XLK vs VGT: S&P 500 Tech vs All US Information Technology
XLK owns S&P 500 tech stocks. VGT is broader — it also includes smaller tech companies outside the S&P 500. Both are heavily concentrated in Apple, Microsoft, and Nvidia.
XLK (Technology Select Sector SPDR) and VGT (Vanguard Information Technology ETF) are both technology ETFs but draw from different universes. XLK holds only the technology sector stocks within the S&P 500 — about 65 large-cap names, concentrating heavily on Apple, Microsoft, and Nvidia. VGT uses the MSCI US Investable Market IT index, which includes S&P 500 tech names PLUS mid and small-cap technology companies — roughly 300+ holdings. Despite VGT's broader universe, the top holdings are nearly identical since mega-cap tech dominates the weighting. XLK charges 0.09% vs VGT's 0.10%. Both are essentially a mega-cap tech concentration play. Note: Visa and Mastercard are in XLK (classified in tech by S&P GICS) but NOT in VGT (classified as financials by MSCI) — a real composition difference.
Whether the lower-cost fund suits your situation depends on your existing holdings, account type, tax situation, and how you use each fund. This is a cost comparison, not a personalized recommendation.
Both funds trade commission-free at every major brokerage. Where to buy them →
📋 XLK vs VGT: Key Facts Side by Side
| Metric | XLK | VGT |
|---|---|---|
| Fund Name | State Street Technology Select Sector SPDR ETF | Vanguard Information Technology Index Fund ETF Shares |
| Issuer | State Street | Vanguard |
| Tracks Index | S&P 500 Technology Sector | MSCI US Investable Market IT 25/50 |
| Expense Ratio | 0.09% ✓ | 0.10% |
| Cost per $10K/yr | $9.00 | $10.00 |
| AUM | $127.3B | $177.9B |
| Holdings | 65 | 320 |
| Inception | 1998 | 2004 |
| 1-Year Return | +38.14% | +34.45% |
| 3-Year Return | +32.74% | +33.74% |
| 5-Year Return | +22.07% | +20.90% |
| Dividend Yield | 0.43% | 0.38% |
| Holdings Overlap | See holdings overlap → | |
| Avg Bid-Ask Spread | 0.00% | 0.00% |
AUM and returns updated Oct 14, 2026 from ETF BFF database; expense ratios verified against issuer filings. Returns are annualised. Not investment advice.
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📊 XLK vs VGT: Annualised Returns
Annualised returns (trailing, price-based). Past performance does not guarantee future results.
🎯 Which Fund Fits Which Investor?
- want the lowest fees: saves ~$1/yr per $10K vs VGT
- already use State Street and prefer staying within one fund family
- want broader diversification (320 holdings vs 65)
- already use Vanguard and prefer staying within one fund family
💰 What the Fee Difference Actually Costs
Adjust the numbers for your situation. This models each fund's expense ratio compounding against your balance over time.
Assumes a constant annual return reinvested, with each fund's expense ratio deducted yearly. Illustrative only; actual returns vary. Past performance does not guarantee future results.
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