VXF vs XLK
Vanguard Extended Market ETF vs State Street Technology Select Sector SPDR ETF
Quick Verdict
VXF has a lower expense ratio. XLK delivered stronger 1-year returns. VXF offers more diversification with 3,376 holdings.
Side-by-Side Comparison
| Metric | VXF | XLK | Winner |
|---|---|---|---|
| Expense Ratio | 0.05% | 0.08% | |
| AUM | $30.5B | $124.4B | |
| Dividend Yield | 1.03% | 0.45% | |
| Holdings | 3,376 | 77 | |
| YTD Return | +15.66% | +25.08% | |
| 1Y Return | +20.99% | +38.25% | |
| 3Y Return (annualized) | +19.89% | +29.63% | |
| 5Y Return (annualized) | +6.60% | +18.87% | |
| Volatility (annualized) | 18.7% | 23.2% | |
| Max Drawdown | -59.4% | -82.0% | |
| Fund Family | Vanguard (US) | SPDR State Street Global Advisors | |
| Category | Equity | Equity | |
| Inception | Dec 27, 2001 | Dec 16, 1998 |
VXF vs XLK Performance
Vanguard Extended Market ETF (VXF) 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 VXF returned +20.99% while XLK returned +38.25%. Year to date, VXF is up 15.66% versus a gain of 25.08% for XLK.
Over three years, VXF compounded at +19.89% per year against +29.63% for XLK; over five years the annualized figures are +6.60% and +18.87% respectively. Across the full 25-year window we track, XLK has the edge at +9.30% annualized vs +9.00%. 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 18.7% for VXF. 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 -59.4% for VXF 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 0.77. They usually move together, but the gap leaves some room for diversification.
Fees and Cost Over Time
VXF charges 0.05% per year while XLK charges 0.08%. On a $10,000 position that is $5 vs $8 annually, a gap of $3 per year that compounds over a long holding period. On income, VXF currently yields 1.03% against 0.45% for XLK.
Holdings Overlap
Frequently Asked Questions
Which is cheaper, VXF or XLK?
VXF has an expense ratio of 0.05% while XLK charges 0.08%. VXF is the cheaper option. On a $10,000 investment, that is $3 per year of difference.
Which performed better, VXF or XLK?
Over the past year VXF returned +20.99% vs +38.25% for XLK, so XLK leads on 1-year performance. Over the longest common window we track (25 years), VXF annualized +9.00% vs +9.30% for XLK. Past performance does not guarantee future results.
Which is riskier, VXF or XLK?
XLK has been the more volatile fund at 23.2% annualized versus 18.7% for VXF. Worst drawdown: VXF -59.4% vs XLK -82.0%.
Should I hold both VXF and XLK?
VXF and XLK have a monthly-return correlation of 0.77, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between VXF and XLK?
VXF and XLK share 2 common holdings with a 0.0% weight overlap. Combined, they hold 3367 unique securities.
Which pays a higher dividend, VXF or XLK?
VXF yields 1.03% while XLK yields 0.45%, so VXF currently pays the higher dividend yield.
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