VTILX vs XLK

VTILX vs XLK

Which is better, VTILX or XLK?

VTILX costs less.

VTILX has a lower expense ratio.

Lower Fees: VTILX

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

MetricVTILXXLK
Expense Ratio0.07%Best0.08%
AUM$141.9B$119.7B
Dividend Yield4.23%0.43%
Holdings7,41577
YTD Price Return-2.69%+30.06%
1Y Price Return-4.85%+38.47%
3Y Price Return (annualized)-0.85%+30.10%
5Y Price Return (annualized)-3.12%+19.12%
Volatility (annualized)6.0%Best24.1%
Max Drawdown-15.3%Best-34.0%
Fund FamilyVanguard (US)SPDR State Street Global Advisors
CategoryFixed IncomeEquity
Style-Large Cap Growth
InceptionFeb 17, 2021Dec 16, 1998

Not shown on this pair: $10,000 over 5 years, Top 10 Weight.

A price return is not the return of a fund that pays its income out. The coupon or distribution never appears in the price, so the return rows carry no winner here. VTILX currently yields 4.23% and XLK 0.43%.

Volatility and max drawdown are measured over the window both funds cover: Oct 25, 2021 to Sep 11, 2026 (4.9 years).

VTILX vs XLK Performance

Vanguard Total International Bond II Index Fund Class Institutional (VTILX) is a mutual fund 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 VTILX's price moved -4.85% and XLK's +38.47%, before the income each one paid out.

Over three years, VTILX compounded at -0.85% per year against +30.10% for XLK; over five years the annualized figures are -3.12% and +19.12% respectively.

Past performance does not guarantee future results.

Risk: Volatility and Drawdowns

XLK has been the more volatile fund, with annualized monthly volatility of 24.1% compared with 6.0% for VTILX. 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 -15.3% for VTILX and -34.0% 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 0.57. They move together some of the time, and apart the rest.

Fees and Cost Over Time

VTILX charges 0.07% per year while XLK charges 0.08%. On a $10,000 position that is $7 vs $8 annually, a gap of $1 per year that compounds over a long holding period. On income, VTILX currently yields 4.23% against 0.43% for XLK.

Structure and taxes

VTILX is a mutual fund and XLK is an ETF. A mutual fund prices once a day at net asset value and may carry a purchase minimum. An ETF trades through the day at whatever the market pays for it.

In a taxable account the difference that usually matters is distributions. An ETF can meet redemptions in kind, so it rarely has to sell holdings and rarely passes a capital gain to the people who held it; a mutual fund that sells holdings to meet redemptions can distribute a realised gain at year end to everyone still in the fund, whether or not they sold anything themselves. In a tax-deferred account that difference largely disappears. Both are descriptions of how the two wrappers work, not a recommendation.

Tax-loss harvesting works on either wrapper.

Holdings Overlap

XLK already in VTILX22.2%

At least 22.2% of XLK's money is in holdings VTILX also owns.

Stated as a floor: for VTILX, our book for it covers 7.1% of that fund, so a holding it does not list is one we cannot count as shared. The real figure is this or higher.

XLK and VTILX share little of their money.

The two holdings books were reported 283 days apart, VTILX as of Oct 31, 2025 and XLK as of Aug 10, 2026, so some of the difference between them is the time between the two reports rather than the funds.

2 positions in common, counted across the 1,459 positions we hold weights for in VTILX and 74 in XLK, against full books of 7,415 and 77.

Top Shared Holdings

StockWeight in VTILXWeight in XLKDifference
AAPLApple, Inc0.00%12.26%12.26%
MSFTMicrosoft Corp 4.100 Feb 06 370.00%9.91%9.91%

22.2% of XLK is already inside VTILX.

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

VTILXXLK

Free for up to 10 holdings. No account needed.

Frequently Asked Questions

Which is cheaper, VTILX or XLK?

VTILX has an expense ratio of 0.07% while XLK charges 0.08%. VTILX is the cheaper option, by $1 a year on a $10,000 investment.

Which is riskier, VTILX or XLK?

XLK has been the more volatile fund at 24.1% annualized versus 6.0% for VTILX. Worst drawdown: VTILX -15.3% vs XLK -34.0%.

Should I hold both VTILX and XLK?

VTILX and XLK have a monthly-return correlation of 0.57, 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 VTILX and XLK?

At least 22.2% of XLK's money is in holdings VTILX also owns. Our book for VTILX is partial, so the real figure is this or higher. They hold 2 positions in common, counted across the 1,459 positions we hold weights for in VTILX and 74 in XLK.

Which pays a higher dividend, VTILX or XLK?

VTILX yields 4.23% while XLK yields 0.43%, so VTILX currently pays the higher dividend yield.

Is it better to hold VTILX or XLK in a taxable account?

XLK is an ETF and VTILX is a mutual fund. An ETF can meet redemptions in kind, so it rarely distributes a capital gain to the people holding it. A mutual fund that sells holdings to meet redemptions can pass a realised gain to every holder at year end. In a tax-deferred account that difference largely disappears. This is information, not a recommendation.

Is XLK better than VTILX?

VTILX has a lower expense ratio. Which one suits a particular account depends on what it is for. This is information, not a recommendation.