VTEB vs XLK
Vanguard Tax-Exempt Bond ETF vs State Street Technology Select Sector SPDR ETF
Which is better, VTEB or XLK?
Municipal Bond against Large Cap Growth.
VTEB has a lower expense ratio. XLK led over 1Y, 3Y, 5Y and the full window.
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 | VTEB | XLK |
|---|---|---|
| Expense Ratio | 0.03%Best | 0.08% |
| AUM | $48.5B | $119.7B |
| Dividend Yield | 3.44% | 0.43% |
| Holdings | 10,566 | 77 |
| YTD Return | -1.99% | +28.67%Best |
| 1Y Return | +0.21% | +37.84%Best |
| 3Y Return (annualized) | +2.56% | +29.60%Best |
| 5Y Return (annualized) | +0.11% | +19.68%Best |
| Volatility (annualized) | 4.9%Best | 20.6% |
| Max Drawdown | -17.0%Best | -33.6% |
| $10,000 over 5 years | $10,055 | $24,553Best |
| Fund Family | Vanguard (US) | SPDR State Street Global Advisors |
| Category | Tax Preferred | Equity |
| Style | Municipal Bond | Large Cap Growth |
| Inception | Aug 21, 2015 | Dec 16, 1998 |
Not shown on this pair: Top 10 Weight.
Volatility and max drawdown are measured over the window both funds cover: Aug 25, 2015 to Sep 10, 2026 (11 years).
VTEB 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 is available from the range buttons; it is not the opening view here because over the whole period one of these two funds moves so much further than the other that its line would sit flat on the axis.
VTEB vs XLK Performance
Vanguard Tax-Exempt Bond ETF (VTEB) 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 VTEB returned +0.21% while XLK returned +37.84%. Year to date, VTEB is down 1.99% versus a gain of 28.67% for XLK.
Over three years, VTEB compounded at +2.56% per year against +29.60% for XLK; over five years the annualized figures are +0.11% and +19.68% respectively. Across the full 11-year window we track, XLK has the edge at +23.45% annualized vs +1.02%.
Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
XLK has been the more volatile fund, with annualized monthly volatility of 20.6% compared with 4.9% for VTEB. 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 -17.0% for VTEB 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 0.43. They move together some of the time, and apart the rest.
Fees and Cost Over Time
VTEB 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, VTEB currently yields 3.44% against 0.43% for XLK.
Holdings Overlap
We hold position weights for 994 holdings in VTEB and 74 in XLK, totalling 8.7% and 100.0% of the two funds. The two books name no position in common, so there is no overlap percentage to show.
0 positions in common, counted across the 994 positions we hold weights for in VTEB and 74 in XLK, against full books of 10,566 and 77.
What only one of them owns
Measured across the 994 and 74 positions we hold weights for.
VTEB holds 504 positions XLK does not, 8.7% of the fund.
Largest: MD MDS 5 06/01/2038 0.10%, CA CAS 5.25 08/01/20 0.10%, NY NYC 5 08/01/2034 0.09%, MA MAS 5 07/01/2029 0.07%, NH NHMBBK 5 08/15/20 0.06%
You are not choosing between two funds in isolation.
Whichever of VTEB 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, VTEB or XLK?
VTEB has an expense ratio of 0.03% while XLK charges 0.08%. VTEB is the cheaper option, by $5 a year on a $10,000 investment.
Which performed better, VTEB or XLK?
Over the past year VTEB returned +0.21% vs +37.84% for XLK, so XLK leads on 1-year performance. Over the longest common window we track (11 years), VTEB annualized +1.02% vs +23.45% for XLK. Past performance does not guarantee future results. This is information, not a recommendation.
Which is riskier, VTEB or XLK?
XLK has been the more volatile fund at 20.6% annualized versus 4.9% for VTEB. Worst drawdown: VTEB -17.0% vs XLK -33.6%.
Should I hold both VTEB and XLK?
VTEB and XLK have a monthly-return correlation of 0.43, so their returns are far enough apart for the mix to behave differently from either one alone. This is information, not a recommendation.
Which pays a higher dividend, VTEB or XLK?
VTEB yields 3.44% while XLK yields 0.43%, so VTEB currently pays the higher dividend yield.
Is XLK better than VTEB?
VTEB has a lower expense ratio. XLK led over 1Y, 3Y, 5Y and the full window. Which one suits a particular account depends on what it is for. This is information, not a recommendation.