VGT vs. XLK: Which Broad Tech ETF Is the Better Buy Right Now?

By Katie Brockman – Mar 13, 2026 at 3:37PM ESTKey PointsXLK and VGT both focus on U.S. technology stocks, but VGT holds significantly more companies.XLK comes with a marginally lower expense ratio and a slightly higher dividend yield compared to VGT.Both ETFs have similar risk profiles and top holdings, but XLK has earned marginally higher total returns.The State Street Technology Select Sector SPDR ETF (XLK 0.75%) and the Vanguard Information Technology ETF (VGT 0.86%) are both designed to give investors exposure to the U.S. technology sector, tracking similar slices of the market.This comparison examines their costs, performance, risk, and portfolio makeup to help clarify which ETF may appeal to you based on your priorities.Snapshot (cost & size)MetricXLKVGTIssuerSPDRVanguardExpense ratio0.08%0.09%1-yr return (as of March 13, 2026)29.58%28.70%Dividend yield0.56%0.42%Beta (5Y monthly)1.241.32AUM$87.7 billion$126.5 billionBeta 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.XLK charges a slightly lower fee at 0.08% compared to VGT’s 0.09%, making it a touch more affordable. XLK also offers a marginally higher dividend yield, which may appeal to those seeking a modest income component.Performance & risk comparisonMetricXLKVGTMax drawdown (5 y)-33.56%-35.08%Growth of $1,000 over 5 years$2,088$2,006What's insideVGT seeks to track the performance of the U.S. information technology sector, using both full replication and sampling strategies. With 320 holdings, it offers broad exposure to technology and spans subsectors like electronics, software, and semiconductors. Its largest positions include Nvidia, Apple, and Microsoft.XLK, by contrast, is more concentrated, holding 71 technology-focused stocks. Its top three holdings match those of VGT, but the fund is more selective in its sector coverage.For more guidance on ETF investing, check out the full guide at this link.What this means for investorsXLK and VGT are both tech-focused ETFs that hold stocks from all corners of the industry. The primary difference between them is their level of diversification.VGT holds about 4.5 times as many stocks as XLK, but it also allocates a larger share of assets to its top three holdings. While the two funds share the same top three stocks, they account for 43.32% of VGT’s portfolio, compared to 37.91% for XLK.In other words, while VGT is broader in terms of the number of holdings, it’s slightly more concentrated on mega-cap tech stocks. If Nvidia, Apple, or Microsoft significantly over- or underperform, it could affect VGT more than XLK. While XLK has outperformed VGT in both one- and five-year total returns, VGT’s broader reach provides greater exposure to the tech sector. VGT may be a good fit for those seeking broad access to as many tech stocks as possible, while investors looking for a narrower portfolio with slightly less exposure to mega-cap names might prefer XLK.Read NextMar 13, 2026 •By Jake LerchTech ETFs: VGT Boasts Lower Fees, While IYW Provides More Concentrated Tech ExposureMar 3, 2026 •By Trevor JennewineBuy 3 Vanguard Index Funds to Beat the S&P 500 in the Next Year, According to Wall StreetFeb 17, 2026 •By Chris NeigerThe Smartest Vanguard ETF to Buy With $2,000 Right NowFeb 12, 2026 •By Trevor JennewineBuy 2 Vanguard Index Funds to Beat the S&P 500 in the Next Year, According to Wall StreetFeb 2, 2026 •By David DierkingThe Best Growth ETFs to Invest $1,000 in Right NowFeb 1, 2026 •By David Jagielski, CPACould This Tech-Heavy Vanguard Fund Be Due for a Significant Decline in 2026?About the AuthorKatie Brockman is a contributing writer at The Motley Fool covering retirement, Social Security, and investing fundamentals. Prior to The Motley Fool, Katie held various writing and editing roles at companies ranging from small start-ups to multimillion-dollar brands. Her work has appeared in USA Today, Inc magazine, and other authoritative media outlets. She holds a bachelor’s degree in business administration and management from Illinois Wesleyan University.TMFKatieBrockmanStocks MentionedVanguard Information Technology ETFNYSEMKT: VGT$714.44(-0.86%)-$6.22Select Sector SPDR Trust - State Street Technology Select Sector SPDR ETFNYSEMKT: XLK$136.80(-0.75%)-$1.04*Average returns of all recommendations since inception. Cost basis and return based on previous market day close.