PABU vs. VGT

Last updated Jun 23, 2026

PABU (iShares Paris-Aligned Climate Optimized MSCI USA ETF) and VGT (Vanguard Information Technology ETF) are both exchange-traded funds - PABU is a Large Cap Blend Equities fund tracking the MSCI USA Climate Paris Aligned Benchmark Extended Select PAB Index (USD), while VGT is a Technology Equities fund tracking the MSCI USA IMI Information Technology 25/50 Index. Both are passively managed. Over the past 3 years, PABU returned 17.67%/yr vs 31.77%/yr for VGT. Their correlation of 0.89 suggests significant overlap in exposure. PABU charges 0.10%/yr vs 0.09%/yr for VGT.

Performance

PABU vs. VGT - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in iShares Paris-Aligned Climate Optimized MSCI USA ETF (PABU) and Vanguard Information Technology ETF (VGT). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, PABU achieves a 4.30% return, which is significantly lower than VGT's 28.03% return.

PABU

• 1D: -0.85%
• 1M: -2.15%
• YTD: 4.30%
• 6M: 3.73%
• 1Y: 18.73%
• 3Y*: 17.67%
• 5Y*: —
• 10Y*: —

VGT

• 1D: 0.39%
• 1M: 4.11%
• YTD: 28.03%
• 6M: 26.85%
• 1Y: 54.06%
• 3Y*: 31.77%
• 5Y*: 20.58%
• 10Y*: 25.96%

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

PABU vs. VGT - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022
PABU iShares Paris-Aligned Climate Optimized MSCI USA ETF	4.30%	13.08%	24.84%	29.51%	-15.45%
VGT Vanguard Information Technology ETF	28.03%	21.77%	29.30%	52.66%	-23.16%

Correlation

The correlation between PABU and VGT is 0.87, 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	0.87
Correlation (3Y) Calculated over the trailing 3-year period	0.90
Correlation (All Time) Calculated using the full available price history since Feb 11, 2022	0.89

The correlation between PABU and VGT has been stable across timeframes, ranging from 0.87 to 0.90 - a consistent structural relationship.

PABU vs. VGT - Sectors Allocation Comparison

Sectors	PABU	VGT
Technology	52.4%	98.5%
Real Estate	16.4%	-
Communication Services	8.4%	0.5%
Financial Services	6.9%	0.5%
Consumer Cyclical	6.2%	0.1%
Healthcare	5.6%	0.0%
Utilities	1.6%	-
Industrials	1.6%	0.4%
Energy	0.8%	0.3%
Basic Materials	0.5%	0.0%
Consumer Defensive	-	-

Return for Risk

PABU vs. VGT — Risk / Return Rank

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

PABU

PABU Risk / Return Rank: 35
PABU Sharpe Ratio Rank: 39
PABU Sortino Ratio Rank: 36
PABU Omega Ratio Rank: 37
PABU Calmar Ratio Rank: 29
PABU Martin Ratio Rank: 33

VGT

VGT Risk / Return Rank: 69
VGT Sharpe Ratio Rank: 79
VGT Sortino Ratio Rank: 69
VGT Omega Ratio Rank: 70
VGT Calmar Ratio Rank: 68
VGT Martin Ratio Rank: 59

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.

PABU vs. VGT - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for iShares Paris-Aligned Climate Optimized MSCI USA ETF (PABU) 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.

	PABU	VGT	Difference
Sharpe ratio: Return per unit of total volatility	1.33	2.43	-1.10
Sortino ratio: Return per unit of downside risk	1.83	2.99	-1.16
Omega ratio: Gain probability vs. loss probability	1.24	1.40	-0.16
Calmar ratio: Return relative to maximum drawdown	1.40	3.31	-1.91
Martin ratio: Return relative to average drawdown	4.73	10.16	-5.43

PABU vs. VGT - Sharpe Ratio Comparison

The current PABU Sharpe Ratio is 1.33, which is lower than the VGT Sharpe Ratio of 2.43. The chart below compares the historical Sharpe Ratios of PABU 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

PABU vs. VGT - Drawdown Comparison

The maximum PABU drawdown since its inception was -22.76%, smaller than the maximum VGT drawdown of -54.63%. Use the drawdown chart below to compare losses from any high point for PABU and VGT.

Drawdown Indicators

	PABU	VGT	Difference
Max Drawdown Largest peak-to-trough decline	-22.76%	-54.63%	+31.87%
Max Drawdown (1Y) Largest decline over 1 year	-13.40%	-16.40%	+3.00%
Max Drawdown (3Y) Largest decline over 3 years	-20.85%	-27.23%	+6.38%
Max Drawdown (5Y) Largest decline over 5 years	—	-35.07%	—
Max Drawdown (10Y) Largest decline over 10 years	—	-35.07%	—
Current Drawdown Current decline from peak	-5.88%	-4.18%	-1.70%
Average Drawdown Average peak-to-trough decline	-5.62%	-7.95%	+2.33%
Ulcer Index Depth and duration of drawdowns from previous peaks	3.97%	5.34%	-1.37%

Volatility

PABU vs. VGT - Volatility Comparison

The current volatility for iShares Paris-Aligned Climate Optimized MSCI USA ETF (PABU) is 6.19%, while Vanguard Information Technology ETF (VGT) has a volatility of 10.66%. This indicates that PABU 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

	PABU	VGT	Difference
Volatility (1M) Calculated over the trailing 1-month period	6.19%	10.66%	-4.47%
Volatility (6M) Calculated over the trailing 6-month period	11.49%	18.19%	-6.70%
Volatility (1Y) Calculated over the trailing 1-year period	14.19%	22.44%	-8.25%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	18.76%	25.50%	-6.74%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	18.76%	24.78%	-6.02%

PABU vs. VGT - Expense Ratio Comparison

PABU has a 0.10% expense ratio, which is higher than VGT's 0.09% expense ratio. However, both funds are considered low-cost compared to the broader market, where average expense ratios usually range from 0.3% to 0.9%.

Dividends

PABU vs. VGT - Dividend Comparison

PABU's dividend yield for the trailing twelve months is around 0.94%, more than VGT's 0.32% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
PABU iShares Paris-Aligned Climate Optimized MSCI USA ETF	0.94%	0.90%	1.00%	1.06%	1.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%
VGT Vanguard Information Technology ETF	0.32%	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 PABU and VGT in my portfolio?

PABU and VGT have a correlation of 0.87, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, PABU or VGT?

VGT has higher volatility (10.66%) compared to PABU (6.19%). In terms of maximum drawdown, PABU dropped -22.76% vs VGT's -54.63%.

Which ETF is better, PABU or VGT?

On 3-year performance, VGT leads with 31.77% vs 17.67% for PABU. On fees, VGT is cheaper at 0.09% per year. On volatility, PABU has been the lower-risk option at 6.19%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, PABU or VGT?

Over the 3-year period, VGT has performed better with a 31.77% return vs 17.67%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, PABU or VGT?

VGT is cheaper with a 0.09% expense ratio, compared with 0.10% for PABU.

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

PABU has the higher dividend yield at 0.94%, compared with 0.32% for VGT.

What is the main difference between PABU and VGT?

PABU is categorized as Large Cap Blend Equities, while VGT is Technology Equities. PABU tracks MSCI USA Climate Paris Aligned Benchmark Extended Select PAB Index (USD), while VGT tracks MSCI USA IMI Information Technology 25/50 Index. They also come from different issuers: iShares and Vanguard. Their fees differ too: 0.10% for PABU and 0.09% for VGT.

Which has better risk-adjusted returns?

VGT currently has the higher Sharpe Ratio (2.43 vs 1.33), 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.