VONG vs XLK
Vanguard Russell 1000 Growth ETF vs State Street Technology Select Sector SPDR ETF
Quick Verdict
VONG has a lower expense ratio. XLK delivered stronger 1-year returns. VONG offers more diversification with 373 holdings.
Side-by-Side Comparison
| Metric | VONG | XLK | Winner |
|---|---|---|---|
| Expense Ratio | 0.06% | 0.08% | |
| AUM | $51.6B | $124.4B | |
| Dividend Yield | 0.48% | 0.45% | |
| Holdings | 373 | 77 | |
| YTD Return | +4.01% | +27.34% | |
| 1Y Return | +12.19% | +42.34% | |
| 3Y Return (annualized) | +22.47% | +30.61% | |
| 5Y Return (annualized) | +12.11% | +19.29% | |
| Volatility (annualized) | 15.9% | 23.2% | |
| Max Drawdown | -32.7% | -82.0% | |
| Fund Family | Vanguard (US) | SPDR State Street Global Advisors | |
| Category | Equity | Equity | |
| Inception | Sep 20, 2010 | Dec 16, 1998 |
VONG vs XLK Performance
Vanguard Russell 1000 Growth ETF (VONG) is a ETF from Vanguard (US) and State Street Technology Select Sector SPDR ETF (XLK) is a ETF from SPDR State Street Global Advisors. Over the past year VONG returned +12.19% while XLK returned +42.34%. Year to date, VONG is up 4.01% versus a gain of 27.34% for XLK.
Over three years, VONG compounded at +22.47% per year against +30.61% for XLK; over five years the annualized figures are +12.11% and +19.29% respectively. Across the full 16-year window we track, VONG has the edge at +15.63% annualized vs +9.37%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
XLK has been the more volatile fund, with annualized monthly volatility of 23.2% compared with 15.9% for VONG. 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 -32.7% for VONG and -82.0% for XLK. Drawdown depth is worth weighing if you expect to sell during market stress rather than ride it out.
The two funds' monthly returns correlate at 0.94. They move almost in lockstep, so holding both mostly duplicates the same exposure.
Fees and Cost Over Time
VONG charges 0.06% per year while XLK charges 0.08%. On a $10,000 position that is $6 vs $8 annually, a gap of $2 per year that compounds over a long holding period. On income, VONG currently yields 0.48% against 0.45% for XLK.
Holdings Overlap
VONG and XLK share 48 holdings out of 398 unique holdings combined, representing a 50.8% weight overlap.
High overlap means holding both may not provide much additional diversification.
Frequently Asked Questions
Which is cheaper, VONG or XLK?
VONG has an expense ratio of 0.06% while XLK charges 0.08%. VONG is the cheaper option. On a $10,000 investment, that is $2 per year of difference.
Which performed better, VONG or XLK?
Over the past year VONG returned +12.19% vs +42.34% for XLK, so XLK leads on 1-year performance. Over the longest common window we track (16 years), VONG annualized +15.63% vs +9.37% for XLK. Past performance does not guarantee future results.
Which is riskier, VONG or XLK?
XLK has been the more volatile fund at 23.2% annualized versus 15.9% for VONG. Worst drawdown: VONG -32.7% vs XLK -82.0%.
Should I hold both VONG and XLK?
VONG and XLK have a monthly-return correlation of 0.94, so they move almost identically. Holding both adds little diversification - most investors pick one, usually on fees or the specific index tracked.
What is the holdings overlap between VONG and XLK?
VONG and XLK share 48 common holdings with a 50.8% weight overlap. Combined, they hold 398 unique securities.
Which pays a higher dividend, VONG or XLK?
VONG yields 0.48% while XLK yields 0.45%, so VONG currently pays the higher dividend yield.
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