GARP vs. IYW

Last updated Jun 4, 2026

GARP (iShares MSCI USA Quality GARP ETF) and IYW (iShares U.S. Technology ETF) are both exchange-traded funds - GARP is a Large Cap Growth Equities fund tracking the MSCI USA Quality GARP Select Index, while IYW is a Technology Equities fund tracking the Russell 1000 Technology RIC 22.5/45 Capped Index. Both are passively managed. Over the past 5 years, GARP returned 20.26%/yr vs 22.87%/yr for IYW. Their correlation of 0.92 suggests significant overlap in exposure. GARP charges 0.15%/yr vs 0.38%/yr for IYW.

Performance

GARP vs. IYW - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in iShares MSCI USA Quality GARP ETF (GARP) and iShares U.S. Technology ETF (IYW). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, GARP achieves a 21.29% return, which is significantly lower than IYW's 29.03% return.

GARP

• 1D: -0.72%
• 1M: 11.92%
• YTD: 21.29%
• 6M: 21.80%
• 1Y: 43.57%
• 3Y*: 33.60%
• 5Y*: 20.26%
• 10Y*: —

IYW

• 1D: -0.92%
• 1M: 16.53%
• YTD: 29.03%
• 6M: 28.22%
• 1Y: 59.52%
• 3Y*: 35.24%
• 5Y*: 22.87%
• 10Y*: 26.11%

*Multi-year figures are annualized to reflect compound growth (CAGR)

GARP vs. IYW - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020
GARP iShares MSCI USA Quality GARP ETF	21.29%	21.49%	37.42%	42.86%	-26.75%	27.99%	26.51%
IYW iShares U.S. Technology ETF	29.03%	25.38%	30.25%	65.44%	-34.83%	35.44%	39.32%

Correlation

The correlation between GARP and IYW is 0.91, indicating a strong positive relationship between their price movements. Combining them offers limited diversification - they tend to fall together during downturns.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	0.91
Correlation (3Y) Calculated over the trailing 3-year period	0.94
Correlation (5Y) Calculated over the trailing 5-year period	0.95
Correlation (All Time) Calculated using the full available price history since Jan 17, 2020	0.92

The correlation between GARP and IYW has been stable across timeframes, ranging from 0.91 to 0.95 - a consistent structural relationship.

Return for Risk

GARP vs. IYW — Risk / Return Rank

Compare risk-adjusted metric ranks to identify better-performing investments over the past 12 months.

GARP

GARP Risk / Return Rank: 68
GARP Sharpe Ratio Rank: 73
GARP Sortino Ratio Rank: 68
GARP Omega Ratio Rank: 67
GARP Calmar Ratio Rank: 63
GARP Martin Ratio Rank: 68

IYW

IYW Risk / Return Rank: 75
IYW Sharpe Ratio Rank: 87
IYW Sortino Ratio Rank: 81
IYW Omega Ratio Rank: 80
IYW Calmar Ratio Rank: 66
IYW Martin Ratio Rank: 60

The rank (0–100) shows how this investment's returns compare to the risk taken. Higher = better. Based on the past 12 months of data, combining Sharpe, Sortino, and other metrics used by quantitative funds and institutional investors.

GARP vs. IYW - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for iShares MSCI USA Quality GARP ETF (GARP) and iShares U.S. Technology ETF (IYW). Risk-adjusted metrics are performance indicators that assess an investment's returns in relation to its risk, enabling a more accurate comparison of different investment options.

	GARP	IYW	Difference
Sharpe ratio Return per unit of total volatility	2.45	2.98	-0.53
Sortino ratio Return per unit of downside risk	3.18	3.70	-0.52
Omega ratio Gain probability vs. loss probability	1.41	1.48	-0.07
Calmar ratio Return relative to maximum drawdown	3.20	3.36	-0.16
Martin ratio Return relative to average drawdown	12.85	11.00	+1.85
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month.

GARP vs. IYW - Sharpe Ratio Comparison

The current GARP Sharpe Ratio is 2.45, which is comparable to the IYW Sharpe Ratio of 2.98. The chart below compares the historical Sharpe Ratios of GARP and IYW, calculated using daily returns over the previous 12 months. A higher Sharpe Ratio indicates better risk-adjusted performance relative to the risk-free rate.

Sharpe Ratios by Period

	GARP	IYW	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	2.45	2.98	-0.53
Sharpe Ratio (5Y) Calculated over the trailing 5-year period	0.93	0.89	+0.04
Sharpe Ratio (10Y) Calculated over the trailing 10-year period	—	1.04	—
Sharpe Ratio (All Time) Calculated using the full available price history	0.90	0.35	+0.54

Drawdowns

GARP vs. IYW - Drawdown Comparison

The maximum GARP drawdown since its inception was -31.34%, smaller than the maximum IYW drawdown of -81.90%. Use the drawdown chart below to compare losses from any high point for GARP and IYW.

Drawdown Indicators

	GARP	IYW	Difference
Max Drawdown Largest peak-to-trough decline	-31.34%	-81.90%	+50.56%
Max Drawdown (1Y) Largest decline over 1 year	-13.69%	-17.81%	+4.12%
Max Drawdown (3Y) Largest decline over 3 years	-23.73%	-26.47%	+2.74%
Max Drawdown (5Y) Largest decline over 5 years	-30.61%	-39.44%	+8.83%
Max Drawdown (10Y) Largest decline over 10 years	—	-39.44%	—
Current Drawdown Current decline from peak	-0.73%	-0.92%	+0.19%
Average Drawdown Average peak-to-trough decline	-7.36%	-34.66%	+27.30%
Ulcer Index Depth and duration of drawdowns from previous peaks	3.40%	5.43%	-2.03%

Volatility

GARP vs. IYW - Volatility Comparison

The current volatility for iShares MSCI USA Quality GARP ETF (GARP) is 5.03%, while iShares U.S. Technology ETF (IYW) has a volatility of 6.30%. This indicates that GARP experiences smaller price fluctuations and is considered to be less risky than IYW based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	GARP	IYW	Difference
Volatility (1M) Calculated over the trailing 1-month period	5.03%	6.30%	-1.27%
Volatility (6M) Calculated over the trailing 6-month period	13.89%	15.85%	-1.96%
Volatility (1Y) Calculated over the trailing 1-year period	17.89%	20.09%	-2.20%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	21.97%	25.87%	-3.90%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	23.89%	25.09%	-1.20%

GARP vs. IYW - Expense Ratio Comparison

GARP has a 0.15% expense ratio, which is lower than IYW's 0.38% expense ratio.

Dividends

GARP vs. IYW - Dividend Comparison

GARP's dividend yield for the trailing twelve months is around 0.25%, more than IYW's 0.11% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
GARP iShares MSCI USA Quality GARP ETF	0.25%	0.31%	0.38%	0.75%	1.85%	0.67%	0.75%	0.00%	0.00%	0.00%	0.00%	0.00%
IYW iShares U.S. Technology ETF	0.11%	0.14%	0.21%	0.34%	0.50%	0.31%	0.56%	0.72%	0.92%	0.82%	1.14%	1.12%

Frequently Asked Questions

Can I hold both GARP and IYW in my portfolio?

With a correlation of 0.91, GARP and IYW move almost identically. Holding both adds very little diversification - you're essentially doubling your position in the same market segment. Choosing one is usually more capital-efficient.

Which is riskier, GARP or IYW?

IYW has higher volatility (6.30%) compared to GARP (5.03%). In terms of maximum drawdown, GARP dropped -31.34% vs IYW's -81.90%.

Which ETF is better, GARP or IYW?

On 5-year performance, IYW leads with 22.87% vs 20.26% for GARP. On fees, GARP is cheaper at 0.15% per year. On volatility, GARP has been the lower-risk option at 5.03%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, GARP or IYW?

Over the 5-year period, IYW has performed better with a 22.87% return vs 20.26%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, GARP or IYW?

GARP is cheaper with a 0.15% expense ratio, compared with 0.38% for IYW.

Which ETF pays a higher dividend yield, GARP or IYW?

GARP has the higher dividend yield at 0.25%, compared with 0.11% for IYW.

What is the main difference between GARP and IYW?

GARP is categorized as Large Cap Growth Equities, while IYW is Technology Equities. GARP tracks MSCI USA Quality GARP Select Index, while IYW tracks Russell 1000 Technology RIC 22.5/45 Capped Index. Their fees differ too: 0.15% for GARP and 0.38% for IYW.

Which has better risk-adjusted returns?

IYW currently has the higher Sharpe Ratio (2.98 vs 2.45), meaning it's delivered slightly more return per unit of risk over the trailing 12 months. However, this ranking shifts over time - use the Risk/Return Score above for a more comprehensive view that combines Sharpe, Sortino, and other measures used by quantitative funds.