Advisors |
| Category | Equity | Equity |
| Style | Mid Cap Blend | 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 Oct 6, 2026 (22.7 years).
VO 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 22.7 years both funds cover.
VO vs XLK Performance
Vanguard Morningstar Mid-Cap ETF (VO) 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 VO returned +11.21% while XLK returned +41.19%. Year to date, VO is up 11.87% versus a gain of 40.49% for XLK.
Over three years, VO compounded at +17.78% per year against +34.63% for XLK; over five years the annualized figures are +7.84% and +22.63% respectively. Across the full 23-year window we track, XLK has the edge at +14.08% annualized vs +9.06%.
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 16.9% for VO. 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 -60.3% for VO 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
VO 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, VO currently yields 1.30% against 0.43% for XLK.
Holdings Overlap
11.5% of VO's money is in holdings XLK also owns. 9.6% of XLK's money is in holdings VO also owns.
VO and XLK share little of their money.
26 positions in common, counted across the 283 positions we hold weights for in VO and 74 in XLK, against full books of 287 and 152.
What only one of them owns
Our book lists 47 positions for XLK that do not appear in our book for VO (89.7% of the fund), and 249 for VO that do not appear in XLK (85.5%).
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 VO | Weight in XLK | Difference |
|---|---|---|---|
| STXSeagate Technolo | 0.92% | 1.21% | 0.29% |
| WDCWestern Digital Corp. | 0.90% | 1.00% | 0.10% |
| DDOGDatadog Inc | 0.85% | 0.48% | 0.37% |
| MSIMotorola Solutions, Inc | 0.70% | 0.50% | 0.20% |
| HPEHewlett Packard Enterprise Co | 0.61% | 0.54% | 0.07% |
| FTNTFortinet Inc | 0.48% | 0.63% | 0.15% |
| MPWRMonolithic Power Systems Inc | 0.64% | 0.40% | 0.24% |
| LITELumentum Holdings Inc | 0.53% | 0.47% | 0.06% |
| TERTeradyne Inc - Common | 0.55% | 0.39% | 0.16% |
| KEYSKeysight Technologies Inc. | 0.52% | 0.38% | 0.14% |
You are not choosing between two funds in isolation.
Whichever of VO 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, VO or XLK?
VO has an expense ratio of 0.03% while XLK charges 0.08%. VO is the cheaper option, by $5 a year on a $10,000 investment.
Which performed better, VO or XLK?
Over the past year VO returned +11.21% vs +41.19% for XLK, so XLK leads on 1-year performance. Over the longest common window we track (23 years), VO annualized +9.06% vs +14.08% for XLK. Past performance does not guarantee future results. This is information, not a recommendation.
Which is riskier, VO or XLK?
XLK has been the more volatile fund at 18.8% annualized versus 16.9% for VO. Worst drawdown: VO -60.3% vs XLK -53.6%.
Should I hold both VO and XLK?
VO 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 VO and XLK?
11.5% of VO's money is in holdings XLK also owns. 9.6% of XLK's is in holdings VO also owns. They hold 26 positions in common, counted across the 283 positions we hold weights for in VO and 74 in XLK.
Which pays a higher dividend, VO or XLK?
VO yields 1.30% while XLK yields 0.43%, so VO currently pays the higher dividend yield.
Is XLK better than VO?
VO has a lower expense ratio. XLK led over 1Y, 3Y, 5Y and the full window. VO is less concentrated, with 9.1% of the fund in its ten largest positions against 61.0%. Which one suits a particular account depends on what it is for. This is information, not a recommendation.