Dividend comparison
VGT vs XLK: Which Is Better?
Fees, yield, total returns, drawdowns, holdings overlap and dividend history for Vanguard Information Technology ETF and State Street Technology Select Sector SPDR ETF, side by side. Updated October 21, 2026.
VGT vs XLK: key differences
The short answer, from the latest data on this page.
- Fees. XLK is cheaper at 0.08% a year versus 0.09% for VGT. On $10,000 that is $1 a year less in fees.
- Income. Their trailing yields are almost the same: 0.39% for VGT and 0.45% for XLK. Both pay annual.
- Performance. Over the last 5 years, XLK returned 142.8% versus 132.3% for VGT, with dividends reinvested. $10,000 would have grown to $24,275 in XLK and $23,232 in VGT.
- Risk. Their worst declines over the last 5 years were similar: -35.1% for VGT and -33.6% for XLK from peak to trough.
- Diversification. VGT holds 310 positions and XLK holds 75. The ten largest positions make up 63.6% of VGT and 65.2% of XLK.
- Overlap. 85% of the two portfolios overlap by weight, across 73 shared holdings. Owning both adds little diversification.
- Dividend growth. XLK grew its yearly payout 8.7% a year over the last 4 years, versus 1.0% for VGT.
Bottom line: VGT fits better if you care most about broader diversification. XLK fits better if you care most about stronger 5-year returns and faster dividend growth. With 85% overlap, most investors would hold one or the other rather than both.
Side-by-side snapshot
Trailing twelve-month figures where available. Higher yield is highlighted — not a buy recommendation.
| Metric | VGT Vanguard Information Technology ETF | XLK State Street Technology Select Sector SPDR ETF |
|---|---|---|
| Dividend yield (TTM) | 0.39% | 0.45% |
| Dividend / share (TTM) | $0.47 | $0.83 |
| Payout frequency | Annual | Annual |
| Last dividend | $0.1465 on Sep 25, 2026 | $0.2207 on Sep 23, 2026 |
| Ex-dividend date | Sep 23, 2026 | Sep 21, 2026 |
| Dividend growth (CAGR) | 1.0% over 4 yrs | 8.7% over 4 yrs |
| Price | $120.20 | $185.44 |
| Dividend growth streak | — | 4 years |
| Beta | 1.35 | 1.35 |
| Max drawdown (5Y) | -35.1% | -33.6% |
| Market cap | $138.44B | $120.98B |
| Exchange | AMEX | AMEX |
| Expense ratio | 0.09% | 0.08% |
| Assets under management | $178.00B | $120.70B |
| Number of holdings | 310 | 75 |
| Top 10 concentration | 63.6% | 65.2% |
Income on a $10,000 investment
Illustrative only — assumes current TTM yield stays constant. Actual distributions change.
VGT
$3.28/mo
$39 /yr at 0.39% yield
XLK
$3.75/mo
$45 /yr at 0.45% yield
Dividend history
Total dividends paid per share in each calendar year. VGT pays annual; XLK pays annual.
| Year | VGT | XLK |
|---|---|---|
| 2025 | $0.3810 | $0.7840 |
| 2024 | $0.4644 | $0.7617 |
| 2023 | $0.3904 | $0.7297 |
| 2022 | $0.3636 | $0.6453 |
| 2021 | $0.3654 | $0.5613 |
Strategy: Sector and thematic
Funds that hold a single industry or theme, such as technology, semiconductors, healthcare or energy. Funds covering the same sector can still differ in concentration rules: some cap the largest positions while others let the biggest companies take a quarter of the fund. Sector funds are usually used to tilt a portfolio rather than as its core.
A single sector can fall far further than the broad market and stay down for years, and the largest names often dominate the fund.
Performance
Total returns with dividends reinvested, from the adjusted closing price series. $10,000 invested on Oct 20, 2021 would now be worth $23,232 in VGT and $24,275 in XLK.
| Period | VGT | XLK |
|---|---|---|
| 1 month | -1.61% | -2.08% |
| 3 months | 6.28% | 5.66% |
| Year to date | 28.02% | 29.27% |
| 1 year | 26.74% | 29.34% |
| 3 years | 138.07% | 130.27% |
| 5 years | 132.32% | 142.75% |
- VGT
- XLK
Both series indexed to 100 on 2021-10-20 using the adjusted closing price series. Past performance does not guarantee future results.
Sector allocation
Weight of each sector within the fund. Sectors are aligned on the same row so the two funds can be read against each other directly.
- VGT
- XLK
VGT vs XLK holdings overlap
85% overlap by weight, with 73 holdings in common. Overlap adds up the smaller of the two weights for every stock both funds own, so 100% would mean identical portfolios.
| Largest shared holdings | VGT weight | XLK weight |
|---|---|---|
| NVDANVIDIA Corp | 17.58% | 15.45% |
| AAPLApple Inc | 15.91% | 14.94% |
| MSFTMicrosoft Corp | 11.16% | 11.71% |
| AVGOBroadcom Inc | 4.11% | 4.66% |
| MUMicron Technology Inc | 4.45% | 3.92% |
| AMDAdvanced Micro Devices Inc | 3.67% | 4.66% |
| INTCIntel Corp | 1.98% | 2.69% |
| CSCOCisco Systems Inc | 1.60% | 2.55% |
| LRCXLam Research Corp | 1.55% | 1.99% |
| PLTRPalantir Technologies Inc | 1.55% | 2.58% |
Top 10 holdings
Largest positions by portfolio weight.
VGT310 holdings total
Quick verdict
VGT fits better if you care most about broader diversification. XLK fits better if you care most about stronger 5-year returns and faster dividend growth. With 85% overlap, most investors would hold one or the other rather than both. Model the holding inside your real portfolio before deciding.
Still deciding? Compare them in your portfolio
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Frequently asked questions
Is VGT or XLK better for dividend income?
It depends on your goals. VGT currently yields 0.39% Trailing Twelve Months (TTM) while XLK yields 0.45%. Higher yield means more current income per dollar invested, but may come with different risk, growth, or NAV characteristics. Compare total return and payout sustainability — not just the headline yield.
What is the difference between VGT and XLK?
Vanguard Information Technology ETF (VGT) is an ETF listed on AMEX. State Street Technology Select Sector SPDR ETF (XLK) is an ETF listed on AMEX. Side-by-side metrics on this page cover yield, fees, returns, drawdowns, holdings overlap and dividend history when available.
Which is cheaper, VGT or XLK?
XLK has the lower expense ratio. VGT charges 0.09% a year and XLK charges 0.08%, a difference of $1 a year on a $10,000 investment.
Which has performed better, VGT or XLK?
Over the last 5 years, XLK has the higher total return with dividends reinvested: VGT returned 132.3% and XLK returned 142.8%. Past performance does not predict future returns.
Which is riskier, VGT or XLK?
Measured by the worst peak-to-trough decline over the last five years, VGT has been riskier: VGT fell as much as 35.1% and XLK as much as 33.6%. Their betas are 1.35 and 1.35.
How much do VGT and XLK overlap?
About 85% of the two portfolios overlap by weight, across 73 shared holdings. The largest shared positions are NVDA, AAPL, MSFT. Holding both adds little diversification.
How often do VGT and XLK pay dividends?
Both pay annual. The most recent payments were $0.1465 for VGT and $0.2207 for XLK.
How much income does $10,000 in VGT vs XLK generate?
At current TTM yields, $10,000 in VGT would generate roughly $3.28 per month ($39 annually). The same amount in XLK would produce about $3.75 per month ($45 annually). Actual payouts vary with distribution changes and reinvestment.
Can I hold both VGT and XLK?
Yes. Many income investors hold both to diversify strategy or index exposure. Whether the combination actually diversifies depends on overlapping holdings and factor exposure. Model both inside Dividend Wealth to see combined income, sector mix, and forecast impact.
Where can I compare VGT vs XLK with my full portfolio?
Create a free Dividend Wealth account to import or enter holdings, forecast dividend income, and see how VGT and XLK fit alongside the rest of your portfolio. A 14-day free trial of Standard is available with no credit card required; a limited Free plan is also available.
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For informational and educational purposes only. Not investment advice. Past performance and current yields do not guarantee future results. Verify figures independently before making investment decisions.