VGT vs. SHLD

Last updated Jun 13, 2026

VGT (Vanguard Information Technology ETF) and SHLD (Global X Defense Tech ETF) are both exchange-traded funds - VGT is a Technology Equities fund tracking the MSCI USA IMI Information Technology 25/50 Index, while SHLD is a Aerospace & Defense fund tracking the Global X Defense Tech Index. Both are passively managed. Over the past year, VGT returned 47.99% vs 10.40% for SHLD. At a 0.38 correlation, their price movements are largely independent. VGT charges 0.09%/yr vs 0.50%/yr for SHLD.

Performance

VGT vs. SHLD - Performance Comparison

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

Returns By Period

In the year-to-date period, VGT achieves a 24.03% return, which is significantly higher than SHLD's -1.50% return.

VGT

• 1D: 0.58%
• 1M: 2.90%
• YTD: 24.03%
• 6M: 24.13%
• 1Y: 47.99%
• 3Y*: 29.84%
• 5Y*: 20.35%
• 10Y*: 25.19%

SHLD

• 1D: -2.04%
• 1M: 0.05%
• YTD: -1.50%
• 6M: -1.03%
• 1Y: 10.40%
• 3Y*: —
• 5Y*: —
• 10Y*: —

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

VGT vs. SHLD - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023
VGT Vanguard Information Technology ETF	24.03%	21.77%	29.30%	12.82%
SHLD Global X Defense Tech ETF	-1.50%	74.16%	35.03%	12.89%

Correlation

The correlation between VGT and SHLD is 0.37, which is low. Their price movements are largely independent, making them effective diversification partners.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	0.37
Correlation (All Time) Calculated using the full available price history since Sep 13, 2023	0.38

VGT vs. SHLD - Sectors Allocation Comparison

Sectors	VGT	SHLD
Technology	98.5%	11.8%
Communication Services	0.5%	-
Financial Services	0.5%	-
Industrials	0.4%	88.2%
Energy	0.3%	-
Consumer Cyclical	0.1%	-
Basic Materials	0.0%	-
Healthcare	0.0%	-
Consumer Defensive	-	-
Real Estate	-	-
Utilities	-	-

Return for Risk

VGT vs. SHLD — Risk / Return Rank

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

VGT

VGT Risk / Return Rank: 70
VGT Sharpe Ratio Rank: 79
VGT Sortino Ratio Rank: 71
VGT Omega Ratio Rank: 72
VGT Calmar Ratio Rank: 67
VGT Martin Ratio Rank: 59

SHLD

SHLD Risk / Return Rank: 16
SHLD Sharpe Ratio Rank: 17
SHLD Sortino Ratio Rank: 17
SHLD Omega Ratio Rank: 16
SHLD Calmar Ratio Rank: 16
SHLD Martin Ratio Rank: 16

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. SHLD - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Vanguard Information Technology ETF (VGT) and Global X Defense Tech ETF (SHLD). 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	SHLD	Difference
Sharpe ratio: Return per unit of total volatility	2.19	0.43	+1.77
Sortino ratio: Return per unit of downside risk	2.74	0.78	+1.96
Omega ratio: Gain probability vs. loss probability	1.36	1.09	+0.28
Calmar ratio: Return relative to maximum drawdown	2.94	0.52	+2.42
Martin ratio: Return relative to average drawdown	9.11	1.28	+7.82

VGT vs. SHLD - Sharpe Ratio Comparison

The current VGT Sharpe Ratio is 2.19, which is higher than the SHLD Sharpe Ratio of 0.43. The chart below compares the historical Sharpe Ratios of VGT and SHLD, 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. SHLD - Drawdown Comparison

The maximum VGT drawdown since its inception was -54.63%, which is greater than SHLD's maximum drawdown of -20.10%. Use the drawdown chart below to compare losses from any high point for VGT and SHLD.

Drawdown Indicators

	VGT	SHLD	Difference
Max Drawdown Largest peak-to-trough decline	-54.63%	-20.10%	-34.53%
Max Drawdown (1Y) Largest decline over 1 year	-16.40%	-20.10%	+3.70%
Max Drawdown (3Y) Largest decline over 3 years	-27.23%	—	—
Max Drawdown (5Y) Largest decline over 5 years	-35.07%	—	—
Max Drawdown (10Y) Largest decline over 10 years	-35.07%	—	—
Current Drawdown Current decline from peak	-7.18%	-18.20%	+11.02%
Average Drawdown Average peak-to-trough decline	-7.95%	-3.34%	-4.61%
Ulcer Index Depth and duration of drawdowns from previous peaks	5.28%	8.12%	-2.84%

Volatility

VGT vs. SHLD - Volatility Comparison

Vanguard Information Technology ETF (VGT) has a higher volatility of 10.00% compared to Global X Defense Tech ETF (SHLD) at 9.05%. This indicates that VGT's price experiences larger fluctuations and is considered to be riskier than SHLD based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	VGT	SHLD	Difference
Volatility (1M) Calculated over the trailing 1-month period	10.00%	9.05%	+0.95%
Volatility (6M) Calculated over the trailing 6-month period	18.00%	19.94%	-1.94%
Volatility (1Y) Calculated over the trailing 1-year period	22.00%	24.55%	-2.55%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	25.40%	21.29%	+4.11%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	24.72%	21.29%	+3.43%

VGT vs. SHLD - Expense Ratio Comparison

VGT has a 0.09% expense ratio, which is lower than SHLD's 0.50% expense ratio.

Dividends

VGT vs. SHLD - Dividend Comparison

VGT's dividend yield for the trailing twelve months is around 0.33%, less than SHLD's 0.56% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
SHLD Global X Defense Tech ETF	0.56%	0.55%	0.53%	0.26%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%
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 SHLD in my portfolio?

VGT and SHLD have a correlation of 0.37, 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 SHLD?

VGT has higher volatility (10.00%) compared to SHLD (9.05%). In terms of maximum drawdown, VGT dropped -54.63% vs SHLD's -20.10%.

Which ETF is better, VGT or SHLD?

On 1-year performance, VGT leads with 47.99% vs 10.40% for SHLD. On fees, VGT is cheaper at 0.09% per year. On volatility, SHLD has been the lower-risk option at 9.05%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, VGT or SHLD?

Over the 1-year period, VGT has performed better with a 47.99% return vs 10.40%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, VGT or SHLD?

VGT is cheaper with a 0.09% expense ratio, compared with 0.50% for SHLD.

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

SHLD has the higher dividend yield at 0.56%, compared with 0.33% for VGT.

What is the main difference between VGT and SHLD?

VGT is categorized as Technology Equities, while SHLD is Aerospace & Defense. VGT tracks MSCI USA IMI Information Technology 25/50 Index, while SHLD tracks Global X Defense Tech Index. They also come from different issuers: Vanguard and Global X. Their fees differ too: 0.09% for VGT and 0.50% for SHLD.

Which has better risk-adjusted returns?

VGT currently has the higher Sharpe Ratio (2.19 vs 0.43), 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.