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ETF Comparison

XLK vs VGT: S&P 500 Technology, or All-Cap US Tech?

A head-to-head of State Street Technology Select Sector SPDR ETF and Vanguard Information Technology ETF covering universe, fees, and payout.

Updated October 2, 2026

How these figures are calculated: methodology.

Best for

  • VGTInvestors who want all-cap US information technology, including mid- and small-cap names the S&P 500 tech sleeve omits.
  • XLKInvestors who want S&P 500 technology only — the large-cap Select Sector sleeve.

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

100% reinvested · ex-date convention. Period returns use this fixed assumption, independent of chart settings. YTD and 1Y are cumulative period returns; 3Y, 5Y, and 10Y are annualized. The shared Since-start window is annualized only when it covers at least one year.

VGT has lagged XLK over the trailing twelve months, posting a 37.02% total return against 41.12%. The picture flips over 10 years, though — VGT has compounded at 25.03% a year, ahead of XLK at 24.98%. 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.
SymbolYTD cumulative1Y cumulative3Y annualized5Y annualized10Y annualizedSince Jan 2004Volatility Sharpe Sortino Max drawdown
VGT36.25%37.02%35.55%21.10%25.03%15.33%24.6%1.061.52-27.2%
XLK38.97%41.12%34.94%22.29%24.98%15.27%25.0%1.021.47-25.7%

Total return with all distributions reinvested on the ex-dividend date (a modeling convention, not the cash-settlement date), split-adjusted, as of October 2, 2026. YTD and 1Y are cumulative period returns; 3Y, 5Y, and 10Y are annualized. The shared Since-start window is annualized only when it covers at least one year. “Since Jan 2004” measures every fund from January 30, 2004 — the start of shared available history — 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 indexMSCI US Investable Market Index/Information Technology 25/50Technology Select Sector Index
Last Close$128.32 as of October 2, 2026$199.81 as of October 2, 2026
Distribution rate0.46%0.44%
Trailing 12-month yield0.37%0.42%
Distribution Safety Score™ 9399
Safety-Adjusted Yield 0.43%0.44%
Expense ratio0.09%0.08%
AUM$155B$128B
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
Beta1.491.5
Last dividend$0.1465$0.221
Ex-dividend date09/23/202609/21/2026

Bottom lineChoose VGT if you want all-cap US information technology, including mid- and small-cap names the S&P 500 tech sleeve omits. Choose XLK if you want S&P 500 technology only — the large-cap Select Sector sleeve.

S&P 500 technology versus all-cap US tech

XLK holds the S&P 500 technology sleeve. VGT holds all-cap US information technology, including names the Select Sector book omits. Universe is the split.

VGTXLK
UniverseAll-cap US information technologyS&P 500 technology sleeve
Expense ratio0.09%0.08%
Distribution rate0.46%0.44%
Fund size$155B$128B
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Income calculator

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

Vanguard
ETFs116
Total AUM$4676B

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$2146B

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

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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.

VGT offers the higher yield at 0.46% vs 0.44% for XLK. 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 MSCI US Investable Market Index/Information Technology 25/50 while XLK is linked to Technology Select Sector Index, which means their performance drivers differ.

VGT is the larger fund by assets ($155B), but assets alone do not establish trading costs or liquidity.

Who should choose each?

Choose VGT

Vanguard Information Technology ETF

  • Want all-cap US tech — large, mid, and small names, not only S&P 500 technology.
  • Want broad equity exposure.

Choose XLK

State Street Technology Select Sector SPDR ETF

  • Want S&P 500 technology — the Select Sector large-cap sleeve, not the broader all-cap book.
  • Want broad equity exposure.
  • Want to keep costs low — a 0.08% expense ratio vs 0.09% for VGT.

Not sure? Use the income calculator and snapshot above to weigh these trade-offs against your own goals.

Deep dive

Yield & income

On a $10,000 investment, VGT would generate roughly $11.50 cash per distribution, while XLK would produce $11.00 cash per distribution, at current distribution rates. Both pay quarterly distributions.

VGT yield0.46%
XLK yield0.44%
Cash diff on $10K$0.50

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 MSCI US Investable Market Index/Information Technology 25/50 with an index approach, while XLK tracks Technology Select Sector Index with a technology approach. Beta is 1.49 for VGT and 1.5 for XLK — effectively similar market sensitivity.

VGT beta1.49
XLK beta1.5

Fund details

VGT is managed by Vanguard (launched 01/26/2004) with $155B in assets. XLK is managed by State Street (launched 12/16/1998) with $128B in assets.

VGT AUM$155B
XLK AUM$128B
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Frequently asked questions

What is the difference between XLK and VGT?

XLK (State Street Technology Select Sector SPDR ETF) is the S&P 500 technology Select Sector sleeve. VGT (Vanguard Information Technology ETF) is all-cap US information technology, including mid- and small-cap names XLK omits. Cost is 0.09% versus 0.08%. Distributions are 0.46% and 0.44% as of October 2026. Universe, not a one-date yield, is the split.

What is the current distribution rate for VGT and XLK?

VGT currently distributes 0.46% and XLK 0.44%, based on fund data updated October 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. VGT 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.

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 $11.50 cash per distribution ($46.00 annually). The same in XLK would produce about $11.00 cash per distribution ($44.00 annually).

Which has performed better historically, VGT or XLK?

VGT has lagged XLK over the trailing twelve months, posting a 37.02% total return against 41.12%. The picture flips over 10 years, though — VGT has compounded at 25.03% a year, ahead of XLK at 24.98%. 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 October 3, 2026.

Overview

Both VGT and XLK are broad technology ETFs that track U.S. tech stocks through passive index strategies, but they cover different slices of the market. VGT tracks the MSCI U.S. Investable Market index and includes large, mid, and small-cap tech companies across software, hardware, and semiconductors. XLK tracks the S&P 500's Technology Select Sector and holds only the large-cap tech names in that index. The key distinction is market-cap range: VGT casts a wider net to include mid and small-cap exposure, while XLK focuses exclusively on S&P 500 constituents.

How they differ

The most significant difference is scope. VGT includes mid and small-cap tech companies alongside large-cap names, while XLK holds only large-cap tech stocks from the S&P 500. This means their holdings overlap substantially but VGT captures a broader slice of the tech sector by market capitalization.

On fees and size, XLK has a slightly lower expense ratio at 0.08% versus 0.09%, a difference of 0.01% basis points. VGT has a larger asset base at $155B compared to XLK's $128B. Both pay minimal distributions—0.46% and 0.44% respectively—since tech stocks tend to reinvest earnings rather than pay dividends.

Beta tells another story. VGT carries a 1.49 beta versus XLK's 1.5, meaning VGT's broader market-cap exposure amplifies moves in either direction more aggressively than XLK's large-cap-only approach. XLK, established in 12/16/1998, is older than VGT (01/26/2004), though both are mature, widely traded funds.

Who each is best for

  • VGT: Fits investors seeking maximum tech sector breadth across market capitalizations and comfortable accepting higher volatility in exchange for exposure to mid and small-cap tech companies.
  • XLK: Fits investors preferring large-cap tech stability with the lowest possible cost, and who view the S&P 500's constituent selection as their preferred tech screen.

Key risks to know

  • Large-cap concentration within tech. Both funds concentrate heavily in mega-cap names like Microsoft, Apple, Nvidia, and Broadcom. Their holdings likely overlap substantially; verify the degree of overlap if building a tech allocation, since single-name concentration risk remains a concern even in a sector fund.
  • Higher beta and volatility. VGT's 1.49 beta means it amplifies both gains and losses relative to the broad market more sharply than XLK's 1.5 beta. Tech sector swings on interest-rate expectations, regulatory risk, and AI sentiment can drive significant moves within months.
  • Cyclical earnings and valuation sensitivity. Tech stocks historically trade on forward earnings growth and multiples. Recessions, margin pressure, or downturns in smartphone, cloud, or semiconductor demand can drive significant drawdowns. The sector's low dividend yield offers little cushion in downturns.
  • Sector concentration risk. Both funds concentrate exclusively in technology. An overweighting of tech in a broader portfolio amplifies sector-specific risks—software licensing cycles, semiconductor supply disruption, AI competition—relative to holding a broader market index.

Bottom line

If you want maximum tech exposure across the market-cap spectrum and can tolerate higher volatility, VGT's broader reach and larger asset base provide wider company coverage. If you prefer large-cap stability with the lowest expense ratio and are comfortable limiting exposure to S&P 500 tech names, XLK achieves that with 0.01% basis points lower costs and lower beta. Past performance does not guarantee future results, and either fund's returns depend on tech sector fundamentals, valuation multiples, and macroeconomic conditions beyond the funds' control.

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

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

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These comparisons follow the Dividend Vision methodology.