VTBNX vs XLK
Vanguard Total Bond Market II Index Fund Institutional Shares vs State Street Technology Select Sector SPDR ETF
Quick Verdict
VTBNX has a lower expense ratio. XLK delivered stronger 1-year returns. VTBNX offers more diversification with 15,623 holdings.
Side-by-Side Comparison
| Metric | VTBNX | XLK | Winner |
|---|---|---|---|
| Expense Ratio | 0.02% | 0.08% | |
| AUM | $207.3B | $124.4B | |
| Dividend Yield | 3.79% | 0.45% | |
| Holdings | 15,623 | 77 | |
| YTD Return | -2.70% | +25.08% | |
| 1Y Return | -1.68% | +38.25% | |
| 3Y Return (annualized) | +0.65% | +29.63% | |
| 5Y Return (annualized) | -3.55% | +18.87% | |
| Volatility (annualized) | 6.3% | 23.2% | |
| Max Drawdown | -21.5% | -82.0% | |
| Fund Family | Vanguard (US) | SPDR State Street Global Advisors | |
| Category | Fixed Income | Equity | |
| Inception | Feb 17, 2009 | Dec 16, 1998 |
VTBNX vs XLK Performance
Vanguard Total Bond Market II Index Fund Institutional Shares (VTBNX) is a mutual fund 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 VTBNX returned -1.68% while XLK returned +38.25%. Year to date, VTBNX is down 2.70% versus a gain of 25.08% for XLK.
Over three years, VTBNX compounded at +0.65% per year against +29.63% for XLK; over five years the annualized figures are -3.55% and +18.87% respectively. Across the full 5-year window we track, XLK has the edge at +9.30% annualized vs -3.55%. 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 6.3% for VTBNX. 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 -21.5% for VTBNX 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 0.52. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
VTBNX charges 0.02% per year while XLK charges 0.08%. On a $10,000 position that is $2 vs $8 annually, a gap of $6 per year that compounds over a long holding period. On income, VTBNX currently yields 3.79% against 0.45% for XLK.
Holdings Overlap
VTBNX and XLK share 1 holdings out of 12802 unique holdings combined, representing a 0.0% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Top Shared Holdings
| Stock | Weight in VTBNX | Weight in XLK | Difference |
|---|---|---|---|
| LRCX | 0.00% | 2.90% | 2.90% |
Frequently Asked Questions
Which is cheaper, VTBNX or XLK?
VTBNX has an expense ratio of 0.02% while XLK charges 0.08%. VTBNX is the cheaper option. On a $10,000 investment, that is $6 per year of difference.
Which performed better, VTBNX or XLK?
Over the past year VTBNX returned -1.68% vs +38.25% for XLK, so XLK leads on 1-year performance. Over the longest common window we track (5 years), VTBNX annualized -3.55% vs +9.30% for XLK. Past performance does not guarantee future results.
Which is riskier, VTBNX or XLK?
XLK has been the more volatile fund at 23.2% annualized versus 6.3% for VTBNX. Worst drawdown: VTBNX -21.5% vs XLK -82.0%.
Should I hold both VTBNX and XLK?
VTBNX and XLK have a monthly-return correlation of 0.52, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between VTBNX and XLK?
VTBNX and XLK share 1 common holdings with a 0.0% weight overlap. Combined, they hold 12802 unique securities.
Which pays a higher dividend, VTBNX or XLK?
VTBNX yields 3.79% while XLK yields 0.45%, so VTBNX currently pays the higher dividend yield.
Popular Fund Comparisons
Get Full ETF Analytics
Access complete holdings data, overlap analysis, screener tools, and more with FundXLS.