What is the expense ratio of VGT vs XLK?

VGT has an expense ratio of 0.09%, while XLK has an expense ratio of 0.08%.

VGT vs XLK

Vanguard Information Technology Index Fund ETF Shares vs State Street Technology Select Sector SPDR ETF

Last updated: 2026-04-02

Vanguard Information Technology Index Fund ETF Shares (VGT) is an exchange-traded fund that provides exposure to us sector - technology securities. It charges a low expense ratio of 0.09%. The fund offers a modest dividend yield of 0.43%. Launched in 2004, the fund has a 22-year track record.

AUM: $102.6B ER: 0.09% Yield: 0.43% 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

Both funds have nearly identical expense ratios (0.08% vs 0.09%), so fees are not a differentiator here. Both funds have delivered similar 1-year returns (29.2% vs 29.7%), tracking closely.

Key Metrics

Metric	VGT	XLK
Expense Ratio	0.09%	0.08%
Dividend Yield	0.4%	0.6%
Fund Family	N/A	N/A
Category	US Sector - Technology	US Sector - Technology

Performance Chart

Indexed to 100 at start (5-year comparison)

VGT +89.7%

XLK +95.1%

Performance Comparison

Period	VGT	XLK	Difference
1 Month	-3.71%	-3.32%	-0.39%
3 Months	-6.53%	-6.51%	-0.02%
6 Months	-6.49%	-5.23%	-1.26%
YTD	-6.53%	-6.51%	-0.02%
1 Year	+29.20%	+29.73%	-0.53%
3 Years	+83.56%	+78.96%	+4.60%
5 Years	+89.73%	+95.13%	-5.40%

Fee Impact Over Time

Estimated fee cost difference assuming 8% annual returns

Investment	Period	VGT Fees	XLK Fees	You Save
$10.000	10 years	$179	$159	$20
$10.000	20 years	$771	$686	$85
$10.000	30 years	$2.486	$2.212	$273
$50.000	10 years	$896	$797	$99
$50.000	30 years	$12.428	$11.061	$1.366
$100.000	30 years	$24.855	$22.123	$2.732

Risk Metrics

Based on 5 years of daily returns

Metric	VGT	XLK
Annualized Volatility	25.1%	24.7%
Max Drawdown	-35.5%	-34.0%
Sharpe Ratio	0.46	0.49

Dividend Comparison

Metric	VGT	XLK
Annual Dividend (per share)	$3.06	$0.77
Dividend Yield	0.43%	0.57%
Distribution Frequency	Quarterly	Quarterly

Top Holdings

10 of top 10 holdings overlap (100% overlap in top holdings)

VGT Top Holdings

Name	Weight
NVIDIA CorporationNVDA	18.07%
Apple Inc.AAPL	15.84%
Microsoft CorporationMSFT	10.39%
Broadcom Inc.AVGO	4.34%
Micron Technology, Inc.MU	2.37%
Advanced Micro Devices, Inc.AMD	1.65%
Cisco Systems, Inc.CSCO	1.63%
Palantir Technologies Inc.PLTR	1.57%
Applied Materials, Inc.AMAT	1.54%
Lam Research CorporationLRCX	1.53%

XLK Top Holdings

Name	Weight
NVIDIA CorporationNVDA	15.50%
Apple Inc.AAPL	13.63%
Microsoft CorporationMSFT	10.05%
Broadcom Inc.AVGO	5.37%
Micron Technology, Inc.MU	3.39%
Palantir Technologies Inc.PLTR	2.98%
Advanced Micro Devices, Inc.AMD	2.95%
Cisco Systems, Inc.CSCO	2.73%
Applied Materials, Inc.AMAT	2.42%
Lam Research CorporationLRCX	2.38%

Which One Should You Choose?

Either works if...

you just need broad us sector - technology exposure. Both are solid options — pick whichever your brokerage offers commission-free.

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