IWC vs. VGT

Last updated Jul 14, 2026

IWC (iShares Micro-Cap ETF) and VGT (Vanguard Information Technology ETF) are both exchange-traded funds - IWC is a Small Cap Blend Equities fund tracking the Russell Microcap Index, while VGT is a Technology Equities fund tracking the MSCI USA IMI Information Technology 25/50 Index. Both are passively managed. Over the past 10 years, IWC returned 11.37%/yr vs 24.67%/yr for VGT. A 0.72 correlation means they provide meaningful diversification when combined. IWC charges 0.60%/yr vs 0.09%/yr for VGT.

Performance

IWC vs. VGT - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in iShares Micro-Cap ETF (IWC) and Vanguard Information Technology ETF (VGT). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

The year-to-date returns for both stocks are quite close, with IWC having a 23.21% return and VGT slightly lower at 22.94%. Over the past 10 years, IWC has underperformed VGT with an annualized return of 11.37%, while VGT has yielded a comparatively higher 24.67% annualized return.

IWC

• 1D: -1.02%
• 1M: 2.50%
• 6M: 16.07%
• YTD: 23.21%
• 1Y: 48.46%
• 3Y*: 21.80%
• 5Y*: 7.27%
• 10Y*: 11.37%

VGT

• 1D: -2.12%
• 1M: -0.88%
• 6M: 21.06%
• YTD: 22.94%
• 1Y: 38.55%
• 3Y*: 28.00%
• 5Y*: 18.46%
• 10Y*: 24.67%

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

IWC vs. VGT - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
IWC iShares Micro-Cap ETF	23.21%	22.45%	13.63%	8.99%	-21.93%	18.67%	20.88%	22.20%	-13.13%	12.79%
VGT Vanguard Information Technology ETF	22.94%	21.77%	29.30%	52.66%	-29.70%	30.45%	46.04%	48.62%	2.46%	37.08%

Correlation

The correlation between IWC and VGT 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	0.63
Correlation (5Y) Calculated over the trailing 5-year period	0.68
Correlation (10Y) Calculated over the trailing 10-year period	0.64
Correlation (All Time) Calculated using the full available price history since Aug 16, 2005	0.72

The correlation between IWC and VGT has been stable across timeframes, ranging from 0.63 to 0.72 - a consistent structural relationship.

IWC vs. VGT - Sectors Allocation Comparison

Sectors	IWC	VGT
Healthcare	26.8%	0.0%
Technology	21.7%	98.5%
Financial Services	17.6%	0.5%
Industrials	13.3%	0.3%
Consumer Cyclical	5.2%	0.1%
Basic Materials	4.1%	0.0%
Energy	4.0%	0.3%
Real Estate	3.3%	-
Communication Services	1.9%	0.6%
Consumer Defensive	1.6%	-
Utilities	0.5%	-

Return for Risk

IWC vs. VGT — Risk / Return Rank

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

IWC

IWC Risk / Return Rank: 78
IWC Sharpe Ratio Rank: 80
IWC Sortino Ratio Rank: 76
IWC Omega Ratio Rank: 68
IWC Calmar Ratio Rank: 87
IWC Martin Ratio Rank: 82

VGT

VGT Risk / Return Rank: 57
VGT Sharpe Ratio Rank: 63
VGT Sortino Ratio Rank: 57
VGT Omega Ratio Rank: 57
VGT Calmar Ratio Rank: 59
VGT 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.

IWC vs. VGT - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for iShares Micro-Cap ETF (IWC) 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.

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.

	IWC	VGT	Difference
Sharpe ratio: Return per unit of total volatility	2.01	1.66	+0.35
Sortino ratio: Return per unit of downside risk	2.68	2.17	+0.51
Omega ratio: Gain probability vs. loss probability	1.32	1.28	+0.04
Calmar ratio: Return relative to maximum drawdown	3.92	2.36	+1.56
Martin ratio: Return relative to average drawdown	12.71	6.86	+5.85

IWC vs. VGT - Sharpe Ratio Comparison

The current IWC Sharpe Ratio is 2.01, which is comparable to the VGT Sharpe Ratio of 1.66. The chart below compares the historical Sharpe Ratios of IWC and VGT, 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

IWC vs. VGT - Drawdown Comparison

The maximum IWC drawdown since its inception was -64.61%, which is greater than VGT's maximum drawdown of -54.63%. Use the drawdown chart below to compare losses from any high point for IWC and VGT.

Drawdown Indicators

	IWC	VGT	Difference
Max Drawdown Largest peak-to-trough decline	-64.61%	-54.63%	-9.98%
Max Drawdown (1Y) Largest decline over 1 year	-12.43%	-16.40%	+3.97%
Max Drawdown (3Y) Largest decline over 3 years	-29.46%	-27.23%	-2.23%
Max Drawdown (5Y) Largest decline over 5 years	-40.61%	-35.07%	-5.54%
Max Drawdown (10Y) Largest decline over 10 years	-47.21%	-35.07%	-12.14%
Current Drawdown Current decline from peak	-3.40%	-7.99%	+4.59%
Average Drawdown Average peak-to-trough decline	-15.21%	-7.94%	-7.27%
Ulcer Index Depth and duration of drawdowns from previous peaks	3.82%	5.63%	-1.81%

Volatility

IWC vs. VGT - Volatility Comparison

The current volatility for iShares Micro-Cap ETF (IWC) is 5.99%, while Vanguard Information Technology ETF (VGT) has a volatility of 9.66%. This indicates that IWC experiences smaller price fluctuations and is considered to be less risky than VGT based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	IWC	VGT	Difference
Volatility (1M) Calculated over the trailing 1-month period	5.99%	9.66%	-3.67%
Volatility (6M) Calculated over the trailing 6-month period	18.27%	19.38%	-1.11%
Volatility (1Y) Calculated over the trailing 1-year period	24.27%	23.37%	+0.90%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	24.53%	25.69%	-1.16%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	24.47%	24.80%	-0.33%

IWC vs. VGT - Expense Ratio Comparison

IWC has a 0.60% expense ratio, which is higher than VGT's 0.09% expense ratio.

Dividends

IWC vs. VGT - Dividend Comparison

IWC's dividend yield for the trailing twelve months is around 0.98%, more than VGT's 0.37% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
IWC iShares Micro-Cap ETF	0.98%	1.10%	1.06%	1.17%	1.18%	0.78%	0.98%	1.19%	1.01%	1.09%	1.16%	1.49%
VGT Vanguard Information Technology ETF	0.37%	0.40%	0.60%	0.65%	0.91%	0.64%	0.82%	1.11%	1.29%	0.99%	1.31%	1.28%

Frequently Asked Questions

Can I hold both IWC and VGT in my portfolio?

IWC and VGT 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, IWC or VGT?

VGT has higher volatility (9.66%) compared to IWC (5.99%). In terms of maximum drawdown, IWC dropped -64.61% vs VGT's -54.63%.

Which ETF is better, IWC or VGT?

On 10-year performance, VGT leads with 24.67% vs 11.37% for IWC. On fees, VGT is cheaper at 0.09% per year. On volatility, IWC has been the lower-risk option at 5.99%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, IWC or VGT?

Over the 10-year period, VGT has performed better with a 24.67% return vs 11.37%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, IWC or VGT?

VGT is cheaper with a 0.09% expense ratio, compared with 0.60% for IWC.

Which ETF pays a higher dividend yield, IWC or VGT?

IWC has the higher dividend yield at 0.98%, compared with 0.37% for VGT.

What is the main difference between IWC and VGT?

IWC is categorized as Small Cap Blend Equities, while VGT is Technology Equities. IWC tracks Russell Microcap Index, while VGT tracks MSCI USA IMI Information Technology 25/50 Index. They also come from different issuers: iShares and Vanguard. Their fees differ too: 0.60% for IWC and 0.09% for VGT.

Which has better risk-adjusted returns?

IWC currently has the higher Sharpe Ratio (2.01 vs 1.66), 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.