ETF Versus

VIG vs XLK

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

Last updated: 2026-04-02

VIG Vanguard

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.

AUM: $97.2B ER: 0.04% Yield: 1.60% Since: Apr 21, 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

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

Metric VIG XLK
Expense Ratio 0.04% 0.08%
Dividend Yield 1.6% 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
VIG +43.7%
XLK +95.1%

Performance Comparison

Period VIG XLK Difference
1 Month -5.05% -3.32% -1.73%
3 Months -2.23% -6.51% +4.28%
6 Months -0.97% -5.23% +4.26%
YTD -2.23% -6.51% +4.28%
1 Year +11.38% +29.73% -18.35%
3 Years +39.10% +78.96% -39.86%
5 Years +43.71% +95.13% -51.42%

Fee Impact Over Time

Estimated fee cost difference assuming 8% annual returns

Investment Period VIG 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 VIG XLK
Annualized Volatility 14.3% 24.7%
Max Drawdown -21.5% -34.0%
Sharpe Ratio 0.27 0.49

Dividend Comparison

Metric VIG XLK
Annual Dividend (per share) $3.45 $0.77
Dividend Yield 1.60% 0.57%
Distribution Frequency Quarterly Quarterly

Top Holdings

3 of top 10 holdings overlap (30% overlap in top holdings)

VIG Top Holdings

NameWeight
Broadcom Inc.AVGO5.92%
Apple Inc.AAPL3.89%
Eli Lilly and CompanyLLY3.70%
Microsoft CorporationMSFT3.45%
JPMorgan Chase & Co.JPM3.42%
Exxon Mobil CorporationXOM2.87%
Johnson & JohnsonJNJ2.65%
Walmart Inc.WMT2.48%
Visa Inc.V2.23%
Costco Wholesale CorporationCOST1.98%

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 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.

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