IGM vs. VGT
Compare and contrast key facts about iShares Expanded Tech Sector ETF (IGM) and Vanguard Information Technology ETF (VGT).
IGM and VGT are both exchange-traded funds (ETFs), meaning they are traded on stock exchanges and can be bought and sold throughout the day. IGM is a passively managed fund by iShares that tracks the performance of the S&P North American Technology Sector Index. It was launched on Mar 13, 2001. VGT is a passively managed fund by Vanguard that tracks the performance of the MSCI US Investable Market Information Technology 25/50 Index. It was launched on Jan 26, 2004. Both IGM and VGT are passive ETFs, meaning that they are not actively managed but aim to replicate the performance of the underlying index as closely as possible.
Scroll down to visually compare performance, riskiness, drawdowns, and other indicators and decide which better suits your portfolio: IGM or VGT.
Key characteristics
| IGM | VGT | |
|---|---|---|
| YTD Return | 12.60% | 5.51% |
| 1Y Return | 55.81% | 36.46% |
| 3Y Return (Ann) | 12.95% | 12.37% |
| 5Y Return (Ann) | 20.91% | 20.09% |
| 10Y Return (Ann) | 23.23% | 20.31% |
| Sharpe Ratio | 2.80 | 1.95 |
| Daily Std Dev | 19.72% | 18.44% |
| Max Drawdown | -65.59% | -54.63% |
| Current Drawdown | -3.61% | -3.68% |
Correlation
The correlation between IGM and VGT is 0.97, which is considered to be high. That indicates a strong positive relationship between their price movements. Having highly-correlated positions in a portfolio may signal a lack of diversification, potentially leading to increased risk during market downturns.
Performance
IGM vs. VGT - Performance Comparison
In the year-to-date period, IGM achieves a 12.60% return, which is significantly higher than VGT's 5.51% return. Over the past 10 years, IGM has outperformed VGT with an annualized return of 23.23%, while VGT has yielded a comparatively lower 20.31% annualized return. The chart below displays the growth of a $10,000 investment in both assets, with all prices adjusted for splits and dividends.
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IGM vs. VGT - Expense Ratio Comparison
IGM has a 0.46% expense ratio, which is higher than VGT's 0.10% expense ratio.
Risk-Adjusted Performance
IGM vs. VGT - Risk-Adjusted Performance Comparison
This table presents a comparison of risk-adjusted performance metrics for iShares Expanded Tech Sector ETF (IGM) and Vanguard Information Technology ETF (VGT). 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.
Dividends
IGM vs. VGT - Dividend Comparison
IGM's dividend yield for the trailing twelve months is around 1.74%, more than VGT's 0.71% yield.
| TTM | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 | 2014 | 2013 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
IGM iShares Expanded Tech Sector ETF | 1.74% | 2.37% | 3.16% | 0.97% | 1.93% | 2.99% | 3.45% | 3.42% | 5.40% | 4.72% | 5.25% | 4.66% |
VGT Vanguard Information Technology ETF | 0.71% | 0.65% | 0.91% | 0.64% | 0.82% | 1.11% | 1.29% | 0.99% | 1.31% | 1.28% | 1.12% | 1.05% |
Drawdowns
IGM vs. VGT - Drawdown Comparison
The maximum IGM drawdown since its inception was -65.59%, which is greater than VGT's maximum drawdown of -54.63%. Use the drawdown chart below to compare losses from any high point for IGM and VGT. For additional features, visit the drawdowns tool.
Volatility
IGM vs. VGT - Volatility Comparison
iShares Expanded Tech Sector ETF (IGM) and Vanguard Information Technology ETF (VGT) have volatilities of 6.97% and 6.95%, respectively, indicating that both stocks experience similar levels of price fluctuations. This suggests that the risk associated with both stocks, as measured by volatility, is nearly the same. The chart below showcases a comparison of their rolling one-month volatility.