What is the expense ratio of VGT vs XLK?

VGT has an expense ratio of 0.09%, while XLK has an expense ratio of 0.08%.

VGT vs XLK

Vanguard Information Technology Index Fund ETF Shares vs State Street Technology Select Sector SPDR ETF

Last updated: 2026-04-10

VGT Vanguard

Vanguard Information Technology Index Fund ETF Shares (VGT) is an exchange-traded fund issued by Vanguard that provides exposure to us sector - technology securities. It charges a low expense ratio of 0.09%. The fund offers a modest dividend yield of 0.41%. Launched in 2004, the fund has a 22-year track record.

AUM: $111.1B ER: 0.09% Yield: 0.41% Since: Jan 26, 2004

XLK SPDR

State Street Technology Select Sector SPDR ETF (XLK) is an exchange-traded fund issued by SPDR that provides exposure to us sector - technology securities. It charges a low expense ratio of 0.08%. The fund offers a modest dividend yield of 0.54%. Launched in 1998, the fund has a 28-year track record.

AUM: $90.3B ER: 0.08% Yield: 0.54% Since: Dec 16, 1998

Quick Verdict

Both funds have nearly identical expense ratios (0.08% vs 0.09%), so fees are not a differentiator here. Both funds have delivered similar 1-year returns (45.9% vs 46.8%), tracking closely.

Key Metrics

Metric	VGT	XLK
Expense Ratio	0.09%	0.08%
Dividend Yield	0.4%	0.5%
Fund Family	Vanguard	SPDR
Category	US Sector - Technology	US Sector - Technology

Performance Chart

Indexed to 100 at start (5-year comparison)

VGT +95.4%

XLK +102.2%

Performance Comparison

Period	VGT	XLK	Difference
1 Month	+1.18%	+1.60%	-0.42%
3 Months	-2.85%	-2.80%	-0.05%
6 Months	-1.56%	+0.06%	-1.62%
YTD	-1.62%	-1.13%	-0.49%
1 Year	+45.89%	+46.81%	-0.92%
3 Years	+97.36%	+93.34%	+4.02%
5 Years	+95.36%	+102.25%	-6.89%

Fee Impact Over Time

Estimated fee cost difference assuming 8% annual returns

Investment	Period	VGT Fees	XLK Fees	You Save
$10,000	10 years	$179	$159	$20
$10,000	20 years	$771	$686	$85
$10,000	30 years	$2,486	$2,212	$273
$50,000	10 years	$896	$797	$99
$50,000	30 years	$12,428	$11,061	$1,366
$100,000	30 years	$24,855	$22,123	$2,732

Risk Metrics

Based on 5 years of daily returns

Metric	VGT	XLK
Annualized Volatility	25.1%	24.7%
Max Drawdown	-35.5%	-34.0%
Sharpe Ratio	0.48	0.51

Dividend Comparison

Metric	VGT	XLK
Annual Dividend (per share)	$3.06	$0.77
Dividend Yield	0.41%	0.54%
Distribution Frequency	Quarterly	Quarterly

Top Holdings

10 of top 10 holdings overlap (100% overlap in top holdings)

VGT Top Holdings

Name	Weight
NVIDIA CorporationNVDA	18.07%
Apple Inc.AAPL	15.84%
Microsoft CorporationMSFT	10.39%
Broadcom Inc.AVGO	4.34%
Micron Technology, Inc.MU	2.37%
Advanced Micro Devices, Inc.AMD	1.65%
Cisco Systems, Inc.CSCO	1.63%
Palantir Technologies Inc.PLTR	1.57%
Applied Materials, Inc.AMAT	1.54%
Lam Research CorporationLRCX	1.53%

XLK Top Holdings

Name	Weight
NVIDIA CorporationNVDA	15.30%
Apple Inc.AAPL	13.10%
Microsoft CorporationMSFT	9.49%
Broadcom Inc.AVGO	5.76%
Micron Technology, Inc.MU	3.96%
Advanced Micro Devices, Inc.AMD	3.22%
Cisco Systems, Inc.CSCO	2.74%
Lam Research CorporationLRCX	2.69%
Applied Materials, Inc.AMAT	2.63%
Palantir Technologies Inc.PLTR	2.49%

Which One Should You Choose?

Either works if...

you just need broad us sector - technology exposure. Both are solid options — pick whichever your brokerage offers commission-free.

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