VTI vs XLK

Quick Verdict

VTI has a lower expense ratio. XLK delivered stronger 1-year returns. VTI offers more diversification with 2783 holdings.

Lower Fees: VTIHigher Returns: XLKMore Diversified: VTI

Side-by-Side Comparison

MetricVTIXLKWinner
Expense Ratio0.03%0.08%
AUM$663.5B$114.1B
Dividend Yield1.07%0.42%
Holdings3,54376
YTD Return+13.39%+28.75%
1Y Return+23.21%+41.65%
3Y Return (annualized)+20.65%+30.14%
5Y Return (annualized)+12.18%+19.97%
Volatility (annualized)15.3%23.2%
Max Drawdown-56.6%-82.0%
Fund FamilyVanguard (US)SPDR State Street Global Advisors
CategoryEquityEquity
InceptionMay 24, 2001Dec 16, 1998

VTI vs XLK Performance

Vanguard Total Stock Market ETF (VTI) 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 VTI returned +23.21% while XLK returned +41.65%. Year to date, VTI is up 13.39% versus a gain of 28.75% for XLK.

Over three years, VTI compounded at +20.65% per year against +30.14% for XLK; over five years the annualized figures are +12.18% and +19.97% respectively. Across the full 25-year window we track, XLK has the edge at +9.43% annualized vs +8.11%. 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 15.3% for VTI. 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 -56.6% for VTI 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 0.87. They usually move together, but the gap leaves some room for diversification.

Fees and Cost Over Time

VTI charges 0.03% per year while XLK charges 0.08%. On a $10,000 position that is $3 vs $8 annually, a gap of $5 per year that compounds over a long holding period. On income, VTI currently yields 1.07% against 0.42% for XLK.

Holdings Overlap

32.7%overlap

VTI and XLK share 66 holdings out of 2792 unique holdings combined, representing a 32.7% weight overlap.

Moderate overlap means holding both could provide meaningful diversification benefits.

Top Shared Holdings

StockWeight in VTIWeight in XLKDifference
NVDA6.32%12.84%6.52%
AAPL5.84%12.45%6.61%
MSFT3.81%7.79%3.98%
AVGOProProPro
AMDProProPro
MUProProPro
INTCProProPro
AMATProProPro
LRCXProProPro
CSCOProProPro
See all 10 holdings VTI shares with XLK
Exact weights in each fund and the difference, for every overlapping position.
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Frequently Asked Questions

Which is cheaper, VTI or XLK?

VTI has an expense ratio of 0.03% while XLK charges 0.08%. VTI is the cheaper option. On a $10,000 investment, that is $5 per year of difference.

Which performed better, VTI or XLK?

Over the past year VTI returned +23.21% vs +41.65% for XLK, so XLK leads on 1-year performance. Over the longest common window we track (25 years), VTI annualized +8.11% vs +9.43% for XLK. Past performance does not guarantee future results.

Which is riskier, VTI or XLK?

XLK has been the more volatile fund at 23.2% annualized versus 15.3% for VTI. Worst drawdown: VTI -56.6% vs XLK -82.0%.

Should I hold both VTI and XLK?

VTI and XLK have a monthly-return correlation of 0.87, so combining them can provide real diversification depending on your allocation goals.

What is the holdings overlap between VTI and XLK?

VTI and XLK share 66 common holdings with a 32.7% weight overlap. Combined, they hold 2792 unique securities.

Which pays a higher dividend, VTI or XLK?

VTI yields 1.07% while XLK yields 0.42%, so VTI currently pays the higher dividend yield.

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