IGV vs. XSW

Last updated Jul 7, 2026

IGV (iShares Expanded Tech-Software Sector ETF) and XSW (SPDR S&P Software & Services ETF) are both Technology Equities funds - IGV tracks the S&P North American Expanded Technology Software Index while XSW tracks the S&P Software & Services Select Industry Index. Both are passively managed. Over the past 10 years, IGV returned 16.11%/yr vs 13.56%/yr for XSW. Their correlation of 0.86 suggests significant overlap in exposure. IGV charges 0.39%/yr vs 0.35%/yr for XSW.

Performance

IGV vs. XSW - Performance Comparison

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

Returns By Period

In the year-to-date period, IGV achieves a -10.30% return, which is significantly lower than XSW's -3.95% return. Over the past 10 years, IGV has outperformed XSW with an annualized return of 16.11%, while XSW has yielded a comparatively lower 13.56% annualized return.

IGV

• 1D: 1.30%
• 1M: -1.09%
• 6M: -8.51%
• YTD: -10.30%
• 1Y: -14.80%
• 3Y*: 11.74%
• 5Y*: 3.47%
• 10Y*: 16.11%

XSW

• 1D: 1.86%
• 1M: 6.85%
• 6M: -4.07%
• YTD: -3.95%
• 1Y: -8.14%
• 3Y*: 11.01%
• 5Y*: 0.96%
• 10Y*: 13.56%

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

IGV vs. XSW - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
IGV iShares Expanded Tech-Software Sector ETF	-10.30%	5.56%	23.41%	58.56%	-35.65%	12.30%	52.86%	34.33%	12.44%	42.16%
XSW SPDR S&P Software & Services ETF	-3.95%	-0.90%	25.81%	38.60%	-34.22%	7.47%	52.41%	36.50%	7.67%	27.94%

Correlation

The correlation between IGV and XSW is 0.88, 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	0.88
Correlation (3Y) Calculated over the trailing 3-year period	0.87
Correlation (5Y) Calculated over the trailing 5-year period	0.90
Correlation (10Y) Calculated over the trailing 10-year period	0.90
Correlation (All Time) Calculated using the full available price history since Sep 29, 2011	0.86

The correlation between IGV and XSW has been stable across timeframes, ranging from 0.86 to 0.90 - a consistent structural relationship.

IGV vs. XSW - Sectors Allocation Comparison

Sectors	IGV	XSW
Technology	89.1%	85.9%
Communication Services	8.6%	2.7%
Financial Services	1.9%	9.0%
Consumer Cyclical	0.3%	1.1%
Industrials	0.1%	0.6%
Basic Materials	-	-
Consumer Defensive	-	-
Energy	-	-
Healthcare	-	0.8%
Real Estate	-	-
Utilities	-	-

Return for Risk

IGV vs. XSW — Risk / Return Rank

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

IGV

IGV Risk / Return Rank: 5
IGV Sharpe Ratio Rank: 5
IGV Sortino Ratio Rank: 5
IGV Omega Ratio Rank: 5
IGV Calmar Ratio Rank: 6
IGV Martin Ratio Rank: 6

XSW

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

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. XSW - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for iShares Expanded Tech-Software Sector ETF (IGV) and SPDR S&P Software & Services ETF (XSW). 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.

Values are calculated on a 1-year rolling basis and updated daily. Risk-adjusted metrics are more stable over longer periods — use the period switch above to explore them.

	IGV	XSW	Difference
Sharpe ratio: Return per unit of total volatility	-0.52	-0.28	-0.24
Sortino ratio: Return per unit of downside risk	-0.57	-0.20	-0.37
Omega ratio: Gain probability vs. loss probability	0.93	0.98	-0.04
Calmar ratio: Return relative to maximum drawdown	-0.41	-0.24	-0.16
Martin ratio: Return relative to average drawdown	-0.80	-0.49	-0.31

IGV vs. XSW - Sharpe Ratio Comparison

The current IGV Sharpe Ratio is -0.52, which is lower than the XSW Sharpe Ratio of -0.28. The chart below compares the historical Sharpe Ratios of IGV and XSW, calculated using daily returns over the previous 12 months. A higher Sharpe Ratio indicates better risk-adjusted performance relative to the risk-free rate.

Drawdowns

IGV vs. XSW - Drawdown Comparison

The maximum IGV drawdown since its inception was -63.45%, which is greater than XSW's maximum drawdown of -45.38%. Use the drawdown chart below to compare losses from any high point for IGV and XSW.

Drawdown Indicators

	IGV	XSW	Difference
Max Drawdown Largest peak-to-trough decline	-63.45%	-45.38%	-18.07%
Max Drawdown (1Y) Largest decline over 1 year	-36.61%	-33.75%	-2.86%
Max Drawdown (3Y) Largest decline over 3 years	-36.61%	-33.75%	-2.86%
Max Drawdown (5Y) Largest decline over 5 years	-45.85%	-45.38%	-0.47%
Max Drawdown (10Y) Largest decline over 10 years	-45.85%	-45.38%	-0.47%
Current Drawdown Current decline from peak	-19.51%	-12.42%	-7.09%
Average Drawdown Average peak-to-trough decline	-14.47%	-9.88%	-4.59%
Ulcer Index Depth and duration of drawdowns from previous peaks	18.43%	16.59%	+1.84%

Volatility

IGV vs. XSW - Volatility Comparison

iShares Expanded Tech-Software Sector ETF (IGV) and SPDR S&P Software & Services ETF (XSW) have volatilities of 9.17% and 8.97%, 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.

Volatility by Period

	IGV	XSW	Difference
Volatility (1M) Calculated over the trailing 1-month period	9.17%	8.97%	+0.20%
Volatility (6M) Calculated over the trailing 6-month period	25.48%	24.55%	+0.93%
Volatility (1Y) Calculated over the trailing 1-year period	28.71%	29.25%	-0.54%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	28.07%	29.02%	-0.95%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	26.40%	26.29%	+0.11%

IGV vs. XSW - Expense Ratio Comparison

IGV has a 0.39% expense ratio, which is higher than XSW's 0.35% expense ratio.

Dividends

IGV vs. XSW - Dividend Comparison

IGV's dividend yield for the trailing twelve months is around 0.02%, while XSW has not paid dividends to shareholders.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
IGV iShares Expanded Tech-Software Sector ETF	0.02%	0.00%	0.00%	0.01%	0.01%	0.00%	0.35%	0.02%	0.16%	0.09%	0.82%	0.22%
XSW SPDR S&P Software & Services ETF	0.00%	0.06%	0.07%	0.20%	0.09%	0.13%	0.26%	0.12%	0.31%	0.46%	0.87%	0.54%

Frequently Asked Questions

Can I hold both IGV and XSW in my portfolio?

IGV and XSW have a correlation of 0.88, 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 XSW?

IGV has higher volatility (9.17%) compared to XSW (8.97%). In terms of maximum drawdown, IGV dropped -63.45% vs XSW's -45.38%.

Which ETF is better, IGV or XSW?

On 10-year performance, IGV leads with 16.11% vs 13.56% for XSW. On fees, XSW is cheaper at 0.35% per year. On volatility, XSW has been the lower-risk option at 8.97%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, IGV or XSW?

Over the 10-year period, IGV has performed better with a 16.11% return vs 13.56%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, IGV or XSW?

XSW is cheaper with a 0.35% expense ratio, compared with 0.39% for IGV.

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

IGV has the higher dividend yield at 0.02%, compared with 0.00% for XSW.

What is the main difference between IGV and XSW?

IGV tracks S&P North American Expanded Technology Software Index, while XSW tracks S&P Software & Services Select Industry Index. They also come from different issuers: iShares and State Street. Their fees differ too: 0.39% for IGV and 0.35% for XSW.

Which has better risk-adjusted returns?

XSW currently has the higher Sharpe Ratio (-0.28 vs -0.52), 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.