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 (+39.30% vs +35.29% 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 | 88.0 | 89.0 |
| Latest closei | $121.48 | $188.06 |
| 1M returni | +1.41% | +1.31% |
| 6M returni | +34.96% | +36.18% |
| 1Y returni | +35.29% | +39.30% |
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 | $13.59K (+35.9%) started 2025-09-17 | $14K (+40.0%) started 2025-09-17 |
| 5Y ago | $24.8K (+148.0%) started 2021-09-17 | $26.09K (+160.9%) started 2021-09-17 |
| 10Y ago | $98.13K (+881.3%) started 2016-09-19 | $98.19K (+881.9%) started 2016-09-19 |
Hypothetical — past performance does not guarantee future results.
| Metric | VGT | XLK |
|---|---|---|
| Expense ratioi | 0.09% | 0.08% |
| Total assets (AUM)i | $170.65B | $121.44B |
| Dividend yieldi | 0.36% | 0.43% |
| Trailing P/Ei | 32.41 | 33.29 |
| Betai | 1.37 | 1.36 |
| 52-week change | 35.29% | 39.30% |
| Metric | VGT | XLK |
|---|---|---|
| 1Y returni | +35.29% | +39.30% |
| 6M returni | +34.96% | +36.18% |
| 1M returni | +1.41% | +1.31% |
| 1Y Sharpe ratio | 1.16 | 1.22 |
| Betai | 1.37 | 1.36 |
| Dividend yieldi | 0.36% | 0.43% |
| 5Y CAGR | +19.12% | +20.23% |
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 | +35.29% | +39.30% |
| CAGRi | +35.32% | +39.33% | |
| Volatilityi | 24.89% | 26.40% | |
| Sharpe ratioi | 1.16 | 1.22 | |
| Sortino ratioi | 1.70 | 1.79 | |
| Max drawdowni | 16.40% | 15.92% | |
| Current drawdowni | 3.30% | 5.01% | |
| Avg drawdowni | 5.18% | 5.14% | |
| Ulcer Indexi | 6.29% | 6.27% | |
| Max daily dropi | 6.14% | 6.66% | |
| Max wkly dropi | 9.34% | 9.99% | |
| 5Y | Growthi | +139.81% | +151.16% |
| CAGRi | +19.12% | +20.23% | |
| Volatilityi | 26.02% | 25.98% | |
| Sharpe ratioi | 0.63 | 0.67 | |
| Sortino ratioi | 0.91 | 0.97 | |
| Max drawdowni | 35.07% | 33.56% | |
| Current drawdowni | 3.30% | 5.01% | |
| Avg drawdowni | 9.29% | 8.59% | |
| Ulcer Indexi | 13.20% | 12.23% | |
| Max daily dropi | 7.24% | 6.82% | |
| Max wkly dropi | 14.00% | 13.59% | |
| 10Y | Growthi | +794.41% | +783.07% |
| CAGRi | +24.51% | +24.36% | |
| Volatilityi | 24.98% | 25.01% | |
| Sharpe ratioi | 0.83 | 0.82 | |
| Sortino ratioi | 1.18 | 1.17 | |
| Max drawdowni | 35.07% | 33.56% | |
| Current drawdowni | 3.30% | 5.01% | |
| Avg drawdowni | 6.37% | 6.01% | |
| Ulcer Indexi | 10.26% | 9.62% | |
| 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 | $170.65B | $121.44B |
| Dividend yieldi | 0.36% | 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
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