DV
Dividend Vision

ETF Comparison

VGT vs XLK: Which Is the Better Pick in 2026?

A head-to-head comparison of Vanguard Information Technology ETF and State Street Technology Select Sector SPDR ETF covering yield, cost, risk, and income potential.

Data updated September 4, 2026

Best for

  • VGTInvestors who want broad equity exposure.
  • XLKInvestors who want broad equity exposure.

Jump to the side-by-side numbers

Visual comparison

Key metrics

Projected income on $10K

Projections assume the current yield and share price remain constant. Actual results will vary.

Total returns

VGT has lagged XLK over the trailing twelve months, posting a 40.63% total return against 44.07%. The picture flips over 10 years, though — VGT has compounded at 24.44% a year, ahead of XLK at 24.23%. Figures are total returns: price change plus every distribution reinvested.

Total return and risk statistics by fund. Each row is one fund; each column is one period or statistic.
SymbolYTD1Y3Y5Y10YSince Jan 2004Volatility Sharpe Sortino Max drawdown
VGT28.62%40.63%30.19%18.48%24.44%15.09%24.6%0.891.27-27.2%
XLK30.10%44.07%29.30%19.52%24.23%14.99%25.0%0.851.21-25.7%

Total return with all distributions reinvested on the ex-dividend date (a modeling convention, not the cash-settlement date), split-adjusted, as of September 4, 2026. YTD and 1Y are cumulative; windows of one year or longer are annualized. “Since Jan 2004” measures every fund from January 30, 2004 — the youngest fund's first trading day — so all funds share one comparison window. Volatility is the annualized standard deviation of daily total returns over the trailing 3 years. Sharpe and Sortino divide the annualized return in excess of the risk-free rate by, respectively, that volatility and the downside deviation (both over the trailing 3 years) — higher is better. Max drawdown is the largest peak-to-trough total-return decline over the same window — shallower is better.

Side-by-side snapshot

Side-by-side snapshot. Each row is one metric; each column is one fund.
MetricVGTXLK
Full nameVanguard Information Technology ETFState Street Technology Select Sector SPDR ETF
IssuerVanguardState Street
Underlying indexperformance of the MSCI US Investable Market IndexTechnology Select Sector Index
Last Close$121.27 as of September 4, 2026$187.28 as of September 4, 2026
Distribution rate0.46%0.49%
Distribution Safety Score™ 9399
Safety-Adjusted Yield 0.43%0.49%
Expense ratio0.09%0.08%
AUM$146B$120B
Distribution frequencyQuarterlyQuarterly
ObjectiveSeeks to track the performance of the MSCI US Investable Market Index/Information Technology 25/50, an index made up of stocks of large, mid-size, and small U.S. companies within the information technology sector, including technology software and services, hardware and equipment, and semiconductor manufacturers.Track the Technology Select Sector Index, providing exposure to the information technology constituents of the S&P 500.
Asset classEquityEquity
Inception date01/26/200412/16/1998
Beta1.471.47
Last dividend$0.1384$0.228
Ex-dividend date06/24/202606/22/2026

Bottom lineVGT and XLK are both for investors who want broad equity exposure — so strategy isn't the deciding factor here. Fees and payouts are close too, so it comes down to which your broker offers commission-free and any share-price or tax-lot preference.

Model this comparison:
Compare in my portfolio Forecast income Save to watchlist

Income calculator

See how much monthly income a hypothetical investment would generate in each ETF at current yields.

Vanguard
ETFs116
Total AUM$4650B

ETFs and AUM reflect what Dividend Vision tracks — the issuer's full lineup may be larger.

Vanguard is one of the largest and most established ETF issuers, known for low-cost, broadly diversified fund offerings built on passive indexing principles. Their lineup spans multiple asset classes and strategies, including core equity and bond index funds, dividend-focused portfolios, ESG-screened options, factor-based strategies, sector exposure, target-date retirement funds, and international investments across developed and emerging markets. The platform is characterized by its emphasis on accessibility and cost efficiency across a comprehensive range of fund families, serving both individual investors seeking broad market exposure and those pursuing specific income, sustainability, or thematic objectives.

See our curated list of related YouTube videos on VGT.

See all Vanguard ETFs
State Street
ETFs179
Total AUM$2124B

ETFs and AUM reflect what Dividend Vision tracks — the issuer's full lineup may be larger.

State Street Global Advisors (SSGA) is one of the largest ETF providers globally, known for its flagship SPDR suite of exchange-traded products that serve both institutional and retail investors across a broad range of asset classes. Their 88-fund lineup spans diverse strategies including sector exposure (Select Sector SPDR), income generation (Income and Select Sector SPDR Premium Income families), commodities (including the widely-held GLD gold ETF), bonds, ESG-focused investments, and thematic allocations, with popular tickers like DIA (Diamonds Trust), FEZ (Eurozone exposure), and JNK (high-yield bonds) among their most recognized funds. The issuer is characterized by its comprehensive coverage across multiple market segments and its emphasis on both traditional index-based products and specialized strategies like covered call income funds and factor-based investing.

See our curated list of related YouTube videos on XLK.

See all State Street ETFs

Want to go deeper?

Add these ETFs to a sample portfolio and forecast your dividend income over 5+ years — free to start, no credit card.

Compare in my portfolio Forecast income Save to watchlist

Quick verdict

VGT (Vanguard Information Technology ETF) and XLK (State Street Technology Select Sector SPDR ETF) are both quarterly-pay dividend ETFs, but they take different approaches.

XLK offers the higher yield at 0.49% vs 0.46% for VGT. A higher yield means more current income per dollar invested, though it may come with different risk characteristics.

XLK is cheaper with an expense ratio of 0.08% compared to 0.09%.

They have different reference exposures: VGT is linked to performance of the MSCI US Investable Market Index while XLK is linked to Technology Select Sector Index, which means their performance drivers differ.

VGT is the larger fund by assets ($146B), but assets alone do not establish trading costs or liquidity.

Deep dive

Yield & income

On a $10,000 investment, VGT would generate roughly $3.83/month, while XLK would produce $4.08/month, at current distribution rates. Both pay quarterly distributions.

VGT yield0.46%
XLK yield0.49%
Monthly diff on $10K$0.25

Cost & efficiency

Over 10 years on $10,000, VGT would cost approximately $90 in fees vs $80 for XLK (simplified, not compounded). The $10.00 difference may be offset by yield or performance.

VGT ER0.09%
XLK ER0.08%

Strategy & risk

VGT tracks performance of the MSCI US Investable Market Index, while XLK tracks Technology Select Sector Index with a technology approach.

VGT beta1.47
XLK beta1.47

Fund details

VGT is managed by Vanguard (launched 01/26/2004) with $146B in assets. XLK is managed by State Street (launched 12/16/1998) with $120B in assets.

VGT AUM$146B
XLK AUM$120B
Ready to act?
Open in Comparator Model in portfolio See pricing

Enjoyed this page?

Do us a favor — if you found this comparison useful, please share it with a friend researching dividend ETFs.

Frequently asked questions

What is the current distribution rate for VGT and XLK?

VGT currently distributes 0.46% and XLK 0.49%, based on fund data updated September 2026. Distribution rate moves with both the payout and the share price, so check the as-of date before relying on either figure.

Is VGT or XLK better for dividend income?

It depends on your goals. XLK currently offers the higher distribution yield, which means more income per dollar invested. However, a lower-yield fund may offer better total return or lower volatility. Consider your time horizon and risk tolerance.

What is the difference between VGT and XLK?

VGT (Vanguard Information Technology ETF) tracks performance of the MSCI US Investable Market Index, while XLK (State Street Technology Select Sector SPDR ETF) tracks Technology Select Sector Index with a technology approach. They are issued by Vanguard and State Street respectively.

Can I hold both VGT and XLK?

Yes — nothing prevents holding both. Whether the combination actually diversifies depends on how much the underlying exposures overlap, which isn't fully measurable from the data on this page; review each security's holdings, sector, and strategy before treating them as complementary.

Is VGT or XLK safer?

By Dividend Vision's Distribution Safety Score — a rules-based 0–100 estimate of how resilient a distribution looks, where higher is safer — XLK scores 99, VGT scores 93, so XLK's payout currently looks the more resilient of the two. No score makes an investment risk-free — treat this as a screening signal, not a guarantee.

Which has lower fees, VGT or XLK?

VGT has an expense ratio of 0.09% while XLK charges 0.08%. Lower fees mean more of your investment returns stay in your pocket over time.

How much income does $10,000 in VGT vs XLK generate?

At current rates, $10,000 in VGT would generate roughly $3.83 per month ($46.00 annually). The same in XLK would produce about $4.08 per month ($49.00 annually).

Which has performed better historically, VGT or XLK?

VGT has lagged XLK over the trailing twelve months, posting a 40.63% total return against 44.07%. The picture flips over 10 years, though — VGT has compounded at 24.44% a year, ahead of XLK at 24.23%. Figures are total returns: price change plus every distribution reinvested. Past performance does not guarantee future results.

More comparisons to explore

VGT vs XLK — at a glance

Generated September 5, 2026.

Overview

VGT and XLK are both sector-focused technology ETFs, but they cast different nets. VGT tracks a broad U.S. technology universe across the entire market cap spectrum—large, mid, and small companies—using a Vanguard-managed basket approach. XLK narrows that to only the technology stocks within the S&P 500, meaning it holds larger, more established names. The result is a meaningful difference in breadth and company size exposure, despite both funds targeting the same industry.

How they differ

The biggest difference is composition. VGT covers the full MSCI US Investable Market within technology, giving you exposure to mid-cap and smaller tech names that XLK doesn't include; XLK is limited to S&P 500 technology constituents, so it skews toward mega-cap and large-cap names. Both distribute 0.46% and 0.49% respectively on a quarterly basis, so income yield is nearly identical. XLK has a slightly lower expense ratio at 0.08% versus 0.09%, a 1-basis-point difference that matters more at larger portfolio sizes. VGT has grown to $146B in assets, while XLK sits at $120B, and both exhibit the same 1.47 beta, reflecting comparable sensitivity to market moves despite their compositional differences.

Who each is best for

VGT: Fits investors who want broad exposure across the entire U.S. technology sector, including mid-cap and smaller growth companies that may offer more upside potential but come with added volatility.

XLK: Designed for investors seeking a more concentrated, mega-cap technology portfolio anchored to the largest established tech names in the market, with slightly lower costs and a longer track record.

Key risks to know

  • Market-cap and volatility mismatch. VGT's inclusion of mid and small-cap technology stocks makes it more volatile and sensitive to growth-cycle downturns than XLK's large-cap concentration. When investors flee growth, the smaller holdings in VGT tend to suffer more.
  • Overlap risk. Both funds hold the largest U.S. tech names, so if your broader portfolio already includes mega-cap tech exposure, adding either fund amplifies that concentration.
  • Sector concentration in both. Technology is a cyclical sector whose earnings and valuations are sensitive to interest rates, economic growth, and shifts in spending. Both funds move together in a sector downturn.
  • VGT's broader universe complexity. The wider range of holdings in VGT, especially mid and small-cap names, introduces idiosyncratic risk on individual positions; XLK's S&P 500 limitation means most constituents are liquid, widely analyzed, and less prone to sudden repricing.

Bottom line

If you want maximum breadth within U.S. technology and are comfortable with higher volatility from smaller names, VGT offers that exposure at a reasonable cost. If you prefer the stability of large-cap tech names with a minor expense advantage, XLK delivers that focus. Both carry substantial sector concentration risk, so neither should be thought of as a complete technology allocation—verify how either fits your broader holdings and risk tolerance.

AI-generated analysis for educational purposes only. Verify important details independently; past performance does not guarantee future results.

Learn the method

The metrics behind this comparison, explained in the Academy.

How covered-call funds work How to read a fund's stats The covered-call opportunity cost

Still deciding? Compare them against your own portfolio

See how each ETF fits alongside your real holdings — forecast future income, analyze overlap, and gauge risk. Start a free 7-day Dividend Vision trial and make the call with your full portfolio in view.

Start Free Open in Comparator Browse Screener