VGT vs XLK: Which ETF Is Better in 2026?
Short answer
VGT (Vanguard Information Technology ETF) tracks MSCI US IMI Information Technology 25/50 at 0.09%; XLK (Technology Select Sector SPDR Fund) tracks Technology Select Sector at 0.09%. They give you different exposure, so pick by what you want to own: VGT for MSCI US IMI Information Technology 25/50, XLK for Technology Select Sector. Neither is universally better.
VGT vs XLK at a glance
| VGT | XLK | |
|---|---|---|
| Fund | Vanguard Information Technology ETF | Technology Select Sector SPDR Fund |
| Tracks | MSCI US IMI Information Technology 25/50 | Technology Select Sector |
| Expense ratio | 0.09% | 0.09% |
| Dividend yield | ~0.6% | ~0.6% |
| AUM | ~$95 billion | ~$70 billion |
| Top holding | MSFT | MSFT |
| Issuer | Vanguard | State Street SPDR |
Approximate as of early 2026; verify with each issuer.
What is VGT?
Tracks the MSCI US Information Technology sector. Cheapest cost vehicle for sector-tech exposure. Excludes Amazon, Alphabet, and Meta because they're classified as Consumer Discretionary or Communication Services, not IT.
What is XLK?
Tracks the Technology Select Sector of the S&P 500. Top three names (Apple, Microsoft, NVIDIA) routinely account for 40%+ of the fund. Like VGT, excludes Amazon, Alphabet, and Meta under sector classification.
VGT or XLK: which should you pick?
- Pick VGT if you want MSCI US IMI Information Technology 25/50 exposure at 0.09%.
- Pick XLK if you want Technology Select Sector exposure at 0.09%.
- Overlap: they share top holdings (MSFT, NVDA, AAPL, AVGO, ORCL), so owning both adds less diversification than it appears.
- Cost: 0.09% vs 0.09%, a small but compounding difference.
The bottom line: VGT vs XLK
VGT (MSCI US IMI Information Technology 25/50) and XLK (Technology Select Sector) give you different exposure, so pick by what you want to own, not by which is "better". They overlap heavily, so owning both mostly doubles a fee. Walnut can show the overlap against your real portfolio before you decide.
Build a portfolio around VGT with Walnut
Walnut connects your real brokerage so you can see how VGT and XLK overlap with what you already own, analyze either by chatting through Claude or ChatGPT, and place any trade yourself.
FAQ
What is the difference between VGT and XLK?
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VGT tracks MSCI US IMI Information Technology 25/50 (0.09% expense ratio); XLK tracks Technology Select Sector (0.09%). They track different indexes, so they give you different exposure.
Is VGT or XLK cheaper?
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VGT charges 0.09% and XLK charges 0.09% as of early 2026. Over decades the cheaper fund keeps more of your return, but verify current figures with each issuer.
Do VGT and XLK hold the same stocks?
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They overlap meaningfully: shared top holdings include MSFT, NVDA, AAPL, AVGO, ORCL, CRM. Owning both can mean less diversification than it looks.
Which has a higher dividend yield, VGT or XLK?
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VGT yields about ~0.6% and XLK about ~0.6% (early 2026, approximate). If income matters, that gap is one input, but total return and cost matter more for most long-term investors.
Should you own both VGT and XLK?
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Often not, because they overlap heavily (MSFT, NVDA, AAPL, AVGO and more), so holding both adds cost without much extra diversification. Walnut can show the overlap against your real portfolio.
Walnut is informational, not investment advice. ETF figures are approximations stamped to early 2026; verify current data with each issuer before deciding. Nothing here is a recommendation.