IYW vs VGT Stock Comparison: AI Score, Valuation, Performance and Upside
IYW and VGT both target technology sector exposure but take different paths to get there — IYW via the Russell 1000 Technology RIC 22.5/45 Capped Index, and VGT via the MSCI US Investable Market Information Technology Index. The practical differences come down to issuer, cost structure, and the specific index rules each fund follows, since both are pursuing a similar investment outcome.
IYW vs VGT is largely a question of which issuer and index methodology you trust more for technology sector exposure — the underlying investment case is similar, so cost, liquidity, and tracking precision tend to be the deciding factors.
VGT holds the edge across 5 of 5 key metrics in this comparison. VGT has delivered stronger 1-year price return (+33.84% vs +33.78% for IYW).
- want capped-weight technology exposure via a Russell-based index
- prefer iShares (BlackRock)'s approach and fund lineup
- value capping rules limit single-stock domination somewhat more than XLK
- are comfortable with higher expense ratio than XLK or FTEC
- want the lowest-cost, broadest technology sector fund
- prefer Vanguard's approach and fund lineup
- value one of the lowest expense ratios among tech sector ETFs
- are comfortable with still concentrated at the top in mega-cap names
| Metric | IYW | VGT |
|---|---|---|
| ETF scorei | 85.0 | 87.0 |
| Latest closei | $256.87 | $122.31 |
| 1M returni | +3.68% | +2.95% |
| 6M returni | +39.31% | +39.08% |
| 1Y returni | +33.78% | +33.84% |
The ETF score weights long-term returns and risk-adjusted performance most heavily, but still rewards low expense ratios, larger fund size, and broader diversification — so it can favor low-cost, broad, mega-cap funds over smaller thematic or actively-managed funds even when the latter have delivered stronger returns.
How much would $10,000 be worth today if invested at the start of each period, with all dividends reinvested?
| Period | IYW | VGT |
|---|---|---|
| 1Y ago | $13.39K (+33.9%) started 2025-09-18 | $13.44K (+34.4%) started 2025-09-18 |
| 5Y ago | $25.52K (+155.2%) started 2021-09-20 | $25.46K (+154.6%) started 2021-09-20 |
| 10Y ago | $98.17K (+881.7%) started 2016-09-19 | $98.8K (+888.0%) started 2016-09-19 |
Hypothetical — past performance does not guarantee future results.
| Metric | IYW | VGT |
|---|---|---|
| Expense ratioi | 0.37% | 0.09% |
| Total assets (AUM)i | $25.22B | $170.65B |
| Dividend yieldi | 0.10% | 0.36% |
| Trailing P/Ei | 29.91 | 32.63 |
| Betai | 1.37 | 1.37 |
| 52-week change | 33.78% | 33.84% |
| Metric | IYW | VGT |
|---|---|---|
| 1Y returni | +33.78% | +33.84% |
| 6M returni | +39.31% | +39.08% |
| 1M returni | +3.68% | +2.95% |
| 1Y Sharpe ratio | 1.14 | 1.12 |
| Betai | 1.37 | 1.37 |
| Dividend yieldi | 0.10% | 0.36% |
| 5Y CAGR | +20.23% | +19.77% |
Over the past year, IYW and VGT have moved strongly in the same direction (correlation of 0.99), based on daily returns.
Lower drawdown and smaller single-period drops generally indicate a smoother ride, though they do not guarantee lower future risk.
| Period | Metric | IYW | VGT |
|---|---|---|---|
| 1Y | Growthi | +33.78% | +33.84% |
| CAGRi | +33.81% | +33.87% | |
| Volatilityi | 24.25% | 24.84% | |
| Sharpe ratioi | 1.14 | 1.12 | |
| Sortino ratioi | 1.67 | 1.64 | |
| Max drawdowni | 17.81% | 16.40% | |
| Current drawdowni | 1.13% | 2.64% | |
| Avg drawdowni | 4.93% | 5.19% | |
| Ulcer Indexi | 6.15% | 6.29% | |
| Max daily dropi | 5.92% | 6.14% | |
| Max wkly dropi | 8.60% | 9.34% | |
| 5Y | Growthi | +150.92% | +146.17% |
| CAGRi | +20.23% | +19.77% | |
| Volatilityi | 26.60% | 26.00% | |
| Sharpe ratioi | 0.66 | 0.65 | |
| Sortino ratioi | 0.95 | 0.94 | |
| Max drawdowni | 39.44% | 35.07% | |
| Current drawdowni | 1.13% | 2.64% | |
| Avg drawdowni | 10.18% | 9.29% | |
| Ulcer Indexi | 14.82% | 13.20% | |
| Max daily dropi | 6.89% | 7.24% | |
| Max wkly dropi | 13.60% | 14.00% | |
| 10Y | Growthi | +825.02% | +800.52% |
| CAGRi | +24.93% | +24.59% | |
| Volatilityi | 25.43% | 24.98% | |
| Sharpe ratioi | 0.83 | 0.83 | |
| Sortino ratioi | 1.18 | 1.18 | |
| Max drawdowni | 39.44% | 35.07% | |
| Current drawdowni | 1.13% | 2.64% | |
| Avg drawdowni | 6.89% | 6.36% | |
| Ulcer Indexi | 11.33% | 10.26% | |
| Max daily dropi | 13.62% | 13.49% | |
| Max wkly dropi | 17.83% | 17.57% |
| Category | IYW | VGT |
|---|---|---|
| Fund name | iShares U.S. Technology ETF | Vanguard Information Technology Index Fund ETF Shares |
| Type | ETF | ETF |
| Expense ratioi | 0.37% | 0.09% |
| Total assets (AUM)i | $25.22B | $170.65B |
| Dividend yieldi | 0.10% | 0.36% |
- Capping rules limit single-stock domination somewhat more than XLK
- Long-standing, established sector ETF
- Backed by BlackRock's iShares infrastructure
- One of the lowest expense ratios among tech sector ETFs
- Broadest tech-stock universe of the major sector funds
- Vanguard's index-tracking efficiency and tax friendliness
- Higher expense ratio than XLK or FTEC
- Lower liquidity and thinner options market than XLK
- Still concentrated in the same mega-cap tech leaders
- Still concentrated at the top in mega-cap names
- Excludes Amazon and Meta under MSCI's sector classification
- Sector-fund concentration risk applies regardless of breadth
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