Vanguard Information Technology ETF (VGT) 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 VGT returned +38.91% while XLK returned +41.65%. Year to date, VGT is up 26.85% versus a gain of 28.75% for XLK.

Over three years, VGT compounded at +30.70% per year against +30.14% for XLK; over five years the annualized figures are +18.88% and +19.97% respectively. Across the full 23-year window we track, VGT has the edge at +14.29% annualized vs +9.43%. Past performance does not guarantee future results.

XLK has been the more volatile fund, with annualized monthly volatility of 23.2% compared with 19.5% for VGT. 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 -54.8% for VGT 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 0.99. They move almost in lockstep, so holding both mostly duplicates the same exposure.

VGT charges 0.09% per year while XLK charges 0.08%. On a $10,000 position that is $9 vs $8 annually, a gap of $1 per year that compounds over a long holding period. On income, VGT currently yields 0.38% against 0.42% for XLK.