XLC alternatives and similar ETFs

XLC alternatives at a glance#

Each fund below can stand in for XLC, closest first. “Same kind” funds hold the same kind of stocks through a different index. “Related” funds make a different bet that often moves the same way.

Fees come from each fund company, checked on the dates shown on each fund’s page.

How XLC and its alternatives did over the same dates#

Each row measures the alternative and XLC on the days both traded, so neither gets a head start. Correlation shows how closely their daily moves matched over about the last five years. A value of 1 means they always moved together.

Prices through October 16, 2026. Figures use daily closing prices adjusted for splits, with dividends reinvested. They do not include taxes or the cost of buying and selling. Past results do not tell you what will happen next.

Each XLC alternative, compared#

VOX: Vanguard Communication Services ETF#

VOX also holds US phone, media, internet and entertainment companies. It tracks the MSCI US Investable Market Communication Services 25/50 Index, while XLC tracks the Communication Services Select Sector Index.

It charges 0.09% a year, about $9 on $10,000, against $8 for XLC. It held 111 stocks, against 22 for XLC.

From June 2018 to October 2026, VOX returned about 11.0% a year and XLC returned about 11.1% a year. Over about the last five years they moved almost exactly together (correlation 0.98).

Read the VOX fund page for its returns by year and worst drop.

ONEQ: Fidelity Nasdaq Composite Index ETF#

ONEQ is a looser match. It holds the 100 biggest companies on the Nasdaq outside finance, many of them in technology, while XLC holds US phone, media, internet and entertainment companies.

It charges 0.21% a year, about $21 on $10,000, against $8 for XLC. It held 1,032 stocks, against 22 for XLC.

From June 2018 to October 2026, ONEQ returned about 16.9% a year and XLC returned about 11.1% a year. Over about the last five years they often moved together, but not always (correlation 0.82).

Read the ONEQ fund page for its returns by year and worst drop.

QQQM: Invesco NASDAQ 100 ETF#

QQQM is a looser match. It holds the 100 biggest companies on the Nasdaq outside finance, many of them in technology, while XLC holds US phone, media, internet and entertainment companies.

It charges 0.15% a year, about $15 on $10,000, against $8 for XLC.

From October 2020 to October 2026, QQQM returned about 16.5% a year and XLC returned about 11.2% a year. Over about the last five years they often moved together, but not always (correlation 0.80).

Read the QQQM fund page for its returns by year and worst drop.

QQQ: Invesco QQQ Trust, Series 1#

QQQ is a looser match. It holds the 100 biggest companies on the Nasdaq outside finance, many of them in technology, while XLC holds US phone, media, internet and entertainment companies.

It charges 0.18% a year, about $18 on $10,000, against $8 for XLC.

From June 2018 to October 2026, QQQ returned about 19.0% a year and XLC returned about 11.1% a year. Over about the last five years they often moved together, but not always (correlation 0.80).

Read the QQQ fund page for its returns by year and worst drop.

IYW: iShares U.S. Technology ETF#

IYW is a looser match. It holds US technology companies, such as makers of chips, software and computers, while XLC holds US phone, media, internet and entertainment companies.

It charges 0.37% a year, about $37 on $10,000, against $8 for XLC. It held 148 stocks, against 22 for XLC.

From June 2018 to October 2026, IYW returned about 23.1% a year and XLC returned about 11.1% a year. Over about the last five years they often moved together, but not always (correlation 0.76).

Read the IYW fund page for its returns by year and worst drop.

FTEC: Fidelity MSCI Information Technology Index ETF#

FTEC is a looser match. It holds US technology companies, such as makers of chips, software and computers, while XLC holds US phone, media, internet and entertainment companies.

It charges 0.084% a year, about $8.40 on $10,000, against $8 for XLC. It held 282 stocks, against 22 for XLC.

From June 2018 to October 2026, FTEC returned about 22.2% a year and XLC returned about 11.1% a year. Over about the last five years they often moved together, but not always (correlation 0.71).

Read the FTEC fund page for its returns by year and worst drop.

VGT: Vanguard Information Technology ETF#

VGT is a looser match. It holds US technology companies, such as makers of chips, software and computers, while XLC holds US phone, media, internet and entertainment companies.

It charges 0.09% a year, about $9 on $10,000, against $8 for XLC. It held 318 stocks, against 22 for XLC.

From June 2018 to October 2026, VGT returned about 22.5% a year and XLC returned about 11.1% a year. Over about the last five years they often moved together, but not always (correlation 0.71).

Read the VGT fund page for its returns by year and worst drop.

XLK: State Street Technology Select Sector SPDR ETF#

XLK is a looser match. It holds US technology companies, such as makers of chips, software and computers, while XLC holds US phone, media, internet and entertainment companies.

It charges 0.08% a year, about $8 on $10,000, against $8 for XLC. It held 75 stocks, against 22 for XLC.

From June 2018 to October 2026, XLK returned about 22.8% a year and XLC returned about 11.1% a year. Over about the last five years they often moved together, but not always (correlation 0.69).

Read the XLK fund page for its returns by year and worst drop.

XLC versions from other fund companies#

Some people keep all their funds with one company. Here is the closest fund to XLC from each other company on this page:

• Vanguard: VOX, Vanguard Communication Services ETF (same kind of fund, 0.09% a year)
• Fidelity: ONEQ, Fidelity Nasdaq Composite Index ETF (related fund, 0.21% a year)
• Invesco: QQQM, Invesco NASDAQ 100 ETF (related fund, 0.15% a year)
• iShares (BlackRock): IYW, iShares U.S. Technology ETF (related fund, 0.37% a year)

Most brokers let you buy any ETF, whoever runs it. Mutual fund versions, such as a fund company’s index mutual fund, are not listed here.

How to choose between XLC and its alternatives#

• What it tracks. A fund on the same index holds the same stocks. A different index can mean different weights, more or fewer holdings, or a different mix.
• The fee. The difference is often small. On $10,000, XLC costs about $8 a year.
• History. An older fund has been through more bad markets, so you can see how far it fell.
• What you already own. Two funds that move together add little variety. A fund with a low correlation behaves more on its own.

Swapping XLC to harvest a tax loss#

Some investors sell a fund at a loss to lower their taxes, then buy a similar fund so they stay invested. This is called tax-loss harvesting.

The IRS wash sale rule blocks the loss if you buy a “substantially identical” security within 30 days before or after the sale. The IRS has not said exactly when two funds count. Funds on the same index are more likely to. Funds on a different index, such as VOX, ONEQ or QQQM, are less likely to.

Ask a tax professional before you rely on this. Read the IRS rules in Publication 550.

Test XLC and its alternatives in a backtest#

Tactfolio is a platform where you build rules-based investing strategies, backtest them on decades of real prices, share them, and run them automatically in your own Alpaca account. Open the builder, add XLC and VOX, and see how each would have done on the same dates, or how a mix of both would have done.

The details#

Alternatives are picked from facts, not from returns. First come funds that track the same index as XLC. Then come funds that hold the same kind of stocks through another index. Last come funds from a close category that make a different bet. Leveraged funds are only listed as alternatives to other leveraged funds.

Within each group, the funds whose daily returns moved most like XLC over about the last five years come first. Returns and worst drops use Tactfolio’s stored daily prices, adjusted for splits, with dividends reinvested. Each alternative is measured with XLC only on days both traded. Read what a backtest simulates for more on these measures.