IYW vs. MGK
Compare and contrast key facts about iShares U.S. Technology ETF (IYW) and Vanguard Mega Cap Growth ETF (MGK).
IYW and MGK are both exchange-traded funds (ETFs), meaning they are traded on stock exchanges and can be bought and sold throughout the day. IYW is a passively managed fund by iShares that tracks the performance of the Dow Jones U.S. Technology Index. It was launched on May 19, 2000. MGK is a passively managed fund by Vanguard that tracks the performance of the MSCI US Large Cap Growth Index. It was launched on Dec 17, 2007. Both IYW and MGK are passive ETFs, meaning that they are not actively managed but aim to replicate the performance of the underlying index as closely as possible.
Scroll down to visually compare performance, riskiness, drawdowns, and other indicators and decide which better suits your portfolio: IYW or MGK.
Key characteristics
| IYW | MGK | |
|---|---|---|
| YTD Return | 10.57% | 10.84% |
| 1Y Return | 43.35% | 37.07% |
| 3Y Return (Ann) | 15.25% | 10.89% |
| 5Y Return (Ann) | 23.31% | 18.49% |
| 10Y Return (Ann) | 20.58% | 15.84% |
| Sharpe Ratio | 2.37 | 2.33 |
| Daily Std Dev | 18.81% | 16.02% |
| Max Drawdown | -81.89% | -48.36% |
| Current Drawdown | -0.69% | -0.63% |
Correlation
The correlation between IYW and MGK is 0.94, which is considered to be high. That indicates a strong positive relationship between their price movements. Having highly-correlated positions in a portfolio may signal a lack of diversification, potentially leading to increased risk during market downturns.
Performance
IYW vs. MGK - Performance Comparison
The year-to-date returns for both investments are quite close, with IYW having a 10.57% return and MGK slightly higher at 10.84%. Over the past 10 years, IYW has outperformed MGK with an annualized return of 20.58%, while MGK has yielded a comparatively lower 15.84% annualized return. The chart below displays the growth of a $10,000 investment in both assets, with all prices adjusted for splits and dividends.
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IYW vs. MGK - Expense Ratio Comparison
IYW has a 0.42% expense ratio, which is higher than MGK's 0.07% expense ratio.
Risk-Adjusted Performance
IYW vs. MGK - Risk-Adjusted Performance Comparison
This table presents a comparison of risk-adjusted performance metrics for iShares U.S. Technology ETF (IYW) and Vanguard Mega Cap Growth ETF (MGK). 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.
Dividends
IYW vs. MGK - Dividend Comparison
IYW's dividend yield for the trailing twelve months is around 0.34%, less than MGK's 0.46% yield.
| TTM | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 | 2014 | 2013 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
IYW iShares U.S. Technology ETF | 0.34% | 0.40% | 0.50% | 0.31% | 0.56% | 0.72% | 0.91% | 0.82% | 1.13% | 1.12% | 1.13% | 1.06% |
MGK Vanguard Mega Cap Growth ETF | 0.46% | 0.50% | 0.70% | 0.41% | 0.65% | 0.85% | 1.12% | 1.23% | 1.53% | 1.43% | 1.25% | 1.29% |
Drawdowns
IYW vs. MGK - Drawdown Comparison
The maximum IYW drawdown since its inception was -81.89%, which is greater than MGK's maximum drawdown of -48.36%. Use the drawdown chart below to compare losses from any high point for IYW and MGK. For additional features, visit the drawdowns tool.
Volatility
IYW vs. MGK - Volatility Comparison
iShares U.S. Technology ETF (IYW) has a higher volatility of 6.33% compared to Vanguard Mega Cap Growth ETF (MGK) at 5.19%. This indicates that IYW's price experiences larger fluctuations and is considered to be riskier than MGK based on this measure. The chart below showcases a comparison of their rolling one-month volatility.