ETF Versus

VYM vs XLK

Vanguard High Dividend Yield Index Fund ETF Shares vs State Street Technology Select Sector SPDR ETF

Last updated: 2026-04-02

VYM Vanguard

Vanguard High Dividend Yield Index Fund ETF Shares (VYM) 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 2.37%. Launched in 2006, the fund has a 20-year track record.

AUM: $71.3B ER: 0.04% Yield: 2.37% Since: Nov 10, 2006
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

VYM 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 15.0%. Income investors may prefer VYM for its higher yield (2.4% vs 0.6%).

Key Metrics

Metric VYM XLK
Expense Ratio 0.04% 0.08%
Dividend Yield 2.4% 0.6%
Fund Family Vanguard N/A
Category US Dividend US Sector - Technology

Performance Chart

Indexed to 100 at start (5-year comparison)

80 108 136 164 192 220 2021-04 2022-06 2023-09 2024-12 2026-04
VYM +44.6%
XLK +95.1%

Performance Comparison

Period VYM XLK Difference
1 Month -4.59% -3.32% -1.27%
3 Months +2.20% -6.51% +8.71%
6 Months +4.52% -5.23% +9.75%
YTD +2.20% -6.51% +8.71%
1 Year +14.98% +29.73% -14.75%
3 Years +39.18% +78.96% -39.78%
5 Years +44.55% +95.13% -50.58%

Fee Impact Over Time

Estimated fee cost difference assuming 8% annual returns

Investment Period VYM Fees XLK Fees You Save
$10.000 10 years $80 $159 $80
$10.000 20 years $344 $686 $342
$10.000 30 years $1.112 $2.212 $1.100
$50.000 10 years $399 $797 $398
$50.000 30 years $5.560 $11.061 $5.501
$100.000 30 years $11.121 $22.123 $11.002

Risk Metrics

Based on 5 years of daily returns

Metric VYM XLK
Annualized Volatility 14.0% 24.7%
Max Drawdown -17.5% -34.0%
Sharpe Ratio 0.28 0.49

Dividend Comparison

Metric VYM XLK
Annual Dividend (per share) $3.51 $0.77
Dividend Yield 2.37% 0.57%
Distribution Frequency Quarterly Quarterly

Top Holdings

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

VYM Top Holdings

NameWeight
Broadcom Inc.AVGO6.48%
JPMorgan Chase & Co.JPM3.36%
Exxon Mobil CorporationXOM2.83%
Johnson & JohnsonJNJ2.63%
Walmart Inc.WMT2.44%
AbbVie Inc.ABBV1.81%
The Procter & Gamble CompanyPG1.72%
The Home Depot, Inc.HD1.66%
Chevron CorporationCVX1.54%
Caterpillar Inc.CAT1.51%

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 VYM 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 VYM if...

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

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