Which Is the Better Tech ETF, Vanguard's VGT or State Street's XLK?
Key takeaways
- Both funds serve as core pillars for investors seeking aggressive growth through the information technology sector.
- Beta measures price volatility relative to the S&P 500; beta is calculated from five-year monthly returns.
- The State Street fund is slightly more affordable with an expense ratio of 0.08%.
Robert Izquierdo, The Motley Fool Thu, May 14, 2026 at 8:47 PM GMT+7 4 min read ^GSPC XLK STT VGT The State Street Technology Select Sector SPDR ETF (NYSEMKT:XLK) offers a concentrated, low-cost play on S&P 500 tech, while the Vanguard Information Technology ETF (NYSEMKT:VGT) provides broader exposure.
Both funds serve as core pillars for investors seeking aggressive growth through the information technology sector. While the State Street fund focuses exclusively on large-cap technology stocks within the S&P 500, the Vanguard fund casts a wider net across the broader U.S. equity market, including small- and mid-cap companies. This difference in scope influences everything from diversification to dividend output.
Beta measures price volatility relative to the S&P 500; beta is calculated from five-year monthly returns. The 1-yr return represents total return over the trailing 12 months. Dividend yield is the trailing-12-month distribution yield.