VIG vs XLK
Vanguard Dividend Appreciation Index Fund ETF Shares vs State Street Technology Select Sector SPDR ETF
Last updated: 2026-04-02
Vanguard Dividend Appreciation Index Fund ETF Shares (VIG) is an exchange-traded fund issued by Vanguard that provides exposure to U.S. dividend-paying stocks selected for yield or dividend growth. It charges a very low expense ratio of 0.04%. The fund offers a moderate dividend yield of 1.60%. Launched in 2006, the fund has a 20-year track record.
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.
Quick Verdict
VIG has a slightly lower expense ratio (0.04% vs 0.08%), saving about $80 per $10,000 over 10 years. Over the past year, XLK has significantly outperformed with a 29.7% return vs 11.4%. Income investors may prefer VIG for its higher yield (1.6% vs 0.6%).
Key Metrics
Performance Chart
Indexed to 100 at start (5-year comparison)
Performance Comparison
Fee Impact Over Time
Estimated fee cost difference assuming 8% annual returns
Risk Metrics
Based on 5 years of daily returns
Dividend Comparison
Top Holdings
3 of top 10 holdings overlap (30% overlap in top holdings)
VIG Top Holdings
| Name | Weight |
|---|---|
| Broadcom Inc.AVGO | 5.92% |
| Apple Inc.AAPL | 3.89% |
| Eli Lilly and CompanyLLY | 3.70% |
| Microsoft CorporationMSFT | 3.45% |
| JPMorgan Chase & Co.JPM | 3.42% |
| Exxon Mobil CorporationXOM | 2.87% |
| Johnson & JohnsonJNJ | 2.65% |
| Walmart Inc.WMT | 2.48% |
| Visa Inc.V | 2.23% |
| Costco Wholesale CorporationCOST | 1.98% |
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?
Choose VIG 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 VIG if...
you prioritize dividend income and want higher regular distributions from your portfolio.