ETF Versus

VB vs XLK

Vanguard Small-Cap Index Fund ETF Shares vs State Street Technology Select Sector SPDR ETF

Last updated: 2026-04-02

VB Vanguard

Vanguard Small-Cap Index Fund ETF Shares (VB) is an exchange-traded fund issued by Vanguard that provides exposure to small-cap U.S. equities with higher growth potential and volatility. It charges a very low expense ratio of 0.03%. The fund offers a moderate dividend yield of 1.33%. Launched in 2004, the fund has a 22-year track record.

AUM: $69.1B ER: 0.03% Yield: 1.33% Since: Jan 26, 2004
XLK

State Street Technology Select Sector SPDR ETF (XLK) is an exchange-traded fund 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 0.57%. Launched in 1998, the fund has a 28-year track record.

AUM: $82.2B ER: 0.08% Yield: 0.57% Since: Dec 16, 1998

Quick Verdict

VB has a slightly lower expense ratio (0.03% vs 0.08%), saving about $99 per $10,000 over 10 years. Over the past year, XLK has significantly outperformed with a 29.7% return vs 18.4%. Income investors may prefer VB for its higher yield (1.3% vs 0.6%).

Key Metrics

Metric VB XLK
Expense Ratio 0.03% 0.08%
Dividend Yield 1.3% 0.6%
Fund Family Vanguard N/A
Category US Small Cap US Sector - Technology

Performance Chart

Indexed to 100 at start (5-year comparison)

75 104 133 162 191 220 2021-04 2022-06 2023-09 2024-12 2026-04
VB +20.7%
XLK +95.1%

Performance Comparison

Period VB XLK Difference
1 Month -5.50% -3.32% -2.18%
3 Months +0.71% -6.51% +7.22%
6 Months +2.15% -5.23% +7.38%
YTD +0.71% -6.51% +7.22%
1 Year +18.40% +29.73% -11.33%
3 Years +39.02% +78.96% -39.94%
5 Years +20.71% +95.13% -74.42%

Fee Impact Over Time

Estimated fee cost difference assuming 8% annual returns

Investment Period VB Fees XLK Fees You Save
$10.000 10 years $60 $159 $99
$10.000 20 years $258 $686 $427
$10.000 30 years $835 $2.212 $1.377
$50.000 10 years $299 $797 $497
$50.000 30 years $4.176 $11.061 $6.886
$100.000 30 years $8.352 $22.123 $13.771

Risk Metrics

Based on 5 years of daily returns

Metric VB XLK
Annualized Volatility 20.8% 24.7%
Max Drawdown -28.8% -34.0%
Sharpe Ratio 0.07 0.49

Dividend Comparison

Metric VB XLK
Annual Dividend (per share) $3.50 $0.77
Dividend Yield 1.33% 0.57%
Distribution Frequency Quarterly Quarterly

Top Holdings

0 of top 9 holdings overlap (0% overlap in top holdings)

VB Top Holdings

NameWeight
Sandisk CorporationSNDK1.21%
Comfort Systems USA, Inc.FIX0.65%
Lumentum Holdings Inc.LITE0.64%
Ciena CorporationCIEN0.64%
Coherent Corp.COHR0.53%
Rocket Lab CorporationRKLB0.48%
NRG Energy, Inc.NRG0.44%
Bloom Energy CorporationBE0.43%
EMCOR Group, Inc.EME0.42%

XLK Top Holdings

NameWeight
NVIDIA CorporationNVDA15.50%
Apple Inc.AAPL13.63%
Microsoft CorporationMSFT10.05%
Broadcom Inc.AVGO5.37%
Micron Technology, Inc.MU3.39%
Palantir Technologies Inc.PLTR2.98%
Advanced Micro Devices, Inc.AMD2.95%
Cisco Systems, Inc.CSCO2.73%
Applied Materials, Inc.AMAT2.42%
Lam Research CorporationLRCX2.38%

Which One Should You Choose?

Choose VB if...

you want the lowest fees and plan to buy and hold long-term. Over decades, the expense ratio difference compounds significantly.

Choose XLK if...

recent performance momentum matters to your strategy. Note that past performance doesn't guarantee future results.

Choose VB if...

you prioritize dividend income and want higher regular distributions from your portfolio.

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