VXUS vs XLK

Quick Verdict

VXUS has a lower expense ratio. XLK delivered stronger 1-year returns. VXUS offers more diversification with 7861 holdings.

Lower Fees: VXUSHigher Returns: XLKMore Diversified: VXUS

Side-by-Side Comparison

MetricVXUSXLKWinner
Expense Ratio0.05%0.08%
AUM$156.5B$114.1B
Dividend Yield2.60%0.42%
Holdings8,74776
YTD Return+14.19%+29.27%
1Y Return+27.38%+41.65%
3Y Return (annualized)+19.53%+30.91%
5Y Return (annualized)+9.03%+20.32%
Volatility (annualized)15.1%23.2%
Max Drawdown-39.9%-82.0%
Fund FamilyVanguard (US)SPDR State Street Global Advisors
CategoryEquityEquity
InceptionJan 26, 2011Dec 16, 1998

VXUS vs XLK Performance

Vanguard Total International Stock ETF (VXUS) 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 VXUS returned +27.38% while XLK returned +41.65%. Year to date, VXUS is up 14.19% versus a gain of 29.27% for XLK.

Over three years, VXUS compounded at +19.53% per year against +30.91% for XLK; over five years the annualized figures are +9.03% and +20.32% respectively. Across the full 16-year window we track, XLK has the edge at +9.44% annualized vs +4.83%. 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 15.1% for VXUS. 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 -39.9% for VXUS 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 0.69. They move independently enough that combining them can meaningfully diversify a portfolio.

Fees and Cost Over Time

VXUS 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, VXUS currently yields 2.60% against 0.42% for XLK.

Holdings Overlap

0.0%overlap

VXUS and XLK share 1 holdings out of 7935 unique holdings combined, representing a 0.0% weight overlap.

Moderate overlap means holding both could provide meaningful diversification benefits.

Top Shared Holdings

StockWeight in VXUSWeight in XLKDifference
ORCL0.00%1.61%1.61%

Frequently Asked Questions

Which is cheaper, VXUS or XLK?

VXUS has an expense ratio of 0.05% while XLK charges 0.08%. VXUS is the cheaper option. On a $10,000 investment, that is $3 per year of difference.

Which performed better, VXUS or XLK?

Over the past year VXUS returned +27.38% vs +41.65% for XLK, so XLK leads on 1-year performance. Over the longest common window we track (16 years), VXUS annualized +4.83% vs +9.44% for XLK. Past performance does not guarantee future results.

Which is riskier, VXUS or XLK?

XLK has been the more volatile fund at 23.2% annualized versus 15.1% for VXUS. Worst drawdown: VXUS -39.9% vs XLK -82.0%.

Should I hold both VXUS and XLK?

VXUS and XLK have a monthly-return correlation of 0.69, so combining them can provide real diversification depending on your allocation goals.

What is the holdings overlap between VXUS and XLK?

VXUS and XLK share 1 common holdings with a 0.0% weight overlap. Combined, they hold 7935 unique securities.

Which pays a higher dividend, VXUS or XLK?

VXUS yields 2.60% while XLK yields 0.42%, so VXUS currently pays the higher dividend yield.

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