XLK vs VGT: Returns, Drawdowns and Dividends Since 2016
XLK (State Street Technology Select Sector SPDR ETF) and VGT (Vanguard Information Technology ETF) moved almost in lockstep: their daily returns had a correlation of 0.994, where 1 would mean identical. VGT came out ahead, returning 23.2% a year with dividends reinvested from January 2016 to November 2026, against 23.0% for XLK.
Bought on any day and held five years, XLK finished ahead 76% of the time, so the result depends on when you start. Both fell about 34% at their worst, in October 2022.
| Measure | XLK | VGT |
|---|---|---|
| Annual return | 23.0% | 23.2% |
| $10,000 grew to | $93,777 | $95,505 |
| Worst decline | −33.6%Oct 2022 | −35.1%Oct 2022 |
| Volatility Volatility How much the fund's daily returns swing: their standard deviation over this period, annualized with the square root of 252 trading days. | 24.6% | 24.6% |
| Sharpe ratio Sharpe ratio Return above T-bills for each unit of risk: daily returns minus the T-bill ETF BIL, averaged, divided by their standard deviation and annualized. Higher is better. T-bill funds show none. Sharpe ratio calculator | 0.88 | 0.89 |
| 12-month yield 12-month yield Cash dividends with ex-dividend dates in the past 12 months, divided by the latest closing price. | 0.5% | 0.4% |
| Best year | +56.0%2023 | +52.6%2023 |
| Worst year | −27.7%2022 | −29.7%2022 |
| Correlation between them Correlation How closely the two funds' daily returns moved together over this period: 1 means identical every day, 0 means no relation. | 0.994 | |
XLK: State Street Technology Select Sector SPDR ETFVGT: Vanguard Information Technology ETF
Jan 4, 2016 to Nov 4, 2026, dividends reinvested.
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Worst declines
XLK fell 33.6% from Dec 27, 2021 to Oct 12, 2022 and was back at its high on Jun 15, 2023. VGT fell 35.1% from Dec 27, 2021 to Oct 14, 2022 and was back at its high on Nov 20, 2023.
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Year by year
XLK was ahead in 6 of the 11 calendar years.
| Year | XLK | VGT | Ahead (pts) |
|---|---|---|---|
| 2026 (to Nov 4) | +23.0% | +23.1% | Even |
| 2025 | +24.6% | +21.8% | XLK+2.8 |
| 2024 | +21.6% | +29.3% | VGT+7.7 |
| 2023 | +56.0% | +52.6% | XLK+3.4 |
| 2022 | −27.7% | −29.7% | XLK+2.0 |
| 2021 | +34.8% | +30.5% | XLK+4.3 |
| 2020 | +43.6% | +46.0% | VGT+2.4 |
| 2019 | +49.9% | +48.7% | XLK+1.2 |
| 2018 | −1.7% | +2.4% | VGT+4.1 |
| 2017 | +34.3% | +37.0% | VGT+2.8 |
| 2016 (from Jan 4) | +16.5% | +15.5% | XLK+1.0 |
Held for 1, 3 or 5 years: which came out ahead
Buy on any trading day from Jan 4, 2016, hold for a set time, and see which fund ended higher. The periods overlap, so they show how much the start date mattered, not separate results.
| Hold | Days tested | Ahead more often | Median lead (pts) |
|---|---|---|---|
| 1 year | 2,474 | VGT53% | +0.4 |
| 3 years | 1,970 | VGT57% | +2.2 |
| 5 years | 1,466 | XLK76% | +5.0 |
Median lead is the typical gap in total return across all start dates, in percentage points. The latest 5-year hold starts on Oct 27, 2021.
Dividends
Over the past 12 months XLK paid 0.5% of its price in dividends and VGT 0.4%. The returns above already include them, reinvested on each ex-dividend date.
Dividends per share by year
| Year | XLK | VGT |
|---|---|---|
| 2026 (to Nov 4) | $0.62 3 payments | $0.38 3 payments |
| 2025 | $0.78 4 payments | $0.38 4 payments |
| 2024 | $0.76 4 payments | $0.46 4 payments |
| 2023 | $0.73 4 payments | $0.39 4 payments |
| 2022 | $0.65 4 payments | $0.36 4 payments |
| 2021 | $0.56 4 payments | $0.37 4 payments |
| 2020 | $0.60 4 payments | $0.36 4 payments |
| 2019 | $0.53 4 payments | $0.34 4 payments |
| 2018 | $0.50 4 payments | $0.27 4 payments |
| 2017 | $0.44 4 payments | $0.20 4 payments |
| 2016 (from Jan 4) | $0.42 4 payments | $0.20 4 payments |
Per share in today's shares (earlier amounts are restated for share splits), by ex-dividend date.
The two funds
- XLK
- State Street Technology Select Sector SPDR ETF, an ETF launched Dec 22, 1998. FinLab prices start Jan 4, 2016.
- XLK price and signal backtests
- VGT
- Vanguard Information Technology ETF, an ETF launched Jan 30, 2004. FinLab prices start Jan 4, 2016.
- VGT price and signal backtests
More comparisons
Source: FinLab U.S. fund prices, Jan 4, 2016 to Nov 4, 2026, the days both funds traded. Returns use prices adjusted for dividends and splits, before taxes; annual return is compounded.
For research and education. Past returns do not guarantee future results, and this is not investment advice.