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VGT vs. AAXJ
Performance
Return for Risk
Drawdowns
Volatility
Dividends

VGT vs. AAXJ

Last updated Jun 14, 2026

VGT (Vanguard Information Technology ETF) and AAXJ (iShares MSCI All Country Asia ex-Japan ETF) are both exchange-traded funds - VGT is a Technology Equities fund tracking the MSCI USA IMI Information Technology 25/50 Index, while AAXJ is a Asia Pacific Equities fund tracking the MSCI All Country Asia ex Japan Index. Both are passively managed. Over the past 10 years, VGT returned 25.19%/yr vs 10.34%/yr for AAXJ. A 0.68 correlation means they provide meaningful diversification when combined. VGT charges 0.09%/yr vs 0.68%/yr for AAXJ.

Performance

VGT vs. AAXJ - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in Vanguard Information Technology ETF (VGT) and iShares MSCI All Country Asia ex-Japan ETF (AAXJ). The values are adjusted to include any dividend payments, if applicable.

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Returns By Period

In the year-to-date period, VGT achieves a 24.03% return, which is significantly lower than AAXJ's 26.46% return. Over the past 10 years, VGT has outperformed AAXJ with an annualized return of 25.19%, while AAXJ has yielded a comparatively lower 10.34% annualized return.

VGT

1D
0.58%
1M
1.35%
YTD
24.03%
6M
24.13%
1Y
50.48%
3Y*
29.84%
5Y*
20.35%
10Y*
25.19%

AAXJ

1D
0.46%
1M
0.61%
YTD
26.46%
6M
29.76%
1Y
48.69%
3Y*
22.11%
5Y*
6.41%
10Y*
10.34%
*Multi-year figures are annualized to reflect compound growth (CAGR)

VGT vs. AAXJ - Yearly Performance Comparison

2026 (YTD)202520242023202220212020201920182017
VGT
Vanguard Information Technology ETF		24.03%21.77%29.30%52.66%-29.70%30.45%46.04%48.62%2.46%37.08%
AAXJ
iShares MSCI All Country Asia ex-Japan ETF		26.46%31.53%10.41%4.79%-20.35%-5.73%23.35%17.93%-15.04%41.76%

Correlation

The correlation between VGT and AAXJ is 0.74, 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

0.74

Correlation (3Y)
Calculated over the trailing 3-year period

0.63

Correlation (5Y)
Calculated over the trailing 5-year period

0.63

Correlation (10Y)
Calculated over the trailing 10-year period

0.65

Correlation (All Time)
Calculated using the full available price history since Aug 15, 2008

0.68

The correlation between VGT and AAXJ shifts across timeframes, from 0.63 (3 years) to 0.74 (1 year), reflecting how their relationship changes across market environments.

VGT vs. AAXJ - Sectors Allocation Comparison

Sectors
VGT
AAXJ

Technology

98.5%
49.4%

Communication Services

0.5%
5.9%

Financial Services

0.5%
15.8%

Industrials

0.4%
7.3%

Energy

0.3%
2.2%

Consumer Cyclical

0.1%
8.9%

Basic Materials

0.0%
3.1%

Healthcare

0.0%
2.6%

Consumer Defensive

-

2.0%

Real Estate

-

1.4%

Utilities

-

1.6%

Technology

VGT
98.5%
AAXJ
49.4%

Communication Services

VGT
0.5%
AAXJ
5.9%

Financial Services

VGT
0.5%
AAXJ
15.8%

Industrials

VGT
0.4%
AAXJ
7.3%

Energy

VGT
0.3%
AAXJ
2.2%

Consumer Cyclical

VGT
0.1%
AAXJ
8.9%

Basic Materials

VGT
0.0%
AAXJ
3.1%

Healthcare

VGT
0.0%
AAXJ
2.6%

Consumer Defensive

VGT

-

AAXJ
2.0%

Real Estate

VGT

-

AAXJ
1.4%

Utilities

VGT

-

AAXJ
1.6%

Compare stocks, funds, or ETFs

Search for stocks, ETFs, and funds for a quick comparison or use the comparison tool for more options.

Vanguard Information Technology ETF

iShares MSCI All Country Asia ex-Japan ETF

Often compared with VGT:
VGT vs. QQQVGT vs. VOOVGT vs. QQQMVGT vs. SMHVGT vs. VUGVGT vs. FTECVGT vs. XLK
Often compared with AAXJ:
AAXJ vs. VPLAAXJ vs. IEMGAAXJ vs. VWOAAXJ vs. BBAXAAXJ vs. EPPAAXJ vs. CQQQAAXJ vs. THD

Return for Risk

VGT vs. AAXJ — Risk / Return Rank

Compare risk-adjusted metric ranks to identify better-performing investments over the past 12 months.
VGT
VGT Risk / Return Rank: 7070
Overall Rank
VGT Sharpe Ratio Rank: 7979
Sharpe Ratio Rank
VGT Sortino Ratio Rank: 7171
Sortino Ratio Rank
VGT Omega Ratio Rank: 7272
Omega Ratio Rank
VGT Calmar Ratio Rank: 6767
Calmar Ratio Rank
VGT Martin Ratio Rank: 5959
Martin Ratio Rank
AAXJ
AAXJ Risk / Return Rank: 7575
Overall Rank
AAXJ Sharpe Ratio Rank: 7676
Sharpe Ratio Rank
AAXJ Sortino Ratio Rank: 7070
Sortino Ratio Rank
AAXJ Omega Ratio Rank: 7878
Omega Ratio Rank
AAXJ Calmar Ratio Rank: 7676
Calmar Ratio Rank
AAXJ Martin Ratio Rank: 7676
Martin Ratio Rank
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.

VGT vs. AAXJ - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Vanguard Information Technology ETF (VGT) and iShares MSCI All Country Asia ex-Japan ETF (AAXJ). 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.

VGTAAXJDifference
Sharpe ratioReturn per unit of total volatility
2.19
2.11

+0.09

Sortino ratioReturn per unit of downside risk
2.74
2.73

+0.01

Omega ratioGain probability vs. loss probability

1.36

1.40

-0.03

Calmar ratioReturn relative to maximum drawdown

2.94

3.41

-0.47

Martin ratioReturn relative to average drawdown

9.11

12.55

-3.44

VGT vs. AAXJ - Sharpe Ratio Comparison

The current VGT Sharpe Ratio is 2.19, which is comparable to the AAXJ Sharpe Ratio of 2.11. The chart below compares the historical Sharpe Ratios of VGT and AAXJ, calculated using daily returns over the previous 12 months. A higher Sharpe Ratio indicates better risk-adjusted performance relative to the risk-free rate.

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Drawdowns

VGT vs. AAXJ - Drawdown Comparison

The maximum VGT drawdown since its inception was -54.63%, which is greater than AAXJ's maximum drawdown of -49.37%. Use the drawdown chart below to compare losses from any high point for VGT and AAXJ.

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Drawdown Indicators

VGTAAXJDifference

Max Drawdown

Largest peak-to-trough decline

-54.63%

-49.37%

-5.26%

Max Drawdown (1Y)

Largest decline over 1 year

-16.40%

-13.66%

-2.74%

Max Drawdown (3Y)

Largest decline over 3 years

-27.23%

-19.74%

-7.49%

Max Drawdown (5Y)

Largest decline over 5 years

-35.07%

-40.64%

+5.57%

Max Drawdown (10Y)

Largest decline over 10 years

-35.07%

-44.52%

+9.45%

Current Drawdown

Current decline from peak

-7.18%

-4.62%

-2.56%

Average Drawdown

Average peak-to-trough decline

-7.95%

-14.01%

+6.06%

Ulcer Index

Depth and duration of drawdowns from previous peaks

5.28%

3.71%

+1.57%

Volatility

VGT vs. AAXJ - Volatility Comparison

The current volatility for Vanguard Information Technology ETF (VGT) is 10.00%, while iShares MSCI All Country Asia ex-Japan ETF (AAXJ) has a volatility of 11.46%. This indicates that VGT experiences smaller price fluctuations and is considered to be less risky than AAXJ based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

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Volatility by Period

VGTAAXJDifference

Volatility (1M)

Calculated over the trailing 1-month period

10.00%

11.46%

-1.46%

Volatility (6M)

Calculated over the trailing 6-month period

18.00%

19.71%

-1.71%

Volatility (1Y)

Calculated over the trailing 1-year period

22.00%

22.12%

-0.12%

Volatility (5Y)

Calculated over the trailing 5-year period, annualized

25.40%

20.32%

+5.08%

Volatility (10Y)

Calculated over the trailing 10-year period, annualized

24.72%

20.42%

+4.30%

VGT vs. AAXJ - Expense Ratio Comparison

VGT has a 0.09% expense ratio, which is lower than AAXJ's 0.68% expense ratio.

Dividends

VGT vs. AAXJ - Dividend Comparison

VGT's dividend yield for the trailing twelve months is around 0.33%, less than AAXJ's 1.43% yield.

PositionTTM20252024202320222021202020192018201720162015
AAXJ
iShares MSCI All Country Asia ex-Japan ETF		1.43%1.81%1.86%1.95%1.74%2.21%1.06%1.83%2.10%1.99%1.77%2.44%
VGT
Vanguard Information Technology ETF		0.33%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

VGT and AAXJ have a correlation of 0.74, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

AAXJ has higher volatility (11.46%) compared to VGT (10.00%). In terms of maximum drawdown, VGT dropped -54.63% vs AAXJ's -49.37%.

On 10-year performance, VGT leads with 25.19% vs 10.34% for AAXJ. On fees, VGT is cheaper at 0.09% per year. On volatility, VGT has been the lower-risk option at 10.00%. The better choice depends on whether you care most about return, fees, risk, or income.

Over the 10-year period, VGT has performed better with a 25.19% return vs 10.34%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

VGT is cheaper with a 0.09% expense ratio, compared with 0.68% for AAXJ.

AAXJ has the higher dividend yield at 1.43%, compared with 0.33% for VGT.

VGT is categorized as Technology Equities, while AAXJ is Asia Pacific Equities. VGT tracks MSCI USA IMI Information Technology 25/50 Index, while AAXJ tracks MSCI All Country Asia ex Japan Index. They also come from different issuers: Vanguard and iShares. Their fees differ too: 0.09% for VGT and 0.68% for AAXJ.

VGT currently has the higher Sharpe Ratio (2.19 vs 2.11), 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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