VWO vs XLK
Vanguard FTSE Emerging Markets ETF vs State Street Technology Select Sector SPDR ETF
Which is better, VWO or XLK?
Large Cap Blend against Large Cap Growth.
VWO 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 | VWO | XLK |
|---|---|---|
| Expense Ratio | 0.06%Best | 0.08% |
| AUM | $122.0B | $119.7B |
| Dividend Yield | 2.29% | 0.43% |
| Holdings | 6,334 | 77 |
| YTD Return | +7.94% | +27.64%Best |
| 1Y Return | +12.87% | +35.16%Best |
| 3Y Return (annualized) | +17.05% | +30.32%Best |
| 5Y Return (annualized) | +5.81% | +19.31%Best |
| Volatility (annualized) | 20.1% | 19.0%Best |
| Max Drawdown | -68.3% | -53.6%Best |
| $10,000 over 5 years | $13,263 | $24,176Best |
| Fund Family | Vanguard (US) | SPDR State Street Global Advisors |
| Category | Equity | Equity |
| Style | Large Cap Blend | Large Cap Growth |
| Inception | Mar 4, 2005 | Dec 16, 1998 |
Not shown on this pair: Top 10 Weight.
Volatility and max drawdown are measured over the window both funds cover: Mar 10, 2005 to Sep 15, 2026 (21.5 years).
VWO 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.
VWO vs XLK Performance
Vanguard FTSE Emerging Markets ETF (VWO) 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 VWO returned +12.87% while XLK returned +35.16%. Year to date, VWO is up 7.94% versus a gain of 27.64% for XLK.
Over three years, VWO compounded at +17.05% per year against +30.32% for XLK; over five years the annualized figures are +5.81% and +19.31% respectively. Across the full 22-year window we track, XLK has the edge at +14.67% annualized vs +4.86%.
Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
VWO has been the more volatile fund, with annualized monthly volatility of 20.1% compared with 19.0% for XLK. 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 -68.3% for VWO 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 0.64. They move together some of the time, and apart the rest.
Fees and Cost Over Time
VWO charges 0.06% per year while XLK charges 0.08%. On a $10,000 position that is $6 vs $8 annually, a gap of $2 per year that compounds over a long holding period. On income, VWO currently yields 2.29% against 0.43% for XLK.
Holdings Overlap
We hold position weights for 4,688 holdings in VWO and 74 in XLK, totalling 89.2% 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 4,688 positions we hold weights for in VWO and 74 in XLK, against full books of 6,334 and 77.
You are not choosing between two funds in isolation.
Whichever of VWO 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, VWO or XLK?
VWO has an expense ratio of 0.06% while XLK charges 0.08%. VWO is the cheaper option, by $2 a year on a $10,000 investment.
Which performed better, VWO or XLK?
Over the past year VWO returned +12.87% vs +35.16% for XLK, so XLK leads on 1-year performance. Over the longest common window we track (22 years), VWO annualized +4.86% vs +14.67% for XLK. Past performance does not guarantee future results. This is information, not a recommendation.
Which is riskier, VWO or XLK?
VWO has been the more volatile fund at 20.1% annualized versus 19.0% for XLK. Worst drawdown: VWO -68.3% vs XLK -53.6%.
Should I hold both VWO and XLK?
VWO and XLK have a monthly-return correlation of 0.64, 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, VWO or XLK?
VWO yields 2.29% while XLK yields 0.43%, so VWO currently pays the higher dividend yield.
Is XLK better than VWO?
VWO 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.