Over the trailing five-year window, VGT and XLK moved almost in lockstep (daily-return correlation 0.99), so holding both adds little diversification.
VGT delivered the higher five-year annualized total return (11.4% vs 6.9% for XLK), though it is only one window and says nothing about the future.
On cost, XLK is cheaper — 0.08% versus 0.09% for VGT.
The numbers, side by side
Per-fund metrics. Returns are total return (dividends reinvested, net of fees); volatility, drawdown and correlation are computed from daily closing prices over the trailing five-year window ending Sep 25, 2026.
| Metric | VGT | XLK |
|---|---|---|
| 5-yr annualized returntotal return, incl. dividends & fees | 11.4% | 6.9% |
| 5-yr annualized volatilitystandard deviation of daily returns | 26.0% | 26.0% |
| Max drawdown (5-yr window)worst peak-to-trough decline | -35.5% | -34.0% |
| Return per unit of riskSharpe-style, 4.7% risk-free | 0.26 | 0.09 |
| Expense ratioannual fund cost | 0.09% | 0.08% |
How similar are they?
| Relationship metric | VGT & XLK |
|---|---|
| Correlation of daily returns5-yr; 1.00 = moves identically | 0.99 |
| Sector overlapΣ min(weight) across sectors | 99.3% |
Where each fund is concentrated
VGT — top sectors
- Technology99.27%
- Financial Services0.34%
- Industrials0.31%
XLK — top sectors
- Technology99.84%
- Energy0.12%
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Disclaimer: This content is for educational and informational purposes only and does not constitute financial, investment, or tax advice. The information presented reflects the author's opinions and analysis at the time of writing and may not be suitable for your individual circumstances. Always consult with a qualified financial advisor before making investment decisions. Past performance is not indicative of future results. MinMaxDoc and its authors are not registered investment advisors.
Figures computed by MinMaxDoc from historical market data as of Sep 25, 2026; they will drift as markets move.
Figures computed by MinMaxDoc from historical market data as of Sep 25, 2026; they will drift as markets move.