What is the fee difference between VOO and XLK?

VOO has an expense ratio of 0.03% and XLK 0.08%, a gap of 0.05 percentage points. On $10,000 invested that is about $3 a year for VOO and roughly $8 for XLK. Both are inexpensive; the difference matters less than the fact that one fund holds the entire large-cap market and the other holds only one sector.

What index does each fund track?

VOO tracks the S&P 500, covering large US companies across all sectors, with 516 holdings. XLK tracks the S&P Technology Select Sector index, which contains only the information technology companies within the S&P 500, giving it 76 holdings. Every XLK stock is therefore also in VOO, but at a much smaller weight.

How much do VOO and XLK overlap?

Five of the ten largest positions are shared: NVIDIA, Apple, Microsoft, Broadcom and Micron. XLK's top ten also includes AMD, Intel, Cisco, Palantir and Lam Research, while VOO's includes Amazon, Alphabet, Meta and Tesla, which are classified outside the technology sector. XLK holds NVIDIA at 14.16% versus 8.08% in VOO.

Which fund pays a higher dividend yield?

VOO yields more at 1.04% compared with 0.41% for XLK. Technology companies typically reinvest earnings rather than pay them out, so a pure tech fund yields little. VOO's yield is supported by the dividend-paying sectors, such as consumer staples, energy and financials, that XLK excludes entirely.

Which fund suits which goal?

VOO suits investors who want a diversified core holding covering the whole US large-cap market at a very low cost. XLK suits investors who have a specific view that technology stocks are set to lead and who accept the concentration and volatility that come with a single-sector fund. XLK is usually a satellite position rather than a core one.

How large and liquid are VOO and XLK?

VOO is one of the largest ETFs in the world at about $1.08 trillion in net assets. XLK holds about $123 billion, which is still very large for a sector fund. Both trade with tight spreads and deep volume. XLK launched in December 1998 and VOO in September 2010.

Are there tax or account considerations?

Both are US-listed equity ETFs. VOO's higher yield means slightly more dividend income each year, which may face US withholding tax for non-US investors. XLK's return is more weighted toward capital gains, usually taxed only on sale. How each is treated depends on your country and account type. Check local guidance or speak to a tax professional.

Can I hold both VOO and XLK?

Yes, but be aware that XLK's stocks are all already in VOO. Adding XLK overweights technology relative to the market and raises your exposure to NVIDIA, Apple and Microsoft, which are already VOO's largest holdings. Some investors do this deliberately as a tech tilt; others prefer to keep VOO alone for balance.

How concentrated is each fund?

XLK is much more concentrated. NVIDIA at 14.16%, Apple at 13.19% and Microsoft at 9.85% add up to about 37% of the fund, with the top ten around 61%. VOO's top three are the same stocks at about 20.8% combined and its top ten near 38%. XLK also holds only 76 stocks against VOO's 516.

VOO vs XLK

Two funds, one decision: we compare cost, performance and what each ETF actually holds in September 2026.

VOO holds all 516 stocks in the S&P 500 for a 0.03% expense ratio, while XLK holds the 76 technology stocks in the S&P Technology Select Sector index for 0.08%. XLK puts 14.16% in NVIDIA and 13.19% in Apple, versus 8.08% and 7.03% in VOO, and yields 0.41% against VOO's 1.04%. VOO suits core investors; XLK suits those wanting a concentrated tech bet. Educational content, not financial advice.

VOO holds all 516 stocks in the S&P 500 for a 0.03% expense ratio, while XLK holds the 76 technology stocks in the S&P Technology Select Sector index for 0.08%. XLK puts 14.16% in NVIDIA and 13.19% in...

Fund Snapshot

Key Fund Metrics

VOO

Metric

XLK

0.03%

Expense Ratio

0.08%

1.04%

Dividend Yield

0.41%

$1.08T

Net Assets

$123.19B

516

Holdings

76

Sep 7, 2010

Inception Date

Dec 16, 1998

S&P 500

Index Tracked

S&P Technology Select Sector

Large Blend

Fund Category

Technology

VOO costs about $5.00 less per year for every $10,000 invested.

Shared Top Holdings

Holding	VOO	XLK
NVDANVIDIA Corporation	8.08%	14.16%
AAPLApple Inc.	7.03%	13.19%
MSFTMicrosoft Corporation	5.70%	9.85%
AVGOBroadcom Inc.	2.65%	4.38%
MUMicron Technology, Inc.	1.63%	4.04%

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Investment Analysis

VOO

Pros

Expense ratio of 0.03%, about $3 a year per $10,000 invested
516 holdings across all 11 sectors, so no single-sector risk
About $1.08 trillion in net assets and a 1.04% dividend yield

Considerations

Technology weight is capped by market share, so less upside if tech leads
Includes slower-growing sectors such as utilities and consumer staples
Top three holdings are still the same tech names that dominate XLK

XLK

Pros

Focused exposure to 76 large US technology companies in one fund
About $123 billion in net assets and trading history since December 1998
Holds Palantir, Cisco and Lam Research, which sit far down VOO's list

Considerations

Expense ratio of 0.08% is more than double VOO's 0.03%
NVIDIA and Apple together make up more than 27% of the fund
Dividend yield of 0.41% is well below VOO's 1.04%

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About VOO and XLK

VOO (VOO)

VOO is Vanguard’s exchange-traded fund designed to track the S&P 500 Index, offering broad exposure to about 500 of the largest publicly traded US companies. It aims to replicate the index’s performance minus fees by holding the same stocks in similar proportions, making it a straightforward, passive way to access large‑cap US equities. Investors commonly use VOO as a core holding for long‑term growth or as a simple building block in a diversified portfolio. It typically offers high liquidity and regular dividend distributions from underlying companies. As with any equity investment, VOO’s value can rise or fall with the market, and past performance is not a guide to future returns. Fees, trading costs and potential tracking error reduce returns slightly. This information is general and educational only and not personalised financial advice — consider your own circumstances or speak to a qualified adviser before investing.

XLK (XLK)

Technology Sector SPDR (XLK) is an exchange‑traded fund designed to give investors broad exposure to the US technology sector by tracking a technology‑focused index. It concentrates on large‑capitalisation companies across software, hardware, semiconductors and IT services, so holdings are often dominated by a handful of industry leaders. The ETF is passively managed, typically has a low expense ratio relative to actively managed funds, and can serve as a straightforward way to gain sector exposure without selecting individual stocks. Investors should be aware of sector concentration risk, sensitivity to interest‑rate changes and valuation swings, and the cyclicality of technology spending. XLK is suitable for those seeking long‑term exposure to technology trends but not as a substitute for a diversified portfolio. This is general information only and not personal advice; values can rise and fall and past performance does not predict future returns.

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