ETF Comparison

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

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

Data updated May 20, 2026

Vanguard

ETFs48

Total AUM$11763.3B

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

Vanguard is known for offering low-cost, passively managed ETFs that serve as core portfolio holdings for individual investors. Their fund lineup emphasizes core equity exposure and dividend income strategies, with offerings spanning domestic growth (VGT, VUG), broad market indices (VOO), dividend-focused portfolios (VYM, VIG), and international high dividend yield opportunities (VONG, VYMI). The issuer's seven funds are characterized by expense ratios among the industry's lowest and a focus on long-term, buy-and-hold investors seeking diversified equity exposure.

See our curated list of related YouTube videos on VGT.

See all Vanguard ETFs

State Street

ETFs42

Total AUM$1750.5B

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

State Street is one of the largest ETF providers globally and is known for its SPDR family of funds, which pioneered the modern ETF industry. The company's 17-fund lineup spans multiple strategies including broad market exposure (SPLG), dividend-focused income products (SPYD, SPYM), sector-specific funds (the Select Sector SPDR series), and specialized strategies like covered call income (Premium Income series) and portfolio construction tools (SPDR Portfolio). Notable for its extensive Select Sector SPDR offerings that track individual S&P 500 sectors and its focus on both traditional index investing and income-generating strategies, State Street serves investors across a wide range of investment objectives from core holdings to tactical income plays.

See our curated list of related YouTube videos on XLK.

See all State Street ETFs

Side-by-side snapshot

	VGT	XLK
Full name	Vanguard Information Technology ETF	Technology Select Sector SPDR Fund
Issuer	Vanguard	State Street
Last Close	$112.13 as of May 20, 2026	$174.36 as of May 20, 2026
Distribution yield	0.33%	0.43%
Expense ratio	0.09%	0.08%
AUM	$146.5B	$103.3B
Distribution frequency	Quarterly	Quarterly
Underlying index	Basket (Vanguard Information Technology ETF holdings)	Technology Select Sector Index
Objective	Seeks 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 class	Equity	Equity
Inception date	01/26/2004	12/16/1998
Beta	1.29	1.26
Last dividend	$0.09	$0.17
Ex-dividend date	03/24/2026	03/23/2026

Income calculator

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

Want to go deeper?

Add these ETFs to a sample portfolio and forecast your dividend income over 5+ years — no signup required.

Build a sample portfolio Forecast income

Visual comparison

Key metrics

Projected income on $10K

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

Quick verdict

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

XLK offers the higher yield at 0.43% vs 0.33% 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 track different benchmarks: VGT is linked to Basket (Vanguard Information Technology ETF holdings) while XLK tracks Technology Select Sector Index, which means their performance drivers differ.

VGT is the larger fund by assets ($146.5B), which generally means tighter spreads and better liquidity.

Deep dive

Yield & income

On a $10,000 investment, VGT would generate roughly $2.75/month, while XLK would produce $3.58/month, at current distribution rates. Both pay quarterly distributions.

VGT yield0.33%

XLK yield0.43%

Monthly diff on $10K$0.83

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 Basket (Vanguard Information Technology ETF holdings) with a basket approach, while XLK tracks Technology Select Sector Index using a technology strategy. Beta is 1.29 for VGT and 1.26 for XLK, indicating XLK is less volatile relative to the market.

VGT beta1.29

XLK beta1.26

Fund details

VGT is managed by Vanguard (launched 01/26/2004) with $146.5B in assets. XLK is managed by State Street (launched 12/16/1998) with $103.3B in assets.

VGT AUM$146.5B

XLK AUM$103.3B

Ready to act?

Open in Comparator Model in portfolio See pricing

Frequently asked questions

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 Basket (Vanguard Information Technology ETF holdings) with a basket strategy, while XLK (Technology Select Sector SPDR Fund) 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. Many income investors hold both to diversify across different strategies and underlying indexes. This can reduce concentration risk while maintaining a strong income stream.

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 $2.75 per month ($33.00 annually). The same in XLK would produce about $3.58 per month ($43.00 annually).

More comparisons to explore

People also compare VGT with

People also compare XLK with

Popular comparisons

VGT vs XLK — at a glance

Generated April 2026 from current fund data.

Overview

VGT and XLK are both broad-based U.S. technology ETFs tracking different indexes. VGT targets the full information technology market (large, mid, and small cap) via the MSCI US Investable Market Index, while XLK narrows its focus to the 65 largest tech companies within the S&P 500. Both are ultra-low-cost, highly liquid funds, but they differ in breadth of coverage and resulting concentration.

How they differ

The biggest difference is scope: VGT captures the entire tech sector across market caps, while XLK is confined to S&P 500 constituents—meaning VGT includes smaller semiconductor and software makers that XLK doesn't hold. Second, VGT carries a higher beta (1.18 vs. 1.11), reflecting its exposure to smaller, more volatile companies; that extra volatility shows in its 52-week range ($484.86 to $806.99) versus XLK's ($92.59 to $153.00). Third, both charge minimal fees—VGT at 0.09% and XLK at 0.08%—but VGT's far larger asset base ($121 billion vs. $84 billion) ensures tighter bid-ask spreads and negligible tracking error. Distribution yields are modest and similar (0.38% for VGT, 0.50% for XLK), reflecting the tech sector's low dividend culture overall.

Who each is best for

VGT: Growth-oriented investors with a 10+ year horizon who want maximum exposure to the entire U.S. tech ecosystem, including sub-$10 billion companies; best in taxable accounts due to minimal turnover.
XLK: Core equity investors who prefer blue-chip mega-cap tech stability and are comfortable excluding emerging or mid-sized players; works well as a core holding in any account type.

Key risks to know

Sector concentration: Both funds are 100% technology exposure. A downturn in semiconductors, software, or cloud computing hits both immediately; diversification is zero.
Beta and drawdown risk: VGT's 1.18 beta means it amplifies market swings—in a 20% market decline, expect roughly a 24% drop in VGT versus 22% in XLK.
Valuation sensitivity: Tech earnings multiples are historically volatile. A sharp multiple contraction can pressure both funds regardless of earnings growth.
Small-cap lag in VGT: Mid and small-cap holdings in VGT carry higher liquidity risk and may underperform large caps during risk-off periods.

Bottom line

If you want maximum breadth across all tech company sizes and can tolerate higher volatility, VGT's wider index captures more of the ecosystem; if you prefer blue-chip stability and are comfortable with the 500 largest names, XLK's tighter focus and slightly lower beta might feel less choppy. Both are cheap and liquid—the choice hinges on whether you want to cast a wider net or stick with proven mega-caps. Past performance doesn't predict future results.

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