VOT vs XLK

VOT vs XLK

Which is better, VOT or XLK?

Mid Cap Growth against Large Cap Growth.

VOT has a lower expense ratio. XLK led over 1Y, 3Y, 5Y and the full window. VOT is less concentrated, with 21.2% of the fund in its ten largest positions against 61.3%.

Lower Fees: VOTHigher Returns: XLKLess Concentrated: VOT

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

MetricVOTXLK
Expense Ratio0.05%Best0.08%
AUM$19.1B$119.7B
Dividend Yield0.60%0.43%
Holdings12977
YTD Return+5.22%+30.37%Best
1Y Return+1.02%+39.20%Best
3Y Return (annualized)+14.09%+30.96%Best
5Y Return (annualized)+4.45%+20.02%Best
Volatility (annualized)18.5%Best19.3%
Max Drawdown-60.3%-53.6%Best
$10,000 over 5 years$12,432$24,904Best
Top 10 Weight21.2%Best61.3%
Fund FamilyVanguard (US)SPDR State Street Global Advisors
CategoryEquityEquity
StyleMid Cap GrowthLarge Cap Growth
InceptionAug 17, 2006Dec 16, 1998

Volatility and max drawdown are measured over the window both funds cover: Aug 24, 2006 to Sep 11, 2026 (20 years).

VOT 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 years both funds cover.

VOT vs XLK Performance

Vanguard Morningstar Mid-Cap Growth ETF (VOT) 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 VOT returned +1.02% while XLK returned +39.20%. Year to date, VOT is up 5.22% versus a gain of 30.37% for XLK.

Over three years, VOT compounded at +14.09% per year against +30.96% for XLK; over five years the annualized figures are +4.45% and +20.02% respectively. Across the full 20-year window we track, XLK has the edge at +15.79% 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 19.3% compared with 18.5% for VOT. 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 VOT 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 0.84. They usually move together, but the gap leaves some room for diversification.

Fees and Cost Over Time

VOT charges 0.05% per year while XLK charges 0.08%. On a $10,000 position that is $5 vs $8 annually, a gap of $3 per year that compounds over a long holding period. On income, VOT currently yields 0.60% against 0.43% for XLK.

Holdings Overlap

VOT already in XLK21.8%
XLK already in VOT7.7%

21.8% of VOT's money is in holdings XLK also owns. 7.7% of XLK's money is in holdings VOT also owns.

VOT and XLK share little of their money.

18 positions in common, counted across the 121 positions we hold weights for in VOT and 74 in XLK, against full books of 129 and 77.

What only one of them owns

Measured across the 121 and 74 positions we hold weights for.

VOT holds 97 positions XLK does not, 74.4% of the fund.

Largest: VRT 2.82%, PWR 2.37%, HWM 2.36%, BE 1.79%, CEG 1.77%

Top Shared Holdings

StockWeight in VOTWeight in XLKDifference
STXSeagate Technology Plc2.37%1.19%1.18%
WDCWestern Digital Corp.2.41%0.97%1.44%
DDOGDatadog Inc. Class A1.89%0.50%1.39%
COHRCoherent, Inc1.69%0.48%1.21%
TERTeradyne Inc1.66%0.39%1.27%
MSIMotorola Solutions Inc.1.51%0.51%1.00%
LITELumentum Holdings Inc1.46%0.45%1.01%
CIENCiena Corp1.52%0.38%1.14%
MPWRMonolithic Power Systems Inc1.42%0.45%0.97%
FTNTFortinet Inc.1.05%0.65%0.40%

21.8% of VOT is already inside XLK.

You probably hold more than these two. Add the rest and see how much of the whole book is the same companies twice.

VOTXLK

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Frequently Asked Questions

Which is cheaper, VOT or XLK?

VOT has an expense ratio of 0.05% while XLK charges 0.08%. VOT is the cheaper option, by $3 a year on a $10,000 investment.

Which performed better, VOT or XLK?

Over the past year VOT returned +1.02% vs +39.20% for XLK, so XLK leads on 1-year performance. Over the longest common window we track (20 years), VOT annualized +9.37% vs +15.79% for XLK. Past performance does not guarantee future results. This is information, not a recommendation.

Which is riskier, VOT or XLK?

XLK has been the more volatile fund at 19.3% annualized versus 18.5% for VOT. Worst drawdown: VOT -60.3% vs XLK -53.6%.

Should I hold both VOT and XLK?

VOT and XLK have a monthly-return correlation of 0.84, 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 VOT and XLK?

21.8% of VOT's money is in holdings XLK also owns. 7.7% of XLK's is in holdings VOT also owns. They hold 18 positions in common, counted across the 121 positions we hold weights for in VOT and 74 in XLK.

Which pays a higher dividend, VOT or XLK?

VOT yields 0.60% while XLK yields 0.43%, so VOT currently pays the higher dividend yield.

Is XLK better than VOT?

VOT has a lower expense ratio. XLK led over 1Y, 3Y, 5Y and the full window. VOT is less concentrated, with 21.2% 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.