VGT vs. IGV

Last updated Jul 16, 2026

VGT (Vanguard Information Technology ETF) and IGV (iShares Expanded Tech-Software Sector ETF) are both Technology Equities funds - VGT tracks the MSCI USA IMI Information Technology 25/50 Index while IGV tracks the S&P North American Expanded Technology Software Index. Both are passively managed. Over the past 10 years, VGT returned 24.77%/yr vs 15.82%/yr for IGV. Their correlation of 0.86 suggests significant overlap in exposure. VGT charges 0.09%/yr vs 0.39%/yr for IGV.

Performance

VGT vs. IGV - Performance Comparison

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

Returns By Period

In the year-to-date period, VGT achieves a 23.92% return, which is significantly higher than IGV's -11.10% return. Over the past 10 years, VGT has outperformed IGV with an annualized return of 24.77%, while IGV has yielded a comparatively lower 15.82% annualized return.

VGT

• 1D: -0.52%
• 1M: -3.39%
• 6M: 23.67%
• YTD: 23.92%
• 1Y: 38.47%
• 3Y*: 28.34%
• 5Y*: 19.08%
• 10Y*: 24.77%

IGV

• 1D: 0.33%
• 1M: 1.36%
• 6M: -7.04%
• YTD: -11.10%
• 1Y: -13.79%
• 3Y*: 9.41%
• 5Y*: 3.87%
• 10Y*: 15.82%

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

VGT vs. IGV - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
VGT Vanguard Information Technology ETF	23.92%	21.77%	29.30%	52.66%	-29.70%	30.45%	46.04%	48.62%	2.46%	37.08%
IGV iShares Expanded Tech-Software Sector ETF	-11.10%	5.56%	23.41%	58.56%	-35.65%	12.30%	52.86%	34.33%	12.44%	42.16%

Correlation

The correlation between VGT and IGV is 0.60, 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	0.60
Correlation (3Y) Calculated over the trailing 3-year period	0.75
Correlation (5Y) Calculated over the trailing 5-year period	0.83
Correlation (10Y) Calculated over the trailing 10-year period	0.85
Correlation (All Time) Calculated using the full available price history since Jan 30, 2004	0.86

Over the past year, the correlation between VGT and IGV has dropped to 0.60 - well below their long-term average of 0.86, suggesting their price drivers have been diverging.

VGT vs. IGV - Sectors Allocation Comparison

Sectors	VGT	IGV
Technology	98.5%	89.1%
Communication Services	0.6%	8.6%
Financial Services	0.5%	1.9%
Energy	0.3%	-
Industrials	0.3%	0.1%
Consumer Cyclical	0.1%	0.3%
Basic Materials	0.0%	-
Healthcare	0.0%	-
Consumer Defensive	-	-
Real Estate	-	-
Utilities	-	-

Return for Risk

VGT vs. IGV — Risk / Return Rank

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

VGT

VGT Risk / Return Rank: 57
VGT Sharpe Ratio Rank: 62
VGT Sortino Ratio Rank: 56
VGT Omega Ratio Rank: 56
VGT Calmar Ratio Rank: 59
VGT Martin Ratio Rank: 50

IGV

IGV Risk / Return Rank: 6
IGV Sharpe Ratio Rank: 5
IGV Sortino Ratio Rank: 5
IGV Omega Ratio Rank: 5
IGV Calmar Ratio Rank: 6
IGV Martin Ratio Rank: 6

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. IGV - Risk-Adjusted Trends Comparison

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

	VGT	IGV	Difference
Sharpe ratio: Return per unit of total volatility	1.65	-0.48	+2.14
Sortino ratio: Return per unit of downside risk	2.17	-0.51	+2.68
Omega ratio: Gain probability vs. loss probability	1.28	0.94	+0.34
Calmar ratio: Return relative to maximum drawdown	2.36	-0.38	+2.73
Martin ratio: Return relative to average drawdown	6.80	-0.74	+7.54

VGT vs. IGV - Sharpe Ratio Comparison

The current VGT Sharpe Ratio is 1.65, which is higher than the IGV Sharpe Ratio of -0.48. The chart below compares the historical Sharpe Ratios of VGT and IGV, 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

VGT vs. IGV - Drawdown Comparison

The maximum VGT drawdown since its inception was -54.63%, smaller than the maximum IGV drawdown of -63.45%. Use the drawdown chart below to compare losses from any high point for VGT and IGV.

Drawdown Indicators

	VGT	IGV	Difference
Max Drawdown Largest peak-to-trough decline	-54.63%	-63.45%	+8.82%
Max Drawdown (1Y) Largest decline over 1 year	-16.40%	-36.61%	+20.21%
Max Drawdown (3Y) Largest decline over 3 years	-27.23%	-36.61%	+9.38%
Max Drawdown (5Y) Largest decline over 5 years	-35.07%	-45.85%	+10.78%
Max Drawdown (10Y) Largest decline over 10 years	-35.07%	-45.85%	+10.78%
Current Drawdown Current decline from peak	-7.26%	-20.23%	+12.97%
Average Drawdown Average peak-to-trough decline	-7.94%	-14.48%	+6.54%
Ulcer Index Depth and duration of drawdowns from previous peaks	5.67%	18.75%	-13.08%

Volatility

VGT vs. IGV - Volatility Comparison

Vanguard Information Technology ETF (VGT) has a higher volatility of 9.18% compared to iShares Expanded Tech-Software Sector ETF (IGV) at 8.00%. This indicates that VGT's price experiences larger fluctuations and is considered to be riskier than IGV based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	VGT	IGV	Difference
Volatility (1M) Calculated over the trailing 1-month period	9.18%	8.00%	+1.18%
Volatility (6M) Calculated over the trailing 6-month period	19.41%	25.35%	-5.94%
Volatility (1Y) Calculated over the trailing 1-year period	23.36%	28.66%	-5.30%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	25.69%	28.09%	-2.40%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	24.80%	26.40%	-1.60%

VGT vs. IGV - Expense Ratio Comparison

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

Dividends

VGT vs. IGV - Dividend Comparison

VGT's dividend yield for the trailing twelve months is around 0.37%, more than IGV's 0.02% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
IGV iShares Expanded Tech-Software Sector ETF	0.02%	0.00%	0.00%	0.01%	0.01%	0.00%	0.35%	0.02%	0.16%	0.09%	0.82%	0.22%
VGT Vanguard Information Technology ETF	0.37%	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 IGV in my portfolio?

VGT and IGV have a correlation of 0.60, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, VGT or IGV?

VGT has higher volatility (9.18%) compared to IGV (8.00%). In terms of maximum drawdown, VGT dropped -54.63% vs IGV's -63.45%.

Which ETF is better, VGT or IGV?

On 10-year performance, VGT leads with 24.77% vs 15.82% for IGV. On fees, VGT is cheaper at 0.09% per year. On volatility, IGV has been the lower-risk option at 8.00%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, VGT or IGV?

Over the 10-year period, VGT has performed better with a 24.77% return vs 15.82%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, VGT or IGV?

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

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

VGT has the higher dividend yield at 0.37%, compared with 0.02% for IGV.

What is the main difference between VGT and IGV?

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

Which has better risk-adjusted returns?

VGT currently has the higher Sharpe Ratio (1.65 vs -0.48), 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.