# XLC alternatives: 8 similar ETFs compared

> ETFs similar to XLC, closest first, with each fund's fee, what it tracks, and returns and worst drops on the same dates as XLC. Updated daily.

The ETFs most like XLC are VOX, ONEQ and QQQM. VOX holds US phone, media, internet and entertainment companies, like XLC.

Written by [the Tactfolio research team](https://tactfolio.com/about/editorial-policy). Fund facts checked October 17, 2026. Prices through October 16, 2026.

## Key points

- 8 funds can stand in for XLC: 1 of the same kind and 7 related funds.
- XLC charges 0.08% a year (about $8 on $10,000).
- VOX moved most like XLC: a daily correlation of 0.98 over about the last five years.
- Returns and drops for each pair use the same dates for both funds.

## 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.

| ETF | How close | Yearly fee | Fee on $10,000 | Tracks |
| --- | --- | --- | --- | --- |
| **XLC** | This fund | 0.08% | $8 | Communication Services Select Sector Index |
| [VOX](https://tactfolio.com/etf/vox.md) | Same kind of fund | 0.09% | $9 | MSCI US Investable Market Communication Services 25/50 Index |
| [ONEQ](https://tactfolio.com/etf/oneq.md) | Related fund | 0.21% | $21 | Nasdaq Composite Index |
| [QQQM](https://tactfolio.com/etf/qqqm.md) | Related fund | 0.15% | $15 | Nasdaq-100 Index |
| [QQQ](https://tactfolio.com/etf/qqq.md) | Related fund | 0.18% | $18 | Nasdaq-100 Index |
| [IYW](https://tactfolio.com/etf/iyw.md) | Related fund | 0.37% | $37 | Russell 1000 Technology RIC 22.5/45 Capped Index |
| [FTEC](https://tactfolio.com/etf/ftec.md) | Related fund | 0.084% | $8.40 | MSCI USA IMI Information Technology 25/50 Index |
| [VGT](https://tactfolio.com/etf/vgt.md) | Related fund | 0.09% | $9 | MSCI US Investable Market Information Technology 25/50 Index |
| [XLK](https://tactfolio.com/etf/xlk.md) | Related fund | 0.08% | $8 | Technology Select Sector Index |

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.

| ETF | Moves with XLC | Per year | XLC per year | Worst drop | XLC worst drop | Since |
| --- | --- | --- | --- | --- | --- | --- |
| [VOX](https://tactfolio.com/etf/vox.md) | 0.98 | 11.0% | 11.1% | −46.8% | −46.7% | June 2018 |
| [ONEQ](https://tactfolio.com/etf/oneq.md) | 0.82 | 16.9% | 11.1% | −35.2% | −46.7% | June 2018 |
| [QQQM](https://tactfolio.com/etf/qqqm.md) | 0.80 | 16.5% | 11.2% | −35.0% | −46.7% | October 2020 |
| [QQQ](https://tactfolio.com/etf/qqq.md) | 0.80 | 19.0% | 11.1% | −35.1% | −46.7% | June 2018 |
| [IYW](https://tactfolio.com/etf/iyw.md) | 0.76 | 23.1% | 11.1% | −39.4% | −46.7% | June 2018 |
| [FTEC](https://tactfolio.com/etf/ftec.md) | 0.71 | 22.2% | 11.1% | −34.9% | −46.7% | June 2018 |
| [VGT](https://tactfolio.com/etf/vgt.md) | 0.71 | 22.5% | 11.1% | −35.1% | −46.7% | June 2018 |
| [XLK](https://tactfolio.com/etf/xlk.md) | 0.69 | 22.8% | 11.1% | −33.6% | −46.7% | June 2018 |

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](https://tactfolio.com/etf/vox.md) 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](https://tactfolio.com/etf/oneq.md) 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](https://tactfolio.com/etf/qqqm.md) 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](https://tactfolio.com/etf/qqq.md) 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](https://tactfolio.com/etf/iyw.md) 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](https://tactfolio.com/etf/ftec.md) 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](https://tactfolio.com/etf/vgt.md) 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](https://tactfolio.com/etf/xlk.md) 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](https://tactfolio.com/etf/vox.md), Vanguard Communication Services ETF (same kind of fund, 0.09% a year)
- **Fidelity:** [ONEQ](https://tactfolio.com/etf/oneq.md), Fidelity Nasdaq Composite Index ETF (related fund, 0.21% a year)
- **Invesco:** [QQQM](https://tactfolio.com/etf/qqqm.md), Invesco NASDAQ 100 ETF (related fund, 0.15% a year)
- **iShares (BlackRock):** [IYW](https://tactfolio.com/etf/iyw.md), 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](https://www.irs.gov/publications/p550).

## 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](https://tactfolio.com/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](https://tactfolio.com/docs/backtests.md) for more on these measures.

## Research and test it

- [S&P 500 index](https://tactfolio.com/learn/sp500-index): The S&P 500 tracks about 500 large US companies. Learn how stocks get in, how the index is weighted, how to invest in it, and how far it has fallen before.
- [What is an ETF](https://tactfolio.com/learn/what-is-an-etf): An ETF is a fund that trades like a stock. Learn how ETFs work, what they cost, the main types, and the risks, with SEC sources.
- [ETF screener](https://tactfolio.com/screener.md): A free ETF screener for 162 US-listed funds. Filter by type, issuer and fee, sort by returns or worst drop, and compare funds side by side.
- [ETF expense ratio](https://tactfolio.com/learn/etf-expense-ratio): What an ETF expense ratio is, how the fund charges it, and how 0.03% vs 1% adds up over 10 and 30 years, with real fund examples.
- [Backtest a portfolio](https://tactfolio.com/trading-tools/backtest-portfolio): Backtest a portfolio of US stocks and ETFs. Enter tickers and shares, pick when to rebalance, and get the results with a link to share.
- [Backtesting](https://tactfolio.com/backtesting): Free backtesting software for stocks, ETFs, and crypto perps.

## Common questions

### What ETF is most similar to XLC?

VOX is the closest. 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. Over about the last five years they moved almost exactly together.

### Is there a cheaper alternative to XLC?

Not among the funds here. XLC charges 0.08% a year, about $8 on $10,000, which is as low as or lower than each alternative listed.

### Is XLC or VOX better?

Neither is better for everyone. From June 2018 to October 2026, XLC returned about 11.1% a year and VOX returned about 11.0% a year. XLC charges 0.08% a year and VOX charges 0.09%. Past returns do not tell you what comes next.

## Sources

- [SPDR (State Street): State Street Communication Services Select Sector SPDR ETF fund page](https://www.ssga.com/us/en/intermediary/etfs/state-street-communication-services-select-sector-spdr-etf-xlc)
- [Vanguard: Vanguard Communication Services ETF fund page](https://investor.vanguard.com/investment-products/etfs/profile/vox)
- [Fidelity: Fidelity Nasdaq Composite Index ETF fund page](https://institutional.fidelity.com/app/proxy/content?literatureURL=%2F9871761.PDF)
- [Invesco: Invesco NASDAQ 100 ETF fund page](https://www.sec.gov/Archives/edgar/data/1378872/000119312525325643/d54028d497k.htm)
- [Invesco: Invesco QQQ Trust, Series 1 fund page](https://www.invesco.com/us/financial-products/etfs/product-detail?audienceType=Investor&ticker=QQQ)
- [iShares (BlackRock): iShares U.S. Technology ETF fund page](https://www.ishares.com/us/products/239522/ishares-u-s-technology-etf)
- [Fidelity: Fidelity MSCI Information Technology Index ETF fund page](https://www.sec.gov/Archives/edgar/data/945908/000094590825000729/filing10088.htm)
- [Vanguard: Vanguard Information Technology ETF fund page](https://investor.vanguard.com/investment-products/etfs/profile/vgt)
- [SPDR (State Street): State Street Technology Select Sector SPDR ETF fund page](https://www.ssga.com/us/en/intermediary/etfs/state-street-technology-select-sector-spdr-etf-xlk)
- [IRS Publication 550: wash sales](https://www.irs.gov/publications/p550)

> Not financial advice. Tactfolio is a research and automation tool. It is not a broker or a financial adviser. This page is for education only. Backtests are hypothetical. They show how rules would have done on past prices, not how they will do. All investing involves risk, including losing the money you put in.