ITB vs. IYW
ITB (iShares U.S. Home Construction ETF) and IYW (iShares U.S. Technology ETF) are both exchange-traded funds - ITB is a Building & Construction fund tracking the Dow Jones U.S. Select Home Construction 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 10 years, ITB returned 14.46%/yr vs 26.12%/yr for IYW. A 0.53 correlation means they provide meaningful diversification when combined. Both charge a 0.38% expense ratio.
Performance
ITB vs. IYW - Performance Comparison
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Returns By Period
In the year-to-date period, ITB achieves a 3.43% return, which is significantly lower than IYW's 27.07% return. Over the past 10 years, ITB has underperformed IYW with an annualized return of 14.46%, while IYW has yielded a comparatively higher 26.12% annualized return.
ITB
- 1D
- 3.61%
- 1M
- 9.46%
- YTD
- 3.43%
- 6M
- 1.45%
- 1Y
- 11.44%
- 3Y*
- 8.12%
- 5Y*
- 8.98%
- 10Y*
- 14.46%
IYW
- 1D
- 2.91%
- 1M
- 5.65%
- YTD
- 27.07%
- 6M
- 27.03%
- 1Y
- 54.71%
- 3Y*
- 33.01%
- 5Y*
- 21.94%
- 10Y*
- 26.12%
ITB vs. IYW - Yearly Performance Comparison
| 2026 (YTD) | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | |
|---|---|---|---|---|---|---|---|---|---|---|
ITB iShares U.S. Home Construction ETF | 3.43% | -5.26% | 2.06% | 68.91% | -26.26% | 49.25% | 26.42% | 48.70% | -30.92% | 59.65% |
IYW iShares U.S. Technology ETF | 27.07% | 25.38% | 30.25% | 65.44% | -34.83% | 35.44% | 47.45% | 46.64% | -0.93% | 36.60% |
Correlation
The correlation between ITB and IYW is 0.17, which is low. Their price movements are largely independent, making them effective diversification partners.
| Correlation | |
|---|---|
Correlation (1Y) Calculated over the trailing 1-year period | 0.17 |
Correlation (3Y) Calculated over the trailing 3-year period | 0.33 |
Correlation (5Y) Calculated over the trailing 5-year period | 0.48 |
Correlation (10Y) Calculated over the trailing 10-year period | 0.47 |
Correlation (All Time) Calculated using the full available price history since May 5, 2006 | 0.53 |
Over the past year, the correlation between ITB and IYW has dropped to 0.17 - well below their long-term average of 0.53, suggesting their price drivers have been diverging.
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Return for Risk
ITB vs. IYW — Risk / Return Rank
ITB
IYW
ITB vs. IYW - Risk-Adjusted Trends Comparison
This table presents a comparison of risk-adjusted performance metrics for iShares U.S. Home Construction ETF (ITB) 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.
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.
| ITB | IYW | Difference | |
|---|---|---|---|
| Sharpe ratioReturn per unit of total volatility | -1.99 | ||
| Sortino ratioReturn per unit of downside risk | -2.09 | ||
| Omega ratioGain probability vs. loss probability | 1.11 | 1.41 | -0.30 |
| Calmar ratioReturn relative to maximum drawdown | 0.53 | 3.03 | -2.50 |
| Martin ratioReturn relative to average drawdown | 1.02 | 9.70 | -8.68 |
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Drawdowns
ITB vs. IYW - Drawdown Comparison
The maximum ITB drawdown since its inception was -86.53%, which is greater than IYW's maximum drawdown of -81.90%. Use the drawdown chart below to compare losses from any high point for ITB and IYW.
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Drawdown Indicators
| ITB | IYW | Difference | |
|---|---|---|---|
Max DrawdownLargest peak-to-trough decline | -86.53% | -81.90% | -4.63% |
Max Drawdown (1Y)Largest decline over 1 year | -26.04% | -17.81% | -8.23% |
Max Drawdown (3Y)Largest decline over 3 years | -33.35% | -26.47% | -6.88% |
Max Drawdown (5Y)Largest decline over 5 years | -40.55% | -39.44% | -1.11% |
Max Drawdown (10Y)Largest decline over 10 years | -52.10% | -39.44% | -12.66% |
Current DrawdownCurrent decline from peak | -21.59% | -2.42% | -19.17% |
Average DrawdownAverage peak-to-trough decline | -37.07% | -34.60% | -2.47% |
Ulcer IndexDepth and duration of drawdowns from previous peaks | 13.60% | 5.56% | +8.04% |
Volatility
ITB vs. IYW - Volatility Comparison
The current volatility for iShares U.S. Home Construction ETF (ITB) is 9.20%, while iShares U.S. Technology ETF (IYW) has a volatility of 10.44%. This indicates that ITB 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.
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Volatility by Period
| ITB | IYW | Difference | |
|---|---|---|---|
Volatility (1M)Calculated over the trailing 1-month period | 9.20% | 10.44% | -1.24% |
Volatility (6M)Calculated over the trailing 6-month period | 21.35% | 18.17% | +3.18% |
Volatility (1Y)Calculated over the trailing 1-year period | 29.94% | 21.97% | +7.97% |
Volatility (5Y)Calculated over the trailing 5-year period, annualized | 29.35% | 26.17% | +3.18% |
Volatility (10Y)Calculated over the trailing 10-year period, annualized | 30.08% | 25.25% | +4.83% |
ITB vs. IYW - Expense Ratio Comparison
Both ITB and IYW have an expense ratio of 0.38%.
Dividends
ITB vs. IYW - Dividend Comparison
ITB's dividend yield for the trailing twelve months is around 0.65%, more than IYW's 0.10% yield.
| Position | TTM | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
ITB iShares U.S. Home Construction ETF | 0.65% | 1.67% | 0.46% | 0.48% | 0.86% | 0.37% | 0.46% | 0.50% | 0.63% | 0.28% | 0.43% | 0.34% |
IYW iShares U.S. Technology ETF | 0.10% | 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
ITB and IYW have a correlation of 0.17, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.
IYW has higher volatility (10.44%) compared to ITB (9.20%). In terms of maximum drawdown, ITB dropped -86.53% vs IYW's -81.90%.
On 10-year performance, IYW leads with 26.12% vs 14.46% for ITB. Both ETFs have the same 0.38% expense ratio. On volatility, ITB has been the lower-risk option at 9.20%. The better choice depends on whether you care most about return, fees, risk, or income.
Over the 10-year period, IYW has performed better with a 26.12% return vs 14.46%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.
ITB and IYW have the same expense ratio: 0.38% per year.
ITB has the higher dividend yield at 0.65%, compared with 0.10% for IYW.
ITB is categorized as Building & Construction, while IYW is Technology Equities. ITB tracks Dow Jones U.S. Select Home Construction Index, while IYW tracks Russell 1000 Technology RIC 22.5/45 Capped Index.
IYW currently has the higher Sharpe Ratio (2.46 vs 0.46), 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.
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