VYM vs XLK: 14% overlap
Vanguard High Dividend Yield ETF and Technology Select Sector SPDR Fund share 14.4% of their portfolios by weight — computed as Σ min(wA, wB) over every holding both funds own.
You would hold two tickers and get the diversification of 1.9. Two funds that shared nothing would score 2.0; two identical funds score 1.0.
Top shared holdings
VYM and XLK hold 21 of the same securities. The ten contributing most to the overlap figure:
| Holding | in VYM | in XLK | Δ |
|---|---|---|---|
| AVGO | 7.3% | 5.2% | 2.1% |
| CSCO | 1.9% | 3.0% | 1.1% |
| TXN | 1.1% | 1.8% | 0.6% |
| IBM | 1.1% | 1.3% | 0.2% |
| ORCL | 1.0% | 1.4% | 0.3% |
| QCOM | 0.8% | 1.2% | 0.4% |
| ADI | 0.8% | 1.3% | 0.5% |
| DELL | 0.5% | 0.9% | 0.3% |
| ACN | 0.3% | 0.6% | 0.3% |
| NXPI | 0.3% | 0.5% | 0.2% |
Where VYM and XLK differ
Sector weights as a share of each fund, ordered by the size of the gap rather than the size of the sector — two funds that overlap heavily still usually diverge somewhere.
| Sector | VYM | XLK | Δ |
|---|---|---|---|
| Information Technology | 16.7% | 99.9% | −83.2pp |
| Financials | 20.9% | 0.0% | +20.9pp |
| Industrials | 13.2% | 0.0% | +13.2pp |
| Health Care | 13.1% | 0.0% | +13.1pp |
| Energy | 8.5% | 0.0% | +8.5pp |
| Consumer Staples | 8.0% | 0.0% | +8.0pp |
| Consumer Discretionary | 6.4% | 0.0% | +6.4pp |
| Utilities | 5.7% | 0.0% | +5.7pp |
Δ is VYM minus XLK, in percentage points. Sector data is not published by every issuer, so “Unclassified” is a real category rather than a gap in the table.
What each fund holds alone
83.0% of VYM by weight, held in no part of XLK.
80.8% of XLK by weight, held in no part of VYM.
A large count with a small weight is the usual shape: the positions one fund adds are typically its smallest ones.
Concentration and cost
| VYM | XLK | |
|---|---|---|
| Top 10 holdings | 26.0% | 61.3% |
| Positions held | 606 | 76 |
| Cost per $10,000 held, per year | $4 | $8 |
Cost is the expense ratio applied to $10,000; it excludes any brokerage commission, bid-ask spread or tax consequence. Figures are facts about the funds, not a suggestion about which to hold.
Frequently asked
How much do VYM and XLK overlap?
VYM and XLK overlap 14.4% by portfolio weight — largely distinct portfolios. They share 21 holdings. The figure comes from current issuer holdings files (VYM as of 2026-06-30, XLK as of 2026-07-23).
How is the overlap between VYM and XLK calculated?
As the sum of the smaller weight in each fund, over every holding both funds own: Σ min(wA, wB). If VYM holds a stock at 6% and XLK holds the same stock at 4%, 4% counts as shared. The result is bounded between 0% and 100%, and it is computed after looking through any fund-of-funds to the underlying holdings.
Is it redundant to hold both VYM and XLK?
That depends on your goals — we state facts, not advice. At 14.4% overlap, each fund still contributes meaningfully distinct exposure.
What does VYM own that XLK doesn't?
VYM holds 606 positions and XLK holds 76; 585 of VYM's positions don't appear in XLK at all, and they are 83.0% of VYM by weight.
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Related comparisons
Sources: issuer holdings files, VYM as of 2026-06-30, XLK as of 2026-07-23. Weights are fractions of each fund. Diagnostics, not advice.