VXF vs XLK
Vanguard Extended Market ETF vs State Street Technology Select Sector SPDR ETF
Which is better, VXF or XLK?
Mid Cap Blend against Large Cap Growth.
VXF has a lower expense ratio. XLK led over 1Y, 3Y, 5Y and the full window. VXF is less concentrated, with 7.4% of the fund in its ten largest positions against 64.1%.
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 | VXF | XLK |
|---|---|---|
| Expense Ratio | 0.05%Best | 0.08% |
| AUM | $30.2B | $109.6B |
| Dividend Yield | 1.05% | 0.47% |
| Holdings | 3,377 | 152 |
| YTD Return | +11.57% | +21.27%Best |
| 1Y Return | +12.71% | +19.62%Best |
| 3Y Return (annualized) | +20.28% | +25.85%Best |
| 5Y Return (annualized) | +4.77% | +16.97%Best |
| Volatility (annualized) | 18.6%Best | 20.4% |
| Max Drawdown | -59.4% | -55.2%Best |
| $10,000 over 5 years | $12,624 | $21,896Best |
| Top 10 Weight | 7.4%Best | 64.1% |
| Fund Family | Vanguard (US) | State Street Investment Management |
| Category | Equity | Equity |
| Style | Mid Cap Blend | Large Cap Growth |
| Inception | Dec 27, 2001 | Dec 16, 1998 |
Volatility and max drawdown are measured over the window both funds cover: Jan 4, 2002 to Nov 11, 2026 (24.9 years).
VXF 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 covers the 24.9 years both funds cover.
VXF vs XLK Performance
Vanguard Extended Market ETF (VXF) is an ETF from Vanguard (US) and State Street Technology Select Sector SPDR ETF (XLK) is an ETF from State Street Investment Management. Over the past year VXF returned +12.71% while XLK returned +19.62%. Year to date, VXF is up 11.57% versus a gain of 21.27% for XLK.
Over three years, VXF compounded at +20.28% per year against +25.85% for XLK; over five years the annualized figures are +4.77% and +16.97% respectively. Across the full 25-year window we track, XLK has the edge at +11.23% annualized vs +8.76%.
Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
XLK has been the more volatile fund, with annualized monthly volatility of 20.4% compared with 18.6% 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 -55.2% 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 0.77. 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 1.05% against 0.47% for XLK.
Holdings Overlap
0.3% of VXF's money is in holdings XLK also owns. 0.3% of XLK's money is in holdings VXF also owns.
We cannot see either book well enough to say how much of this pair is duplicated.
1 positions in common, counted across the 3,267 positions we hold weights for in VXF and 74 in XLK, against full books of 3,377 and 152.
What only one of them owns
Our book lists 72 positions for XLK that do not appear in our book for VXF (98.9% of the fund), and 1,734 for VXF that do not appear in XLK (93.3%).
Some of those will be the same company recorded under a different code in one of the two books, so the real difference in what you would own is no larger than this and may be smaller. We do not name the individual positions here for that reason.
Top Shared Holdings
| Stock | Weight in VXF | Weight in XLK | Difference |
|---|---|---|---|
| PSTGPure Storage Inc | 0.35% | 0.26% | 0.09% |
You are not choosing between two funds in isolation.
Whichever of VXF 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, VXF or XLK?
VXF has an expense ratio of 0.05% while XLK charges 0.08%. VXF is the cheaper option, by $3 a year on a $10,000 investment.
Which performed better, VXF or XLK?
Over the past year VXF returned +12.71% vs +19.62% for XLK, so XLK leads on 1-year performance. Over the longest common window we track (25 years), VXF annualized +8.76% vs +11.23% for XLK. Past performance does not guarantee future results. This is information, not a recommendation.
Which is riskier, VXF or XLK?
XLK has been the more volatile fund at 20.4% annualized versus 18.6% for VXF. Worst drawdown: VXF -59.4% vs XLK -55.2%.
Should I hold both VXF and XLK?
VXF and XLK have a monthly-return correlation of 0.77, 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, VXF or XLK?
VXF yields 1.05% while XLK yields 0.47%, so VXF currently pays the higher dividend yield.
Is XLK better than VXF?
VXF has a lower expense ratio. XLK led over 1Y, 3Y, 5Y and the full window. VXF is less concentrated, with 7.4% of the fund in its ten largest positions against 64.1%. Which one suits a particular account depends on what it is for. This is information, not a recommendation.