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 (+34.18% vs +31.68% 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 score | 82.0 | 83.0 |
| Latest close | $113.15 | $175.35 |
| 1M return | -3.47% | -5.53% |
| 6M return | +19.25% | +19.68% |
| 1Y return | +31.68% | +34.18% |
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 | $13.23K (+32.3%) started 2025-07-31 | $13.49K (+34.9%) started 2025-07-31 |
| 5Y ago | $23.53K (+135.3%) started 2021-08-02 | $24.75K (+147.5%) started 2021-08-02 |
| 10Y ago | $93.83K (+838.3%) started 2016-08-01 | $93.51K (+835.1%) started 2016-08-01 |
Hypothetical — past performance does not guarantee future results.
| Metric | VGT | XLK |
|---|---|---|
| Expense ratio | 0.09% | 0.08% |
| Total assets (AUM) | $169.25B | $123.91B |
| Dividend yield | 0.36% | 0.42% |
| Trailing P/E | N/A | N/A |
| Beta | 1.36 | 1.35 |
| 52-week change | 31.68% | 34.18% |
| Metric | VGT | XLK |
|---|---|---|
| 1Y return | +31.68% | +34.18% |
| 6M return | +19.25% | +19.68% |
| 1M return | -3.47% | -5.53% |
| 1Y Sharpe ratio | 1.08 | 1.11 |
| Beta | 1.36 | 1.35 |
| Dividend yield | 0.36% | 0.42% |
| 5Y CAGR | +17.90% | +18.98% |
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 | Growth | +31.68% | +34.18% |
| CAGR | +31.70% | +34.21% | |
| Sharpe ratio | 1.08 | 1.11 | |
| Max drawdown | 16.40% | 15.92% | |
| Max daily drop | 6.14% | 6.66% | |
| Max wkly drop | 9.34% | 9.99% | |
| 5Y | Growth | +127.54% | +138.22% |
| CAGR | +17.90% | +18.98% | |
| Sharpe ratio | 0.59 | 0.63 | |
| Max drawdown | 35.07% | 33.56% | |
| Max daily drop | 7.24% | 6.82% | |
| Max wkly drop | 14.00% | 13.59% | |
| 10Y | Growth | +755.25% | +737.10% |
| CAGR | +23.95% | +23.68% | |
| Sharpe ratio | 0.81 | 0.80 | |
| Max drawdown | 35.07% | 33.56% | |
| Max daily drop | 13.49% | 13.81% | |
| Max wkly drop | 17.57% | 17.04% |
| Category | VGT | XLK |
|---|---|---|
| Fund name | Vanguard Information Tech ETF | State Street Technology Select |
| Type | ETF | ETF |
| Expense ratio | 0.09% | 0.08% |
| Total assets (AUM) | $169.25B | $123.91B |
| Dividend yield | 0.36% | 0.42% |
- →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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