IYW vs VGT

Quick Verdict

VGT has a lower expense ratio. VGT delivered stronger 1-year returns. VGT offers more diversification with 322 holdings.

Lower Fees: VGTHigher Returns: VGTMore Diversified: VGT

Side-by-Side Comparison

MetricIYWVGTWinner
Expense Ratio0.38%0.09%
AUM$23.3B$146.6B
Dividend Yield0.10%0.38%
Holdings153324
YTD Return+27.18%+28.81%
1Y Return+39.68%+40.78%
3Y Return (annualized)+33.20%+31.78%
5Y Return (annualized)+19.84%+19.33%
Volatility (annualized)24.6%19.6%
Max Drawdown-81.9%-54.8%
Fund FamilyiShares by BlackRock (US)Vanguard (US)
CategoryEquityEquity
InceptionMay 15, 2000Jan 26, 2004

IYW vs VGT Performance

iShares US Technology ETF (IYW) is a ETF from iShares by BlackRock (US) and Vanguard Information Technology ETF (VGT) is a ETF from Vanguard (US). Over the past year IYW returned +39.68% while VGT returned +40.78%. Year to date, IYW is up 27.18% versus a gain of 28.81% for VGT.

Over three years, IYW compounded at +33.20% per year against +31.78% for VGT; over five years the annualized figures are +19.84% and +19.33% respectively. Across the full 23-year window we track, VGT has the edge at +14.36% annualized vs +8.93%. Past performance does not guarantee future results.

Risk: Volatility and Drawdowns

IYW has been the more volatile fund, with annualized monthly volatility of 24.6% compared with 19.6% for VGT. Lower volatility generally means a smoother ride, though it often comes with lower long-run returns.

The deepest peak-to-trough decline in our data was -81.9% for IYW and -54.8% for VGT. Drawdown depth is worth weighing if you expect to sell during market stress rather than ride it out.

The two funds' monthly returns correlate at 0.99. They move almost in lockstep, so holding both mostly duplicates the same exposure.

Fees and Cost Over Time

IYW charges 0.38% per year while VGT charges 0.09%. On a $10,000 position that is $38 vs $9 annually, a gap of $29 per year that compounds over a long holding period. On income, IYW currently yields 0.10% against 0.38% for VGT.

Holdings Overlap

77.8%overlap

IYW and VGT share 121 holdings out of 351 unique holdings combined, representing a 77.8% weight overlap.

High overlap means holding both may not provide much additional diversification.

Top Shared Holdings

StockWeight in IYWWeight in VGTDifference
NVDA12.80%16.09%3.29%
AAPL12.81%14.32%1.51%
MSFT8.56%8.28%0.28%
MUProProPro
AVGOProProPro
AMDProProPro
INTCProProPro
AMATProProPro
LRCXProProPro
KLACProProPro
See all 10 holdings IYW shares with VGT
Exact weights in each fund and the difference, for every overlapping position.
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Frequently Asked Questions

Which is cheaper, IYW or VGT?

IYW has an expense ratio of 0.38% while VGT charges 0.09%. VGT is the cheaper option. On a $10,000 investment, that is $29 per year of difference.

Which performed better, IYW or VGT?

Over the past year IYW returned +39.68% vs +40.78% for VGT, so VGT leads on 1-year performance. Over the longest common window we track (23 years), IYW annualized +8.93% vs +14.36% for VGT. Past performance does not guarantee future results.

Which is riskier, IYW or VGT?

IYW has been the more volatile fund at 24.6% annualized versus 19.6% for VGT. Worst drawdown: IYW -81.9% vs VGT -54.8%.

Should I hold both IYW and VGT?

IYW and VGT have a monthly-return correlation of 0.99, so they move almost identically. Holding both adds little diversification - most investors pick one, usually on fees or the specific index tracked.

What is the holdings overlap between IYW and VGT?

IYW and VGT share 121 common holdings with a 77.8% weight overlap. Combined, they hold 351 unique securities.

Which pays a higher dividend, IYW or VGT?

IYW yields 0.10% while VGT yields 0.38%, so VGT currently pays the higher dividend yield.

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