IYW vs. SHLD

Last updated Jun 16, 2026

IYW (iShares U.S. Technology ETF) and SHLD (Global X Defense Tech ETF) are both exchange-traded funds - IYW is a Technology Equities fund tracking the Russell 1000 Technology RIC 22.5/45 Capped Index, while SHLD is a Aerospace & Defense fund tracking the Global X Defense Tech Index. Both are passively managed. Over the past year, IYW returned 55.82% vs 7.35% for SHLD. At a 0.35 correlation, their price movements are largely independent. IYW charges 0.38%/yr vs 0.50%/yr for SHLD.

Performance

IYW vs. SHLD - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in iShares U.S. Technology ETF (IYW) and Global X Defense Tech ETF (SHLD). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, IYW achieves a 27.27% return, which is significantly higher than SHLD's -2.33% return.

IYW

• 1D: 3.76%
• 1M: 6.38%
• YTD: 27.27%
• 6M: 29.26%
• 1Y: 55.82%
• 3Y*: 33.08%
• 5Y*: 22.08%
• 10Y*: 26.22%

SHLD

• 1D: -0.85%
• 1M: 1.51%
• YTD: -2.33%
• 6M: -1.40%
• 1Y: 7.35%
• 3Y*: —
• 5Y*: —
• 10Y*: —

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

IYW vs. SHLD - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023
IYW iShares U.S. Technology ETF	27.27%	25.38%	30.25%	12.95%
SHLD Global X Defense Tech ETF	-2.33%	74.16%	35.03%	12.89%

Correlation

The correlation between IYW and SHLD is 0.36, which is low. Their price movements are largely independent, making them effective diversification partners.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	0.36
Correlation (All Time) Calculated using the full available price history since Sep 13, 2023	0.35

Return for Risk

IYW vs. SHLD — Risk / Return Rank

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

IYW

IYW Risk / Return Rank: 76
IYW Sharpe Ratio Rank: 88
IYW Sortino Ratio Rank: 81
IYW Omega Ratio Rank: 81
IYW Calmar Ratio Rank: 69
IYW Martin Ratio Rank: 62

SHLD

SHLD Risk / Return Rank: 14
SHLD Sharpe Ratio Rank: 14
SHLD Sortino Ratio Rank: 14
SHLD Omega Ratio Rank: 13
SHLD Calmar Ratio Rank: 14
SHLD Martin Ratio Rank: 14

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.

IYW vs. SHLD - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for iShares U.S. Technology ETF (IYW) and Global X Defense Tech ETF (SHLD). 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.

	IYW	SHLD	Difference
Sharpe ratio: Return per unit of total volatility	2.59	0.30	+2.28
Sortino ratio: Return per unit of downside risk	3.19	0.61	+2.58
Omega ratio: Gain probability vs. loss probability	1.43	1.07	+0.36
Calmar ratio: Return relative to maximum drawdown	3.15	0.37	+2.78
Martin ratio: Return relative to average drawdown	10.11	0.90	+9.21

IYW vs. SHLD - Sharpe Ratio Comparison

The current IYW Sharpe Ratio is 2.59, which is higher than the SHLD Sharpe Ratio of 0.30. The chart below compares the historical Sharpe Ratios of IYW and SHLD, 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

IYW vs. SHLD - Drawdown Comparison

The maximum IYW drawdown since its inception was -81.90%, which is greater than SHLD's maximum drawdown of -20.10%. Use the drawdown chart below to compare losses from any high point for IYW and SHLD.

Drawdown Indicators

	IYW	SHLD	Difference
Max Drawdown Largest peak-to-trough decline	-81.90%	-20.10%	-61.80%
Max Drawdown (1Y) Largest decline over 1 year	-17.81%	-20.10%	+2.29%
Max Drawdown (3Y) Largest decline over 3 years	-26.47%	—	—
Max Drawdown (5Y) Largest decline over 5 years	-39.44%	—	—
Max Drawdown (10Y) Largest decline over 10 years	-39.44%	—	—
Current Drawdown Current decline from peak	-2.27%	-18.89%	+16.62%
Average Drawdown Average peak-to-trough decline	-34.62%	-3.37%	-31.25%
Ulcer Index Depth and duration of drawdowns from previous peaks	5.54%	8.21%	-2.67%

Volatility

IYW vs. SHLD - Volatility Comparison

iShares U.S. Technology ETF (IYW) has a higher volatility of 10.05% compared to Global X Defense Tech ETF (SHLD) at 9.07%. This indicates that IYW's price experiences larger fluctuations and is considered to be riskier than SHLD based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	IYW	SHLD	Difference
Volatility (1M) Calculated over the trailing 1-month period	10.05%	9.07%	+0.98%
Volatility (6M) Calculated over the trailing 6-month period	18.01%	19.95%	-1.94%
Volatility (1Y) Calculated over the trailing 1-year period	21.74%	24.49%	-2.75%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	26.13%	21.28%	+4.85%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	25.24%	21.28%	+3.96%

IYW vs. SHLD - Expense Ratio Comparison

IYW has a 0.38% expense ratio, which is lower than SHLD's 0.50% expense ratio.

Dividends

IYW vs. SHLD - Dividend Comparison

IYW's dividend yield for the trailing twelve months is around 0.13%, less than SHLD's 0.56% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
IYW iShares U.S. Technology ETF	0.13%	0.14%	0.21%	0.34%	0.50%	0.31%	0.56%	0.72%	0.92%	0.82%	1.14%	1.12%
SHLD Global X Defense Tech ETF	0.56%	0.55%	0.53%	0.26%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%

Frequently Asked Questions

Can I hold both IYW and SHLD in my portfolio?

IYW and SHLD have a correlation of 0.36, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, IYW or SHLD?

IYW has higher volatility (10.05%) compared to SHLD (9.07%). In terms of maximum drawdown, IYW dropped -81.90% vs SHLD's -20.10%.

Which ETF is better, IYW or SHLD?

On 1-year performance, IYW leads with 55.82% vs 7.35% for SHLD. On fees, IYW is cheaper at 0.38% per year. On volatility, SHLD has been the lower-risk option at 9.07%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, IYW or SHLD?

Over the 1-year period, IYW has performed better with a 55.82% return vs 7.35%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, IYW or SHLD?

IYW is cheaper with a 0.38% expense ratio, compared with 0.50% for SHLD.

Which ETF pays a higher dividend yield, IYW or SHLD?

SHLD has the higher dividend yield at 0.56%, compared with 0.13% for IYW.

What is the main difference between IYW and SHLD?

IYW is categorized as Technology Equities, while SHLD is Aerospace & Defense. IYW tracks Russell 1000 Technology RIC 22.5/45 Capped Index, while SHLD tracks Global X Defense Tech Index. They also come from different issuers: iShares and Global X. Their fees differ too: 0.38% for IYW and 0.50% for SHLD.

Which has better risk-adjusted returns?

IYW currently has the higher Sharpe Ratio (2.58 vs 0.30), 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.