IGV vs. MSFT

Last updated Jun 9, 2026

IGV (iShares Expanded Tech-Software Sector ETF) is Technology Equities fund tracking the S&P North American Expanded Technology Software Index, while MSFT (Microsoft Corporation) is a stock. Over the past 10 years, IGV returned 16.44%/yr vs 24.64%/yr for MSFT. A 0.70 correlation means they provide meaningful diversification when combined.

Performance

IGV vs. MSFT - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in iShares Expanded Tech-Software Sector ETF (IGV) and Microsoft Corporation (MSFT). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, IGV achieves a -9.50% return, which is significantly higher than MSFT's -14.48% return. Over the past 10 years, IGV has underperformed MSFT with an annualized return of 16.44%, while MSFT has yielded a comparatively higher 24.64% annualized return.

IGV

• 1D: -0.21%
• 1M: 4.94%
• YTD: -9.50%
• 6M: -12.57%
• 1Y: -9.75%
• 3Y*: 13.14%
• 5Y*: 5.60%
• 10Y*: 16.44%

MSFT

• 1D: -1.18%
• 1M: -0.60%
• YTD: -14.48%
• 6M: -15.77%
• 1Y: -11.77%
• 3Y*: 8.85%
• 5Y*: 11.09%
• 10Y*: 24.64%

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

IGV vs. MSFT - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
IGV iShares Expanded Tech-Software Sector ETF	-9.50%	5.56%	23.41%	58.56%	-35.65%	12.30%	52.86%	34.33%	12.44%	42.16%
MSFT Microsoft Corporation	-14.48%	15.58%	12.93%	58.19%	-28.02%	52.48%	42.53%	57.56%	20.80%	40.73%

Correlation

The correlation between IGV and MSFT is 0.66, which is moderate. They share some common price drivers but move independently often enough to provide real diversification benefit when combined.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	0.66
Correlation (3Y) Calculated over the trailing 3-year period	0.69
Correlation (5Y) Calculated over the trailing 5-year period	0.75
Correlation (10Y) Calculated over the trailing 10-year period	0.77
Correlation (All Time) Calculated using the full available price history since Jul 16, 2001	0.70

The correlation between IGV and MSFT shifts across timeframes, from 0.66 (1 year) to 0.77 (10 years), reflecting how their relationship changes across market environments.

Return for Risk

IGV vs. MSFT — Risk / Return Rank

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

IGV

IGV Risk / Return Rank: 7
IGV Sharpe Ratio Rank: 6
IGV Sortino Ratio Rank: 6
IGV Omega Ratio Rank: 6
IGV Calmar Ratio Rank: 7
IGV Martin Ratio Rank: 7

MSFT

MSFT Risk / Return Rank: 24
MSFT Sharpe Ratio Rank: 21
MSFT Sortino Ratio Rank: 21
MSFT Omega Ratio Rank: 20
MSFT Calmar Ratio Rank: 31
MSFT Martin Ratio Rank: 28

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.

IGV vs. MSFT - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for iShares Expanded Tech-Software Sector ETF (IGV) and Microsoft Corporation (MSFT). 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.

	IGV	MSFT	Difference
Sharpe ratio: Return per unit of total volatility	-0.35	-0.47	+0.12
Sortino ratio: Return per unit of downside risk	-0.31	-0.49	+0.17
Omega ratio: Gain probability vs. loss probability	0.96	0.94	+0.03
Calmar ratio: Return relative to maximum drawdown	-0.27	-0.35	+0.08
Martin ratio: Return relative to average drawdown	-0.56	-0.73	+0.17
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month.

IGV vs. MSFT - Sharpe Ratio Comparison

The current IGV Sharpe Ratio is -0.35, which is comparable to the MSFT Sharpe Ratio of -0.47. The chart below compares the historical Sharpe Ratios of IGV and MSFT, 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

	IGV	MSFT	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	-0.35	-0.47	+0.12
Sharpe Ratio (5Y) Calculated over the trailing 5-year period	0.20	0.42	-0.22
Sharpe Ratio (10Y) Calculated over the trailing 10-year period	0.63	0.91	-0.29
Sharpe Ratio (All Time) Calculated using the full available price history	0.36	0.74	-0.38

Drawdowns

IGV vs. MSFT - Drawdown Comparison

The maximum IGV drawdown since its inception was -63.45%, smaller than the maximum MSFT drawdown of -69.38%. Use the drawdown chart below to compare losses from any high point for IGV and MSFT.

Drawdown Indicators

	IGV	MSFT	Difference
Max Drawdown Largest peak-to-trough decline	-63.45%	-69.38%	+5.93%
Max Drawdown (1Y) Largest decline over 1 year	-36.61%	-33.91%	-2.70%
Max Drawdown (3Y) Largest decline over 3 years	-36.61%	-33.91%	-2.70%
Max Drawdown (5Y) Largest decline over 5 years	-45.85%	-37.15%	-8.70%
Max Drawdown (10Y) Largest decline over 10 years	-45.85%	-37.15%	-8.70%
Current Drawdown Current decline from peak	-18.80%	-23.56%	+4.76%
Average Drawdown Average peak-to-trough decline	-14.45%	-21.78%	+7.33%
Ulcer Index Depth and duration of drawdowns from previous peaks	17.33%	16.13%	+1.20%

Volatility

IGV vs. MSFT - Volatility Comparison

iShares Expanded Tech-Software Sector ETF (IGV) has a higher volatility of 12.20% compared to Microsoft Corporation (MSFT) at 10.25%. This indicates that IGV's price experiences larger fluctuations and is considered to be riskier than MSFT based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	IGV	MSFT	Difference
Volatility (1M) Calculated over the trailing 1-month period	12.20%	10.25%	+1.95%
Volatility (6M) Calculated over the trailing 6-month period	24.65%	22.36%	+2.29%
Volatility (1Y) Calculated over the trailing 1-year period	27.93%	25.31%	+2.62%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	27.90%	26.64%	+1.26%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	26.38%	27.06%	-0.68%

Dividends

IGV vs. MSFT - Dividend Comparison

IGV has not paid dividends to shareholders, while MSFT's dividend yield for the trailing twelve months is around 0.86%.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
IGV iShares Expanded Tech-Software Sector ETF	0.00%	0.00%	0.00%	0.01%	0.01%	0.00%	0.35%	0.02%	0.16%	0.09%	0.82%	0.22%
MSFT Microsoft Corporation	0.86%	0.70%	0.73%	0.74%	1.06%	0.68%	0.94%	1.20%	1.69%	1.86%	2.37%	2.33%

Frequently Asked Questions

Can I hold both IGV and MSFT in my portfolio?

IGV and MSFT have a correlation of 0.66, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, IGV or MSFT?

IGV has higher volatility (12.20%) compared to MSFT (10.25%). In terms of maximum drawdown, IGV dropped -63.45% vs MSFT's -69.38%.

Which has better risk-adjusted returns?

IGV currently has the higher Sharpe Ratio (-0.35 vs -0.47), 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.