State Street XLK ETF outperforms Vanguard VGT ETF in recent years, despite holding slightly fewer tech stocks. Both have significant exposure to Nvidia, Apple, and Microsoft. XLK has lower expenses and higher returns over the past year and five years.

XLK and VGT both target U.S. tech giants but differ in assets and returns. XLK tracks the S&P 500 tech sector, while VGT follows the MSCI US Investable Market Information Technology 25/50 Index. Investors should consider cost, performance, and holdings when choosing.

XLK and VGT offer similar pricing and yields, with XLK slightly cheaper. XLK has a 1-year return of 21.49% and AUM of $92.8 billion, while VGT has an 18.28% return and $130.0 billion AUM. Both ETFs have beta values over 1.

VGT holds over 320 stocks with top holdings in Nvidia, Apple, and Microsoft. XLK is more concentrated with about 70 holdings and similar top positions. Both focus on technology giants, outperforming the S&P 500 recently.

VGT may seem more diversified, but top tech holdings dominate. Both ETFs have a significant allocation to Nvidia, Apple, and Microsoft, raising concerns about the sustainability of the tech rally. Consider factors like expense ratio, AUM, and returns when investing in ETFs.

Read more at Yahoo Finance: Here’s Why State Street’s Tech ETF Has The Edge