VYM vs XLKI

VYM vs XLKI
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Quick Verdict

VYM has a lower expense ratio. XLKI delivered stronger 1-year returns. VYM offers more diversification with 616 holdings.

Lower Fees: VYMHigher Returns: XLKIMore Diversified: VYM

Side-by-Side Comparison

MetricVYMXLKIWinner
Expense Ratio0.04%0.35%
AUM$81.6B$15M
Dividend Yield2.24%17.95%
Holdings6165
YTD Return+15.34%+15.56%
1Y Return+23.24%+28.39%
3Y Return (annualized)+19.22%-
5Y Return (annualized)+12.21%-
Volatility (annualized)14.6%16.9%
Max Drawdown-58.8%-11.2%
Fund FamilyVanguard (US)State Street Investment Management
CategoryEquityEquity
InceptionNov 10, 2006Jul 29, 2025

VYM vs XLKI Performance

Vanguard High Dividend Yield ETF (VYM) is a ETF from Vanguard (US) and State Street Technology Select Sector SPDR Premium Income ETF (XLKI) is a ETF from State Street Investment Management. Over the past year VYM returned +23.24% while XLKI returned +28.39%. Year to date, VYM is up 15.34% versus a gain of 15.56% for XLKI.

Risk: Volatility and Drawdowns

XLKI has been the more volatile fund, with annualized monthly volatility of 16.9% 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 -11.2% for XLKI. 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 0.33. They move independently enough that combining them can meaningfully diversify a portfolio.

Fees and Cost Over Time

VYM charges 0.04% per year while XLKI charges 0.35%. On a $10,000 position that is $4 vs $35 annually, a gap of $31 per year that compounds over a long holding period. On income, VYM currently yields 2.24% against 17.95% for XLKI.

Holdings Overlap

0.0%overlap

VYM and XLKI share 0 holdings out of 605 unique holdings combined, representing a 0.0% weight overlap.

Moderate overlap means holding both could provide meaningful diversification benefits.

Frequently Asked Questions

Which is cheaper, VYM or XLKI?

VYM has an expense ratio of 0.04% while XLKI charges 0.35%. VYM is the cheaper option. On a $10,000 investment, that is $31 per year of difference.

Which performed better, VYM or XLKI?

Over the past year VYM returned +23.24% vs +28.39% for XLKI, so XLKI leads on 1-year performance. Over the longest common window we track (1 years), VYM annualized +7.04% vs +25.73% for XLKI. Past performance does not guarantee future results.

Which is riskier, VYM or XLKI?

XLKI has been the more volatile fund at 16.9% annualized versus 14.6% for VYM. Worst drawdown: VYM -58.8% vs XLKI -11.2%.

Should I hold both VYM and XLKI?

VYM and XLKI have a monthly-return correlation of 0.33, so combining them can provide real diversification depending on your allocation goals.

What is the holdings overlap between VYM and XLKI?

VYM and XLKI share 0 common holdings with a 0.0% weight overlap. Combined, they hold 605 unique securities.

Which pays a higher dividend, VYM or XLKI?

VYM yields 2.24% while XLKI yields 17.95%, so XLKI currently pays the higher dividend yield.

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