VGT vs. IGM

Last updated Jun 6, 2026

VGT (Vanguard Information Technology ETF) and IGM (iShares Expanded Tech Sector ETF) are both Technology Equities funds - VGT tracks the MSCI USA IMI Information Technology 25/50 Index while IGM tracks the S&P North American Expanded Technology Sector Index. Both are passively managed. Over the past 10 years, VGT returned 24.81%/yr vs 24.14%/yr for IGM. With a 0.97 correlation, they move nearly in lockstep. VGT charges 0.09%/yr vs 0.39%/yr for IGM.

Performance

VGT vs. IGM - Performance Comparison

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

Returns By Period

In the year-to-date period, VGT achieves a 22.48% return, which is significantly higher than IGM's 21.31% return. Both investments have delivered pretty close results over the past 10 years, with VGT having a 24.81% annualized return and IGM not far behind at 24.14%.

VGT

• 1D: -6.14%
• 1M: 5.22%
• YTD: 22.48%
• 6M: 20.33%
• 1Y: 49.26%
• 3Y*: 30.47%
• 5Y*: 20.48%
• 10Y*: 24.81%

IGM

• 1D: -6.23%
• 1M: 3.80%
• YTD: 21.31%
• 6M: 18.07%
• 1Y: 49.16%
• 3Y*: 35.45%
• 5Y*: 20.12%
• 10Y*: 24.14%

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

VGT vs. IGM - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
VGT Vanguard Information Technology ETF	22.48%	21.77%	29.30%	52.66%	-29.70%	30.45%	46.04%	48.62%	2.46%	37.08%
IGM iShares Expanded Tech Sector ETF	21.31%	26.76%	36.99%	60.68%	-35.83%	25.72%	45.11%	41.81%	2.26%	37.20%

Correlation

The correlation between VGT and IGM is 0.97 - these two move nearly in lockstep. At this level, holding both provides almost no diversification benefit. If you already own one, adding the other does little to reduce portfolio risk.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	0.97
Correlation (3Y) Calculated over the trailing 3-year period	0.97
Correlation (5Y) Calculated over the trailing 5-year period	0.98
Correlation (10Y) Calculated over the trailing 10-year period	0.98
Correlation (All Time) Calculated using the full available price history since Feb 2, 2004	0.97

The correlation between VGT and IGM has been stable across timeframes, ranging from 0.97 to 0.98 - a consistent structural relationship.

VGT vs. IGM - Sectors Allocation Comparison

Sectors	VGT	IGM
Technology	98.5%	82.8%
Communication Services	0.5%	16.8%
Financial Services	0.5%	0.2%
Industrials	0.4%	0.2%
Energy	0.3%	0.1%
Consumer Cyclical	0.1%	0.1%
Basic Materials	0.0%	-
Healthcare	0.0%	-
Consumer Defensive	-	-
Real Estate	-	-
Utilities	-	-

Return for Risk

VGT vs. IGM — Risk / Return Rank

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

VGT

VGT Risk / Return Rank: 63
VGT Sharpe Ratio Rank: 72
VGT Sortino Ratio Rank: 62
VGT Omega Ratio Rank: 65
VGT Calmar Ratio Rank: 62
VGT Martin Ratio Rank: 56

IGM

IGM Risk / Return Rank: 65
IGM Sharpe Ratio Rank: 72
IGM Sortino Ratio Rank: 63
IGM Omega Ratio Rank: 66
IGM Calmar Ratio Rank: 62
IGM Martin Ratio Rank: 60

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. IGM - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Vanguard Information Technology ETF (VGT) and iShares Expanded Tech Sector ETF (IGM). 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.

	VGT	IGM	Difference
Sharpe ratio: Return per unit of total volatility	2.30	2.30	0.00
Sortino ratio: Return per unit of downside risk	2.84	2.86	-0.01
Omega ratio: Gain probability vs. loss probability	1.38	1.39	0.00
Calmar ratio: Return relative to maximum drawdown	3.02	3.00	+0.01
Martin ratio: Return relative to average drawdown	9.59	10.47	-0.89
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month.

VGT vs. IGM - Sharpe Ratio Comparison

The current VGT Sharpe Ratio is 2.30, which is comparable to the IGM Sharpe Ratio of 2.30. The chart below compares the historical Sharpe Ratios of VGT and IGM, calculated using daily returns over the previous 12 months. A higher Sharpe Ratio indicates better risk-adjusted performance relative to the risk-free rate.

Sharpe Ratios by Period

	VGT	IGM	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	2.30	2.30	0.00
Sharpe Ratio (5Y) Calculated over the trailing 5-year period	0.81	0.78	+0.03
Sharpe Ratio (10Y) Calculated over the trailing 10-year period	1.01	0.98	+0.02
Sharpe Ratio (All Time) Calculated using the full available price history	0.66	0.47	+0.19

Drawdowns

VGT vs. IGM - Drawdown Comparison

The maximum VGT drawdown since its inception was -54.63%, smaller than the maximum IGM drawdown of -65.59%. Use the drawdown chart below to compare losses from any high point for VGT and IGM.

Drawdown Indicators

	VGT	IGM	Difference
Max Drawdown Largest peak-to-trough decline	-54.63%	-65.59%	+10.96%
Max Drawdown (1Y) Largest decline over 1 year	-16.40%	-16.44%	+0.04%
Max Drawdown (3Y) Largest decline over 3 years	-27.23%	-26.39%	-0.84%
Max Drawdown (5Y) Largest decline over 5 years	-35.07%	-40.68%	+5.61%
Max Drawdown (10Y) Largest decline over 10 years	-35.07%	-40.68%	+5.61%
Current Drawdown Current decline from peak	-8.34%	-8.40%	+0.06%
Average Drawdown Average peak-to-trough decline	-7.95%	-15.23%	+7.28%
Ulcer Index Depth and duration of drawdowns from previous peaks	5.15%	4.71%	+0.44%

Volatility

VGT vs. IGM - Volatility Comparison

Vanguard Information Technology ETF (VGT) and iShares Expanded Tech Sector ETF (IGM) have volatilities of 9.29% and 9.28%, respectively, indicating that both stocks experience similar levels of price fluctuations. This suggests that the risk associated with both stocks, as measured by volatility, is nearly the same. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	VGT	IGM	Difference
Volatility (1M) Calculated over the trailing 1-month period	9.29%	9.28%	+0.01%
Volatility (6M) Calculated over the trailing 6-month period	17.37%	17.46%	-0.09%
Volatility (1Y) Calculated over the trailing 1-year period	21.51%	21.46%	+0.05%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	25.31%	25.82%	-0.51%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	24.68%	24.62%	+0.06%

VGT vs. IGM - Expense Ratio Comparison

VGT has a 0.09% expense ratio, which is lower than IGM's 0.39% expense ratio.

Dividends

VGT vs. IGM - Dividend Comparison

VGT's dividend yield for the trailing twelve months is around 0.33%, more than IGM's 0.13% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
IGM iShares Expanded Tech Sector ETF	0.13%	0.17%	0.22%	0.33%	0.66%	0.16%	0.32%	0.50%	0.57%	0.57%	0.90%	0.79%
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

Can I hold both VGT and IGM in my portfolio?

With a correlation of 0.97, VGT and IGM move almost identically. Holding both adds very little diversification - you're essentially doubling your position in the same market segment. Choosing one is usually more capital-efficient.

Which is riskier, VGT or IGM?

VGT has higher volatility (9.29%) compared to IGM (9.28%). In terms of maximum drawdown, VGT dropped -54.63% vs IGM's -65.59%.

Which ETF is better, VGT or IGM?

On 10-year performance, VGT leads with 24.81% vs 24.14% for IGM. On fees, VGT is cheaper at 0.09% per year. Their volatility is very similar. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, VGT or IGM?

Over the 10-year period, VGT has performed better with a 24.81% return vs 24.14%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, VGT or IGM?

VGT is cheaper with a 0.09% expense ratio, compared with 0.39% for IGM.

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

VGT has the higher dividend yield at 0.33%, compared with 0.13% for IGM.

What is the main difference between VGT and IGM?

VGT tracks MSCI USA IMI Information Technology 25/50 Index, while IGM tracks S&P North American Expanded Technology Sector Index. They also come from different issuers: Vanguard and iShares. Their fees differ too: 0.09% for VGT and 0.39% for IGM.

Which has better risk-adjusted returns?

VGT currently has the higher Sharpe Ratio (2.30 vs 2.30), 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.