VGT vs. NXTG

Last updated Jun 6, 2026

VGT (Vanguard Information Technology ETF) and NXTG (First Trust IndXX NextG ETF) are both Technology Equities funds - VGT tracks the MSCI USA IMI Information Technology 25/50 Index while NXTG tracks the Indxx 5G & NextG Thematic Index. Both are passively managed. Over the past 10 years, VGT returned 24.81%/yr vs 16.74%/yr for NXTG. A 0.74 correlation means they provide meaningful diversification when combined. VGT charges 0.09%/yr vs 0.70%/yr for NXTG.

Performance

VGT vs. NXTG - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in Vanguard Information Technology ETF (VGT) and First Trust IndXX NextG ETF (NXTG). 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 lower than NXTG's 41.50% return. Over the past 10 years, VGT has outperformed NXTG with an annualized return of 24.81%, while NXTG has yielded a comparatively lower 16.74% annualized return.

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%

NXTG

• 1D: -6.78%
• 1M: 6.80%
• YTD: 41.50%
• 6M: 41.02%
• 1Y: 66.28%
• 3Y*: 31.77%
• 5Y*: 17.08%
• 10Y*: 16.74%

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

VGT vs. NXTG - 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%
NXTG First Trust IndXX NextG ETF	41.50%	28.46%	12.85%	28.74%	-24.70%	21.81%	27.58%	29.58%	-17.25%	28.02%

Correlation

The correlation between VGT and NXTG is 0.82, 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	0.82
Correlation (3Y) Calculated over the trailing 3-year period	0.79
Correlation (5Y) Calculated over the trailing 5-year period	0.83
Correlation (10Y) Calculated over the trailing 10-year period	0.78
Correlation (All Time) Calculated using the full available price history since Feb 22, 2011	0.74

The correlation between VGT and NXTG has been stable across timeframes, ranging from 0.74 to 0.83 - a consistent structural relationship.

VGT vs. NXTG - Sectors Allocation Comparison

Sectors	VGT	NXTG
Technology	98.5%	66.1%
Communication Services	0.5%	21.7%
Financial Services	0.5%	-
Industrials	0.4%	4.3%
Energy	0.3%	-
Consumer Cyclical	0.1%	0.4%
Basic Materials	0.0%	-
Healthcare	0.0%	-
Consumer Defensive	-	-
Real Estate	-	7.5%
Utilities	-	-

Return for Risk

VGT vs. NXTG — 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

NXTG

NXTG Risk / Return Rank: 93
NXTG Sharpe Ratio Rank: 94
NXTG Sortino Ratio Rank: 90
NXTG Omega Ratio Rank: 92
NXTG Calmar Ratio Rank: 93
NXTG Martin Ratio Rank: 93

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. NXTG - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Vanguard Information Technology ETF (VGT) and First Trust IndXX NextG ETF (NXTG). 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	NXTG	Difference
Sharpe ratio: Return per unit of total volatility	2.30	3.36	-1.06
Sortino ratio: Return per unit of downside risk	2.84	4.08	-1.24
Omega ratio: Gain probability vs. loss probability	1.38	1.60	-0.21
Calmar ratio: Return relative to maximum drawdown	3.02	6.48	-3.47
Martin ratio: Return relative to average drawdown	9.59	24.74	-15.16
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. NXTG - Sharpe Ratio Comparison

The current VGT Sharpe Ratio is 2.30, which is lower than the NXTG Sharpe Ratio of 3.36. The chart below compares the historical Sharpe Ratios of VGT and NXTG, 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	NXTG	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	2.30	3.36	-1.06
Sharpe Ratio (5Y) Calculated over the trailing 5-year period	0.81	0.94	-0.13
Sharpe Ratio (10Y) Calculated over the trailing 10-year period	1.01	0.88	+0.12
Sharpe Ratio (All Time) Calculated using the full available price history	0.66	0.65	+0.01

Drawdowns

VGT vs. NXTG - Drawdown Comparison

The maximum VGT drawdown since its inception was -54.63%, which is greater than NXTG's maximum drawdown of -33.61%. Use the drawdown chart below to compare losses from any high point for VGT and NXTG.

Drawdown Indicators

	VGT	NXTG	Difference
Max Drawdown Largest peak-to-trough decline	-54.63%	-33.61%	-21.02%
Max Drawdown (1Y) Largest decline over 1 year	-16.40%	-10.28%	-6.12%
Max Drawdown (3Y) Largest decline over 3 years	-27.23%	-17.75%	-9.48%
Max Drawdown (5Y) Largest decline over 5 years	-35.07%	-33.61%	-1.46%
Max Drawdown (10Y) Largest decline over 10 years	-35.07%	-33.61%	-1.46%
Current Drawdown Current decline from peak	-8.34%	-9.19%	+0.85%
Average Drawdown Average peak-to-trough decline	-7.95%	-7.87%	-0.08%
Ulcer Index Depth and duration of drawdowns from previous peaks	5.15%	2.69%	+2.46%

Volatility

VGT vs. NXTG - Volatility Comparison

The current volatility for Vanguard Information Technology ETF (VGT) is 9.29%, while First Trust IndXX NextG ETF (NXTG) has a volatility of 11.33%. This indicates that VGT experiences smaller price fluctuations and is considered to be less risky than NXTG based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	VGT	NXTG	Difference
Volatility (1M) Calculated over the trailing 1-month period	9.29%	11.33%	-2.04%
Volatility (6M) Calculated over the trailing 6-month period	17.37%	17.07%	+0.30%
Volatility (1Y) Calculated over the trailing 1-year period	21.51%	19.82%	+1.69%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	25.31%	18.20%	+7.11%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	24.68%	19.00%	+5.68%

VGT vs. NXTG - Expense Ratio Comparison

VGT has a 0.09% expense ratio, which is lower than NXTG's 0.70% expense ratio.

Dividends

VGT vs. NXTG - Dividend Comparison

VGT's dividend yield for the trailing twelve months is around 0.33%, less than NXTG's 1.21% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
NXTG First Trust IndXX NextG ETF	1.21%	1.56%	1.51%	2.15%	2.04%	1.97%	1.04%	0.77%	1.27%	1.65%	1.23%	1.11%
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 NXTG in my portfolio?

VGT and NXTG have a correlation of 0.82, 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 NXTG?

NXTG has higher volatility (11.33%) compared to VGT (9.29%). In terms of maximum drawdown, VGT dropped -54.63% vs NXTG's -33.61%.

Which ETF is better, VGT or NXTG?

On 10-year performance, VGT leads with 24.81% vs 16.74% for NXTG. On fees, VGT is cheaper at 0.09% per year. On volatility, VGT has been the lower-risk option at 9.29%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, VGT or NXTG?

Over the 10-year period, VGT has performed better with a 24.81% return vs 16.74%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, VGT or NXTG?

VGT is cheaper with a 0.09% expense ratio, compared with 0.70% for NXTG.

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

NXTG has the higher dividend yield at 1.21%, compared with 0.33% for VGT.

What is the main difference between VGT and NXTG?

VGT tracks MSCI USA IMI Information Technology 25/50 Index, while NXTG tracks Indxx 5G & NextG Thematic Index. They also come from different issuers: Vanguard and First Trust. Their fees differ too: 0.09% for VGT and 0.70% for NXTG.

Which has better risk-adjusted returns?

NXTG currently has the higher Sharpe Ratio (3.36 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.