VGT vs XLK Stock Comparison: AI Score, Valuation, Performance and Upside
VGT and XLK both track the US Information Technology sector but with important differences. VGT includes small and mid-cap IT companies (300+ holdings) beyond the S&P 500, while XLK holds only S&P 500 IT companies (~70 holdings). XLK is more concentrated in Apple and Microsoft and costs slightly more. VGT is the broader, cheaper option; XLK is the more concentrated large-cap tech play.
VGT is the better choice for investors who want full IT sector breadth at a lower cost; XLK suits those who want pure S&P 500 IT exposure with the highest-liquidity large-cap technology names.
XLK holds the edge across 4 of 5 key metrics in this comparison. XLK has delivered stronger 1-year price return (+16.48% vs +15.31% for VGT).
- want the broadest IT sector coverage including small and mid-cap tech companies
- prefer lower cost (0.10% vs 0.13%) for long-term sector exposure
- value the MSCI methodology capturing the full investable IT sector universe
- want to include high-growth smaller tech companies not yet in the S&P 500
- want IT sector exposure limited to S&P 500 companies only
- prefer the sector SPDR brand and ecosystem for portfolio construction
- value maximum liquidity in the tech sector ETF for large institutional trades
- are using sector SPDRs as a complete portfolio toolkit across multiple GICS sectors
| Metric | VGT | XLK |
|---|---|---|
| ETF scorei | 29.5 | 29.6 |
| Latest closei | $113.83 | $174.22 |
| 1M returni | -11.29% | -12.81% |
| 3M returni | -1.02% | -2.03% |
| 6M returni | +8.72% | +7.76% |
| 1Y returni | +15.31% | +16.48% |
The ETF score weights long-term returns and risk-adjusted performance most heavily, but still rewards low expense ratios, larger fund size, and broader diversification — so it can favor low-cost, broad, mega-cap funds over smaller thematic or actively-managed funds even when the latter have delivered stronger returns.
How much would $10,000 be worth today if invested at the start of each period, with all dividends reinvested?
| Period | VGT | XLK |
|---|---|---|
| 1Y ago | $11.54K (+15.4%) started 2025-11-03 | $11.66K (+16.6%) started 2025-11-03 |
| 5Y ago | $22.06K (+120.6%) started 2021-11-03 | $22.93K (+129.3%) started 2021-11-03 |
| 10Y ago | $92.98K (+829.8%) started 2016-11-03 | $92.88K (+828.8%) started 2016-11-03 |
Hypothetical — past performance does not guarantee future results.
| Metric | VGT | XLK |
|---|---|---|
| Expense ratioi | 0.09% | 0.08% |
| Total assets (AUM)i | $177.93B | $127.3B |
| Dividend yieldi | 0.38% | 0.43% |
| Trailing P/Ei | 28.73 | 28.90 |
| Betai | 1.39 | 1.39 |
| 52-week change | 15.31% | 16.48% |
| Metric | VGT | XLK |
|---|---|---|
| 1Y returni | +15.31% | +16.48% |
| 6M returni | +8.72% | +7.76% |
| 3M returni | -1.02% | -2.03% |
| 1M returni | -11.29% | -12.81% |
| 1Y Sharpe ratio | 0.50 | 0.52 |
| Betai | 1.39 | 1.39 |
| Dividend yieldi | 0.38% | 0.43% |
| 5Y CAGR | +16.40% | +17.19% |
Over the past year, VGT and XLK have moved strongly in the same direction (correlation of 0.99), based on daily returns.
Lower drawdown and smaller single-period drops generally indicate a smoother ride, though they do not guarantee lower future risk.
| Period | Metric | VGT | XLK |
|---|---|---|---|
| 1Y | Growthi | +14.91% | +16.00% |
| CAGRi | +14.97% | +16.06% | |
| Volatilityi | 25.50% | 27.31% | |
| Sharpe ratioi | 0.50 | 0.52 | |
| Sortino ratioi | 0.71 | 0.73 | |
| Max drawdowni | 15.81% | 15.86% | |
| Current drawdowni | 12.30% | 13.75% | |
| Avg drawdowni | 5.25% | 5.28% | |
| Ulcer Indexi | 6.24% | 6.30% | |
| Max daily dropi | 6.14% | 6.66% | |
| Max wkly dropi | 9.34% | 9.99% | |
| 5Y | Growthi | +113.56% | +120.92% |
| CAGRi | +16.40% | +17.19% | |
| Volatilityi | 26.18% | 26.21% | |
| Sharpe ratioi | 0.54 | 0.57 | |
| Sortino ratioi | 0.78 | 0.82 | |
| Max drawdowni | 35.07% | 33.56% | |
| Current drawdowni | 12.30% | 13.75% | |
| Avg drawdowni | 9.34% | 8.66% | |
| Ulcer Indexi | 13.23% | 12.26% | |
| Max daily dropi | 7.24% | 6.82% | |
| Max wkly dropi | 14.00% | 13.59% | |
| 10Y | Growthi | +749.52% | +734.27% |
| CAGRi | +23.87% | +23.64% | |
| Volatilityi | 25.12% | 25.19% | |
| Sharpe ratioi | 0.80 | 0.79 | |
| Sortino ratioi | 1.14 | 1.13 | |
| Max drawdowni | 35.07% | 33.56% | |
| Current drawdowni | 12.30% | 13.75% | |
| Avg drawdowni | 6.40% | 6.05% | |
| Ulcer Indexi | 10.27% | 9.64% | |
| Max daily dropi | 13.49% | 13.81% | |
| Max wkly dropi | 17.57% | 17.04% |
| Category | VGT | XLK |
|---|---|---|
| Fund name | Vanguard Information Technology Index Fund ETF Shares | State Street Technology Select Sector SPDR ETF |
| Type | ETF | ETF |
| Expense ratioi | 0.09% | 0.08% |
| Total assets (AUM)i | $177.93B | $127.3B |
| Dividend yieldi | 0.38% | 0.43% |
- Broader 300+ holding exposure capturing small and mid-cap IT companies beyond mega-caps
- 0.10% expense ratio is lower than many sector ETF alternatives
- MSCI methodology provides consistent, rules-based coverage of the full IT sector
- S&P 500 IT sector focus means holdings are all large, liquid, well-covered companies
- Deep liquidity for institutional and ETF arbitrage activity
- Strong brand recognition as the sector SPDRs are the original sector ETF suite
- Apple and Microsoft together represent 40%+ of the index — significant concentration in two stocks
- Broad coverage dilutes the impact of small and mid-cap holdings given cap-weighting
- Technology sector ETFs will significantly overlap with S&P 500 holdings
- Even more concentrated in Apple and Microsoft than VGT — up to 48% combined
- 0.13% expense ratio is slightly higher than VGT's 0.10%
- No small or mid-cap tech exposure — misses faster-growing smaller companies
Compare more than two at a time
This page is a fixed writeup on VGT and XLK. Our comparison engine is the interactive version: load up to five tickers, switch timeframes, and get the correlation, drawdown, and overlap analysis that a static page can't show.
Add three more names beside VGT and XLK, mixing stocks and ETFs in the same table — useful when the real question is which of a whole peer group to own.
AI score, forward P/E, analyst target upside, operating margin, and revenue growth are scored head-to-head, with a running tally of which ticker leads on how many metrics.
Volatility, Sharpe and Sortino ratios, maximum, current, and average drawdown, Ulcer Index, and worst single-day and single-week drops across every timeframe.
Pairwise daily-return correlation for every combination, so you can see whether two holdings actually diversify each other or just move together.
A scatter plot of forward P/E against return on equity, plus drawdown and 30-day rolling volatility charts, to separate what is cheap from what is merely beaten down.
For ETFs, a top-holdings comparison that exposes hidden overlap between funds. Every comparison exports to CSV for your own spreadsheet work.
Two comparisons a week are free without an account. A 14-day trial removes the limit and adds AI price forecasts, stock rankings, saved watchlists, and the intrinsic value calculator — no credit card required.
Want deeper AI forecasts?
This comparison page is public and free forever. Subscribers can unlock saved watchlists, full AI rankings, detailed forecasts, and interactive analysis tools.