VGT vs. IYW
VGT (Vanguard Information Technology ETF) and IYW (iShares U.S. Technology ETF) are both Technology Equities funds - VGT tracks the MSCI USA IMI Information Technology 25/50 Index while IYW tracks the Russell 1000 Technology RIC 22.5/45 Capped Index. Both are passively managed. Over the past 10 years, VGT returned 24.81%/yr vs 25.22%/yr for IYW. With a 0.97 correlation, they move nearly in lockstep. VGT charges 0.09%/yr vs 0.38%/yr for IYW.
Performance
VGT vs. IYW - Performance Comparison
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Returns By Period
In the year-to-date period, VGT achieves a 22.48% return, which is significantly higher than IYW's 20.86% return. Both investments have delivered pretty close results over the past 10 years, with VGT having a 24.81% annualized return and IYW not far ahead at 25.22%.
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%
IYW
- 1D
- -5.92%
- 1M
- 3.93%
- YTD
- 20.86%
- 6M
- 18.95%
- 1Y
- 49.32%
- 3Y*
- 32.37%
- 5Y*
- 21.27%
- 10Y*
- 25.22%
VGT vs. IYW - 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% |
IYW iShares U.S. Technology ETF | 20.86% | 25.38% | 30.25% | 65.44% | -34.83% | 35.44% | 47.45% | 46.64% | -0.93% | 36.60% |
Correlation
The correlation between VGT and IYW is 0.98 - 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 | 0.98 |
Correlation (3Y) Calculated over the trailing 3-year period | 0.99 |
Correlation (5Y) Calculated over the trailing 5-year period | 0.99 |
Correlation (10Y) Calculated over the trailing 10-year period | 0.99 |
Correlation (All Time) Calculated using the full available price history since Feb 2, 2004 | 0.97 |
The correlation between VGT and IYW has been stable across timeframes, ranging from 0.97 to 0.99 - a consistent structural relationship.
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Return for Risk
VGT vs. IYW — Risk / Return Rank
VGT
IYW
VGT vs. IYW - Risk-Adjusted Trends Comparison
This table presents a comparison of risk-adjusted performance metrics for Vanguard Information Technology ETF (VGT) and iShares U.S. Technology ETF (IYW). 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 | IYW | Difference | |
|---|---|---|---|
| Sharpe ratioReturn per unit of total volatility | -0.06 | ||
| Sortino ratioReturn per unit of downside risk | -0.09 | ||
| Omega ratioGain probability vs. loss probability | 1.38 | 1.40 | -0.01 |
| Calmar ratioReturn relative to maximum drawdown | 3.02 | 2.78 | +0.24 |
| Martin ratioReturn relative to average drawdown | 9.59 | 9.08 | +0.51 |
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month. | |||
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Sharpe Ratios by Period
| VGT | IYW | Difference | |
|---|---|---|---|
Sharpe Ratio (1Y)Calculated over the trailing 1-year period | 2.30 | 2.36 | -0.06 |
Sharpe Ratio (5Y)Calculated over the trailing 5-year period | 0.81 | 0.82 | -0.01 |
Sharpe Ratio (10Y)Calculated over the trailing 10-year period | 1.01 | 1.01 | 0.00 |
Sharpe Ratio (All Time)Calculated using the full available price history | 0.66 | 0.34 | +0.32 |
Drawdowns
VGT vs. IYW - Drawdown Comparison
The maximum VGT drawdown since its inception was -54.63%, smaller than the maximum IYW drawdown of -81.90%. Use the drawdown chart below to compare losses from any high point for VGT and IYW.
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Drawdown Indicators
| VGT | IYW | Difference | |
|---|---|---|---|
Max DrawdownLargest peak-to-trough decline | -54.63% | -81.90% | +27.27% |
Max Drawdown (1Y)Largest decline over 1 year | -16.40% | -17.81% | +1.41% |
Max Drawdown (3Y)Largest decline over 3 years | -27.23% | -26.47% | -0.76% |
Max Drawdown (5Y)Largest decline over 5 years | -35.07% | -39.44% | +4.37% |
Max Drawdown (10Y)Largest decline over 10 years | -35.07% | -39.44% | +4.37% |
Current DrawdownCurrent decline from peak | -8.34% | -7.19% | -1.15% |
Average DrawdownAverage peak-to-trough decline | -7.95% | -34.65% | +26.70% |
Ulcer IndexDepth and duration of drawdowns from previous peaks | 5.15% | 5.45% | -0.30% |
Volatility
VGT vs. IYW - Volatility Comparison
Vanguard Information Technology ETF (VGT) has a higher volatility of 9.29% compared to iShares U.S. Technology ETF (IYW) at 8.75%. This indicates that VGT's price experiences larger fluctuations and is considered to be riskier than IYW based on this measure. The chart below showcases a comparison of their rolling one-month volatility.
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Volatility by Period
| VGT | IYW | Difference | |
|---|---|---|---|
Volatility (1M)Calculated over the trailing 1-month period | 9.29% | 8.75% | +0.54% |
Volatility (6M)Calculated over the trailing 6-month period | 17.37% | 17.04% | +0.33% |
Volatility (1Y)Calculated over the trailing 1-year period | 21.51% | 20.98% | +0.53% |
Volatility (5Y)Calculated over the trailing 5-year period, annualized | 25.31% | 25.99% | -0.68% |
Volatility (10Y)Calculated over the trailing 10-year period, annualized | 24.68% | 25.16% | -0.48% |
VGT vs. IYW - Expense Ratio Comparison
VGT has a 0.09% expense ratio, which is lower than IYW's 0.38% expense ratio.
Dividends
VGT vs. IYW - Dividend Comparison
VGT's dividend yield for the trailing twelve months is around 0.33%, more than IYW's 0.11% yield.
| Position | TTM | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
IYW iShares U.S. Technology ETF | 0.11% | 0.14% | 0.21% | 0.34% | 0.50% | 0.31% | 0.56% | 0.72% | 0.92% | 0.82% | 1.14% | 1.12% |
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
With a correlation of 0.98, VGT and IYW 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.
VGT has higher volatility (9.29%) compared to IYW (8.75%). In terms of maximum drawdown, VGT dropped -54.63% vs IYW's -81.90%.
On 10-year performance, IYW leads with 25.22% vs 24.81% for VGT. On fees, VGT is cheaper at 0.09% per year. On volatility, IYW has been the lower-risk option at 8.75%. The better choice depends on whether you care most about return, fees, risk, or income.
Over the 10-year period, IYW has performed better with a 25.22% return vs 24.81%. 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 0.38% for IYW.
VGT has the higher dividend yield at 0.33%, compared with 0.11% for IYW.
VGT tracks MSCI USA IMI Information Technology 25/50 Index, while IYW tracks Russell 1000 Technology RIC 22.5/45 Capped Index. They also come from different issuers: Vanguard and iShares. Their fees differ too: 0.09% for VGT and 0.38% for IYW.
IYW currently has the higher Sharpe Ratio (2.36 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.
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