Which Is the Better Tech ETF for Artificial Intelligence (AI) Stocks, State Street’s XLK or Vanguard’s VGT?
Publish Date: 2026-06-15 13:25:00
Source Domain: www.theglobeandmail.com
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The State Street Technology Select Sector SPDR ETF (XLK) offers a more concentrated portfolio of 72 tech holdings mainly within the S&P 500, compared to the 310 positions in the Vanguard Information Technology ETF (VGT).
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VGT has a slightly higher expense ratio of 0.09% versus XLK’s 0.08% and a lower trailing-12-month dividend yield (0.30% vs. 0.40%).
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XLK has outperformed VGT with higher 1-year total returns and better 5-year growth.
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XLK provides concentrated exposure to major tech giants such as Nvidia, Apple, and Microsoft, while VGT offers broader diversification across hundreds of smaller firms.
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Both funds allow investors to access growth in artificial intelligence within the information technology sector; the choice between them hinges on an investor’s preference between more concentrated exposure to industry leaders or a broader market reach with diversified smaller firms.
