VOO vs XLK
Vanguard S&P 500 ETF vs State Street Technology Select Sector SPDR ETF
Which is better, VOO or XLK?
Large Cap Blend against Large Cap Growth.
VOO has a lower expense ratio. XLK led over 1Y, 3Y, 5Y and the full window. VOO is less concentrated, with 37.6% 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 | VOO | XLK |
|---|---|---|
| Expense Ratio | 0.03%Best | 0.08% |
| AUM | $1.0T | $126.4B |
| Dividend Yield | 1.04% | 0.43% |
| Holdings | 506 | 152 |
| YTD Return | +14.98% | +40.49%Best |
| 1Y Return | +17.34% | +41.19%Best |
| 3Y Return (annualized) | +23.33% | +34.63%Best |
| 5Y Return (annualized) | +13.96% | +22.63%Best |
| Volatility (annualized) | 14.1%Best | 18.5% |
| Max Drawdown | -34.3% | -33.6%Best |
| $10,000 over 5 years | $19,220 | $27,732Best |
| Top 10 Weight | 37.6%Best | 61.0% |
| Fund Family | Vanguard (US) | SPDR State Street Global Advisors |
| Category | Equity | Equity |
| Style | Large Cap Blend | Large Cap Growth |
| Inception | Sep 7, 2010 | Dec 16, 1998 |
Volatility and max drawdown are measured over the window both funds cover: Sep 9, 2010 to Oct 6, 2026 (16.1 years).
VOO 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 16.1 years both funds cover.
VOO vs XLK Performance
Vanguard S&P 500 ETF (VOO) 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 VOO returned +17.34% while XLK returned +41.19%. Year to date, VOO is up 14.98% versus a gain of 40.49% for XLK.
Over three years, VOO compounded at +23.33% per year against +34.63% for XLK; over five years the annualized figures are +13.96% and +22.63% respectively. Across the full 16-year window we track, XLK has the edge at +20.26% annualized vs +13.50%.
Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
XLK has been the more volatile fund, with annualized monthly volatility of 18.5% compared with 14.1% for VOO. 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 -34.3% for VOO 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 0.88. They usually move together, but the gap leaves some room for diversification.
Fees and Cost Over Time
VOO 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, VOO currently yields 1.04% against 0.43% for XLK.
Holdings Overlap
36.3% of VOO's money is in holdings XLK also owns. 98.5% of XLK's money is in holdings VOO also owns.
Most of XLK is already inside VOO. Owning both mostly buys the same companies twice.
70 positions in common, counted across the 494 positions we hold weights for in VOO and 74 in XLK, against full books of 506 and 152.
What only one of them owns
Our book lists 3 positions for XLK that do not appear in our book for VOO (0.7% of the fund), and 417 for VOO that do not appear in XLK (62.9%).
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 VOO | Weight in XLK | Difference |
|---|---|---|---|
| NVDANvidia Corp | 7.55% | 14.11% | 6.56% |
| AAPLApple, Inc | 7.05% | 13.03% | 5.98% |
| MSFTMicrosoft Corp | 5.36% | 9.83% | 4.47% |
| AVGOBroadcom Inc | 2.86% | 4.58% | 1.72% |
| AMDAdvanced Micro Devices Inc | 1.21% | 4.28% | 3.07% |
| MUMicron Technology, Inc. | 1.44% | 4.04% | 2.60% |
| INTCIntel Corporation | 0.66% | 3.31% | 2.65% |
| CSCOCisco Systems Inc. - Ordinary Shares | 0.71% | 2.89% | 2.18% |
| LRCXLam Research Corp | 0.57% | 2.43% | 1.86% |
| AMATApplied Materials, Inc. | 0.63% | 2.36% | 1.73% |
98.5% of XLK is already inside VOO.
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, VOO or XLK?
VOO has an expense ratio of 0.03% while XLK charges 0.08%. VOO is the cheaper option, by $5 a year on a $10,000 investment.
Which performed better, VOO or XLK?
Over the past year VOO returned +17.34% vs +41.19% for XLK, so XLK leads on 1-year performance. Over the longest common window we track (16 years), VOO annualized +13.50% vs +20.26% for XLK. Past performance does not guarantee future results. This is information, not a recommendation.
Which is riskier, VOO or XLK?
XLK has been the more volatile fund at 18.5% annualized versus 14.1% for VOO. Worst drawdown: VOO -34.3% vs XLK -33.6%.
Should I hold both VOO and XLK?
VOO and XLK have a monthly-return correlation of 0.88, 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 VOO and XLK?
98.5% of XLK's money is in holdings VOO also owns. 98.5% of XLK's is in holdings VOO also owns. They hold 70 positions in common, counted across the 494 positions we hold weights for in VOO and 74 in XLK.
Which pays a higher dividend, VOO or XLK?
VOO yields 1.04% while XLK yields 0.43%, so VOO currently pays the higher dividend yield.
Is XLK better than VOO?
VOO has a lower expense ratio. XLK led over 1Y, 3Y, 5Y and the full window. VOO is less concentrated, with 37.6% 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.