VYM vs XLK
Vanguard High Dividend Yield ETF vs State Street Technology Select Sector SPDR ETF
Which is better, VYM or XLK?
Large Cap Value against Large Cap Growth.
VYM has a lower expense ratio. XLK led over 1Y, 3Y, 5Y and the full window. VYM is less concentrated, with 26.1% of the fund in its ten largest positions against 61.2%.
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 | VYM | XLK |
|---|---|---|
| Expense Ratio | 0.04%Best | 0.08% |
| AUM | $81.6B | $119.7B |
| Dividend Yield | 2.22% | 0.43% |
| Holdings | 613 | 77 |
| YTD Return | +12.29% | +30.64%Best |
| 1Y Return | +16.61% | +39.30%Best |
| 3Y Return (annualized) | +17.42% | +31.27%Best |
| 5Y Return (annualized) | +12.12% | +20.23%Best |
| Volatility (annualized) | 14.6%Best | 19.4% |
| Max Drawdown | -58.8% | -53.6%Best |
| $10,000 over 5 years | $17,718 | $25,123Best |
| Top 10 Weight | 26.1%Best | 61.2% |
| Fund Family | Vanguard (US) | SPDR State Street Global Advisors |
| Category | Equity | Equity |
| Style | Large Cap Value | Large Cap Growth |
| Inception | Nov 10, 2006 | Dec 16, 1998 |
Volatility and max drawdown are measured over the window both funds cover: Nov 16, 2006 to Sep 17, 2026 (19.8 years).
VYM 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 19.8 years both funds cover.
VYM vs XLK Performance
Vanguard High Dividend Yield ETF (VYM) 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 VYM returned +16.61% while XLK returned +39.30%. Year to date, VYM is up 12.29% versus a gain of 30.64% for XLK.
Over three years, VYM compounded at +17.42% per year against +31.27% for XLK; over five years the annualized figures are +12.12% and +20.23% respectively. Across the full 20-year window we track, XLK has the edge at +15.22% annualized vs +6.87%.
Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
XLK has been the more volatile fund, with annualized monthly volatility of 19.4% compared with 14.6% for VYM. 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 -58.8% for VYM 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 0.71. They usually move together, but the gap leaves some room for diversification.
Fees and Cost Over Time
VYM charges 0.04% per year while XLK charges 0.08%. On a $10,000 position that is $4 vs $8 annually, a gap of $4 per year that compounds over a long holding period. On income, VYM currently yields 2.22% against 0.43% for XLK.
Holdings Overlap
15.8% of VYM's money is in holdings XLK also owns. 18.8% of XLK's money is in holdings VYM also owns.
XLK and VYM share little of their money.
20 positions in common, counted across the 557 positions we hold weights for in VYM and 74 in XLK, against full books of 613 and 77.
What only one of them owns
Our book lists 54 positions for XLK that do not appear in our book for VYM (81.3% of the fund), and 509 for VYM that do not appear in XLK (81.7%).
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 VYM | Weight in XLK | Difference |
|---|---|---|---|
| AVGOBroadcom Inc | 7.35% | 4.78% | 2.57% |
| CSCOCisco Systems Inc. - Ordinary Shares | 1.86% | 2.89% | 1.03% |
| TXNTexas Instrument Inc | 1.02% | 1.54% | 0.52% |
| ORCLOracle Corp - Common | 0.90% | 1.60% | 0.70% |
| IBMInternational Business Machines Corp. | 0.85% | 1.45% | 0.60% |
| ADIAnalog Devices, Inc. | 0.73% | 1.15% | 0.42% |
| QCOMQualcomm Inc. | 0.63% | 1.17% | 0.54% |
| DELLDell Technologies Inc | 0.50% | 0.82% | 0.32% |
| ACN:IEAccenture PLC Cl A | 0.41% | 0.77% | 0.36% |
| HPEHewlett Packard Enterprise Co | 0.26% | 0.45% | 0.19% |
You are not choosing between two funds in isolation.
Whichever of VYM 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, VYM or XLK?
VYM has an expense ratio of 0.04% while XLK charges 0.08%. VYM is the cheaper option, by $4 a year on a $10,000 investment.
Which performed better, VYM or XLK?
Over the past year VYM returned +16.61% vs +39.30% for XLK, so XLK leads on 1-year performance. Over the longest common window we track (20 years), VYM annualized +6.87% vs +15.22% for XLK. Past performance does not guarantee future results. This is information, not a recommendation.
Which is riskier, VYM or XLK?
XLK has been the more volatile fund at 19.4% annualized versus 14.6% for VYM. Worst drawdown: VYM -58.8% vs XLK -53.6%.
Should I hold both VYM and XLK?
VYM and XLK have a monthly-return correlation of 0.71, so their returns are far enough apart for the mix to behave differently from either one alone. This is information, not a recommendation.
What is the holdings overlap between VYM and XLK?
18.8% of XLK's money is in holdings VYM also owns. 18.8% of XLK's is in holdings VYM also owns. They hold 20 positions in common, counted across the 557 positions we hold weights for in VYM and 74 in XLK.
Which pays a higher dividend, VYM or XLK?
VYM yields 2.22% while XLK yields 0.43%, so VYM currently pays the higher dividend yield.
Is XLK better than VYM?
VYM has a lower expense ratio. XLK led over 1Y, 3Y, 5Y and the full window. VYM is less concentrated, with 26.1% of the fund in its ten largest positions against 61.2%. Which one suits a particular account depends on what it is for. This is information, not a recommendation.