VTV vs XLK
Vanguard Morningstar Value ETF vs State Street Technology Select Sector SPDR ETF
Quick Verdict
VTV has a lower expense ratio. XLK delivered stronger 1-year returns. VTV offers more diversification with 311 holdings.
Side-by-Side Comparison
| Metric | VTV | XLK | Winner |
|---|---|---|---|
| Expense Ratio | 0.03% | 0.08% | |
| AUM | $187.8B | $124.4B | |
| Dividend Yield | 1.85% | 0.45% | |
| Holdings | 311 | 77 | |
| YTD Return | +18.65% | +27.34% | |
| 1Y Return | +27.73% | +42.34% | |
| 3Y Return (annualized) | +19.75% | +30.61% | |
| 5Y Return (annualized) | +12.58% | +19.29% | |
| Volatility (annualized) | 14.5% | 23.2% | |
| Max Drawdown | -61.3% | -82.0% | |
| Fund Family | Vanguard (US) | SPDR State Street Global Advisors | |
| Category | Equity | Equity | |
| Inception | Jan 26, 2004 | Dec 16, 1998 |
VTV vs XLK Performance
Vanguard Morningstar Value ETF (VTV) is a ETF 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 VTV returned +27.73% while XLK returned +42.34%. Year to date, VTV is up 18.65% versus a gain of 27.34% for XLK.
Over three years, VTV compounded at +19.75% per year against +30.61% for XLK; over five years the annualized figures are +12.58% and +19.29% respectively. Across the full 23-year window we track, XLK has the edge at +9.37% annualized vs +7.62%. 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 14.5% for VTV. 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 -61.3% for VTV 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 0.72. They usually move together, but the gap leaves some room for diversification.
Fees and Cost Over Time
VTV 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, VTV currently yields 1.85% against 0.45% for XLK.
Holdings Overlap
VTV and XLK share 22 holdings out of 361 unique holdings combined, representing a 12.6% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Frequently Asked Questions
Which is cheaper, VTV or XLK?
VTV has an expense ratio of 0.03% while XLK charges 0.08%. VTV is the cheaper option. On a $10,000 investment, that is $5 per year of difference.
Which performed better, VTV or XLK?
Over the past year VTV returned +27.73% vs +42.34% for XLK, so XLK leads on 1-year performance. Over the longest common window we track (23 years), VTV annualized +7.62% vs +9.37% for XLK. Past performance does not guarantee future results.
Which is riskier, VTV or XLK?
XLK has been the more volatile fund at 23.2% annualized versus 14.5% for VTV. Worst drawdown: VTV -61.3% vs XLK -82.0%.
Should I hold both VTV and XLK?
VTV and XLK have a monthly-return correlation of 0.72, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between VTV and XLK?
VTV and XLK share 22 common holdings with a 12.6% weight overlap. Combined, they hold 361 unique securities.
Which pays a higher dividend, VTV or XLK?
VTV yields 1.85% while XLK yields 0.45%, so VTV currently pays the higher dividend yield.
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