IGV vs. VWO

Last updated Jun 9, 2026

IGV (iShares Expanded Tech-Software Sector ETF) and VWO (Vanguard FTSE Emerging Markets ETF) are both exchange-traded funds - IGV is a Technology Equities fund tracking the S&P North American Expanded Technology Software Index, while VWO is a Emerging Markets Equities fund tracking the FTSE Emerging Index. Both are passively managed. Over the past 10 years, IGV returned 16.44%/yr vs 8.60%/yr for VWO. A 0.60 correlation means they provide meaningful diversification when combined. IGV charges 0.39%/yr vs 0.08%/yr for VWO.

Performance

IGV vs. VWO - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in iShares Expanded Tech-Software Sector ETF (IGV) and Vanguard FTSE Emerging Markets ETF (VWO). 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 lower than VWO's 8.50% return. Over the past 10 years, IGV has outperformed VWO with an annualized return of 16.44%, while VWO has yielded a comparatively lower 8.60% 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%

VWO

• 1D: 0.52%
• 1M: -3.65%
• YTD: 8.50%
• 6M: 9.73%
• 1Y: 24.29%
• 3Y*: 16.22%
• 5Y*: 4.65%
• 10Y*: 8.60%

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

IGV vs. VWO - 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%
VWO Vanguard FTSE Emerging Markets ETF	8.50%	25.60%	10.59%	9.25%	-17.98%	1.26%	15.17%	20.75%	-14.76%	31.49%

Correlation

The correlation between IGV and VWO is 0.38, which is low. Their price movements are largely independent, making them effective diversification partners.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	0.38
Correlation (3Y) Calculated over the trailing 3-year period	0.43
Correlation (5Y) Calculated over the trailing 5-year period	0.50
Correlation (10Y) Calculated over the trailing 10-year period	0.53
Correlation (All Time) Calculated using the full available price history since Mar 11, 2005	0.60

Over the past year, the correlation between IGV and VWO has dropped to 0.38 - well below their long-term average of 0.60, suggesting their price drivers have been diverging.

IGV vs. VWO - Sectors Allocation Comparison

Sectors	IGV	VWO
Technology	89.2%	29.6%
Communication Services	8.6%	7.1%
Financial Services	1.8%	19.5%
Consumer Cyclical	0.3%	10.7%
Industrials	0.2%	8.0%
Basic Materials	-	8.0%
Consumer Defensive	-	3.7%
Energy	-	4.6%
Healthcare	-	3.9%
Real Estate	-	2.2%
Utilities	-	2.9%

Return for Risk

IGV vs. VWO — 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

VWO

VWO Risk / Return Rank: 49
VWO Sharpe Ratio Rank: 47
VWO Sortino Ratio Rank: 47
VWO Omega Ratio Rank: 50
VWO Calmar Ratio Rank: 49
VWO Martin Ratio Rank: 51

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. VWO - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for iShares Expanded Tech-Software Sector ETF (IGV) and Vanguard FTSE Emerging Markets ETF (VWO). 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	VWO	Difference
Sharpe ratio: Return per unit of total volatility	-0.35	1.49	-1.84
Sortino ratio: Return per unit of downside risk	-0.31	2.08	-2.40
Omega ratio: Gain probability vs. loss probability	0.96	1.28	-0.32
Calmar ratio: Return relative to maximum drawdown	-0.27	2.18	-2.45
Martin ratio: Return relative to average drawdown	-0.56	7.79	-8.36
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. VWO - Sharpe Ratio Comparison

The current IGV Sharpe Ratio is -0.35, which is lower than the VWO Sharpe Ratio of 1.49. The chart below compares the historical Sharpe Ratios of IGV and VWO, 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	VWO	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	-0.35	1.49	-1.84
Sharpe Ratio (5Y) Calculated over the trailing 5-year period	0.20	0.27	-0.07
Sharpe Ratio (10Y) Calculated over the trailing 10-year period	0.63	0.45	+0.18
Sharpe Ratio (All Time) Calculated using the full available price history	0.36	0.26	+0.10

Drawdowns

IGV vs. VWO - Drawdown Comparison

The maximum IGV drawdown since its inception was -63.45%, smaller than the maximum VWO drawdown of -67.68%. Use the drawdown chart below to compare losses from any high point for IGV and VWO.

Drawdown Indicators

	IGV	VWO	Difference
Max Drawdown Largest peak-to-trough decline	-63.45%	-67.68%	+4.23%
Max Drawdown (1Y) Largest decline over 1 year	-36.61%	-11.17%	-25.44%
Max Drawdown (3Y) Largest decline over 3 years	-36.61%	-17.37%	-19.24%
Max Drawdown (5Y) Largest decline over 5 years	-45.85%	-32.60%	-13.25%
Max Drawdown (10Y) Largest decline over 10 years	-45.85%	-36.39%	-9.46%
Current Drawdown Current decline from peak	-18.80%	-4.67%	-14.13%
Average Drawdown Average peak-to-trough decline	-14.45%	-15.81%	+1.36%
Ulcer Index Depth and duration of drawdowns from previous peaks	17.33%	3.12%	+14.21%

Volatility

IGV vs. VWO - Volatility Comparison

iShares Expanded Tech-Software Sector ETF (IGV) has a higher volatility of 12.20% compared to Vanguard FTSE Emerging Markets ETF (VWO) at 6.29%. This indicates that IGV's price experiences larger fluctuations and is considered to be riskier than VWO based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	IGV	VWO	Difference
Volatility (1M) Calculated over the trailing 1-month period	12.20%	6.29%	+5.91%
Volatility (6M) Calculated over the trailing 6-month period	24.65%	13.80%	+10.85%
Volatility (1Y) Calculated over the trailing 1-year period	27.93%	16.37%	+11.56%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	27.90%	17.45%	+10.45%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	26.38%	19.23%	+7.15%

IGV vs. VWO - Expense Ratio Comparison

IGV has a 0.39% expense ratio, which is higher than VWO's 0.08% expense ratio.

Dividends

IGV vs. VWO - Dividend Comparison

IGV has not paid dividends to shareholders, while VWO's dividend yield for the trailing twelve months is around 2.49%.

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%
VWO Vanguard FTSE Emerging Markets ETF	2.49%	2.79%	3.20%	3.52%	4.11%	2.63%	1.91%	3.23%	2.88%	2.30%	2.52%	3.26%

Frequently Asked Questions

Can I hold both IGV and VWO in my portfolio?

IGV and VWO have a correlation of 0.38, 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 VWO?

IGV has higher volatility (12.20%) compared to VWO (6.29%). In terms of maximum drawdown, IGV dropped -63.45% vs VWO's -67.68%.

Which ETF is better, IGV or VWO?

On 10-year performance, IGV leads with 16.44% vs 8.60% for VWO. On fees, VWO is cheaper at 0.08% per year. On volatility, VWO has been the lower-risk option at 6.29%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, IGV or VWO?

Over the 10-year period, IGV has performed better with a 16.44% return vs 8.60%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, IGV or VWO?

VWO is cheaper with a 0.08% expense ratio, compared with 0.39% for IGV.

Which ETF pays a higher dividend yield, IGV or VWO?

VWO has the higher dividend yield at 2.49%, compared with 0.00% for IGV.

What is the main difference between IGV and VWO?

IGV is categorized as Technology Equities, while VWO is Emerging Markets Equities. IGV tracks S&P North American Expanded Technology Software Index, while VWO tracks FTSE Emerging Index. They also come from different issuers: iShares and Vanguard. Their fees differ too: 0.39% for IGV and 0.08% for VWO.

Which has better risk-adjusted returns?

VWO currently has the higher Sharpe Ratio (1.49 vs -0.35), 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.