What is the core difference in investment focus between IGV and VGT?

IGV is an expanded tech-software sector ETF, primarily investing in software companies like Palantir and Microsoft. VGT, however, is a broader information technology ETF covering various subsectors including hardware and services. While IGV focuses narrowly on software growth, VGT provides diversified exposure across the entire tech landscape, including firms like NVIDIA and Apple. This difference in scope means IGV is more specialised, while VGT captures wider trends within the technology industry.

How do the expense ratios of IGV and VGT differ?

The expense ratio represents annual fees. IGV has an expense ratio of 0.38%, which is relatively high compared to broader technology funds. VGT has a significantly lower expense ratio of 0.09%. This means holding VGT is less costly, as investors retain a larger portion of their returns over time. Lower fees reduce the drag on performance, making the fee difference a crucial factor for long-term investment efficiency between these two funds.

What does the inception date signify for IGV and VGT?

The inception date marks when a fund was established and began trading. IGV was established on 10 July 2001, providing a long history. VGT began on 26 January 2004. These dates indicate the funds' operational longevity. A longer history allows investors to see performance across various market cycles, providing more data for analysis. Both funds are established, but their differing inception dates mean their performance track records cover slightly different timeframes.

What are the top holdings in IGV and VGT?

IGV's top holdings are heavily software-focused, including Palantir and CrowdStrike. VGT has holdings like NVIDIA and Apple, reflecting its broader tech focus. Both include Microsoft in their top ten. IGV's holdings are concentrated in software and cybersecurity firms, offering targeted sector exposure. Conversely, VGT features a diversified portfolio including hardware giants. This distinction shows IGV is a specialist software play, whereas VGT captures the entire technology value chain through a varied collection of leading tech companies.

How much overlap exists between the top ten holdings of IGV and VGT?

There is limited overlap between the top ten holdings of these two funds. Only Palantir and Microsoft appear in the top ten lists of both IGV and VGT. The other eight holdings are unique to each fund. IGV features companies like Oracle and Adobe, while VGT includes firms like Broadcom and Micron. This minimal overlap confirms that despite both being tech ETFs, they provide substantially different exposure, with IGV being software-centric and VGT being more broadly diversified.

How do the dividend yields of IGV and VGT compare?

Both funds have low dividend yields, reflecting a focus on growth rather than income. IGV offers a dividend yield of 0.02%, while VGT provides a slightly higher yield of 0.34%. These figures are typical for technology ETFs, which often reinvest profits into research and development rather than distributing them. IGV's extremely low yield highlights its concentration on high-growth software firms, while VGT's marginally higher yield suggests a broad mix that includes some dividend-paying tech giants.

What is the significance of the net asset value for these funds?

Net assets, or assets under management, indicate a fund's size. IGV has net assets of $14.1 billion, while VGT has significantly larger assets of $150.2 billion. VGT's greater size generally implies higher liquidity and economies of scale, often resulting in lower trading costs and expense ratios. While IGV is still a substantial fund, VGT's scale reflects its broad appeal to institutional and retail investors seeking comprehensive technology exposure at a lower cost per dollar invested.

What specific index methodologies do IGV and VGT track?

The specific index methodologies for tracking are not available in the provided data. This limits transparency into exactly how the underlying assets are selected and weighted. Investors often review these details to understand if a fund uses market-capitalisation weighting or other strategies. Without this data, one must rely on the general description of IGV as expanded tech-software and VGT as information technology to infer the index characteristics, highlighting a gap in detailed technical information for these comparison purposes.

How do sector weights impact the risk profile of IGV and VGT?

Information regarding current sector weights is not available for these funds. However, based on holdings, VGT exhibits high concentration risk with its top three holdings accounting for over 45% of total weight. IGV, being a software fund, is inherently concentrated within that single subsector. The lack of detailed sector weight data means investors cannot fully quantify the sub-sector diversification within VGT's broader mandate or the precise software distribution within IGV's portfolio.

Which fund is more suitable for a software-focused investment?

For investors seeking targeted software sector exposure, IGV is designed specifically for this purpose. Its holdings include prominent software firms and cybersecurity leaders. However, it has a higher expense ratio of 0.38% and lower liquidity compared to VGT. VGT is a broader technology fund. While it includes software companies like Palantir and Microsoft, it also heavily features hardware and services stocks. Therefore, IGV aligns better with a pure software thesis, whereas VGT serves a general tech allocation.

How do the fee differences affect long-term returns between IGV and VGT?

The fee difference is 0.29 percentage points, with IGV at 0.38% and VGT at 0.09%. Over time, this compounding fee drag means VGT investors pay less annually for fund management. For example, on an initial investment of $10,000, the difference represents $29 in annual fees. Lower expenses are a predictable benefit, as they ensure more of the fund's gross performance is passed to shareholders, making cost analysis a critical step when comparing these technology ETFs.

Why is transparency regarding index tracking and sector weights currently limited for these funds?

The data for both IGV and VGT indicates that specific index methodology and sector weight details are not available. This lack of granularity can hinder deep analysis, as investors cannot verify the exact rules governing asset selection or the precise breakdown of sub-sectors like semiconductors versus software within VGT, or enterprise versus consumer software within IGV. Consequently, investors must rely on high-level fund descriptions and top holdings to gauge portfolio characteristics rather than granular data.

IGV vs VGT

Two funds, one decision: we compare cost, performance and what each ETF actually holds in September 2026.

This page compares IGV and VGT, naming both funds and outlining their differences in fees, holdings, and dividends. It explains how each fund tracks its market, highlighting IGV's focus on software versus VGT's broader technology reach. Please note: Educational content, not financial advice.

Fund Snapshot

Key Fund Metrics

IGV

Metric

VGT

0.38%

Expense Ratio

0.09%

0.02%

Dividend Yield

0.34%

$14.09B

Net Assets

$150.23B

109

Holdings

323

Jul 10, 2001

Inception Date

Jan 26, 2004

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Index Tracked

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Technology

Fund Category

Technology

VGT costs about $29.00 less per year for every $10,000 invested.

Shared Top Holdings

Holding	IGV	VGT
PLTRPalantir Technologies Inc.	8.71%	1.61%
MSFTMicrosoft Corporation	8.35%	11.52%

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Investment Analysis

IGV

Pros

iShares Expanded Tech-Software Sector ETF offers exposure to the software sector with a moderate asset base of $14.1 billion.
The fund has a long history, having been established on July 10, 2001.
Key holdings include prominent software firms like Palantir and Microsoft, alongside cybersecurity leaders such as CrowdStrike and Palo Alto Networks.

Considerations

The expense ratio of 0.38% is relatively high compared to broader technology ETFs like VGT.
The dividend yield is low at 0.02%, reflecting the fund's focus on growth-oriented software companies.
Information regarding the specific index methodology and current sector weights is not available in the provided data.

VGT

Pros

Vanguard Information Technology ETF has significantly higher net assets of $150.2 billion, indicating greater liquidity and scale.
The fund's expense ratio of 0.09% is substantially lower than that of its counterpart, reducing overall holding costs.
It features a diversified portfolio of top technology companies including NVIDIA, Apple, and Microsoft.

Considerations

The fund's portfolio exhibits high concentration risk, with the top three holdings accounting for over 45% of total weight.
The dividend yield of 0.34% remains low, typical for broad technology growth sectors.
Specific index methodology and sector weight data are not available, limiting transparency into its tracking approach.

About IGV and VGT

IGV (IGV)

The iShares Expanded Tech-Software Sector ETF (IGV) offers investors exposure to a broad basket of companies within the software and information technology services sectors. With a market capitalisation focus on large, mid, and small-cap software firms, it aims to reflect the performance of the expanded tech software industry. The fund holds approximately 109 positions, providing diversification within the sector while concentrating on businesses involved in developing, maintaining, and supporting software applications. Investors should note that the fund’s value can fluctuate significantly due to its focus on a single sector. While it provides an efficient way to access the tech-software theme, returns are not guaranteed, and market conditions can impact performance. The expense ratio is 0.38%, and it currently reports a very low dividend yield.

VGT (VGT)

The Vanguard Information Technology ETF (VGT) aims to provide investors with exposure to companies operating in the technology sector, encompassing both US and international firms. As a broad market fund, it seeks to track the performance of the technology industry by holding a diversified basket of over 300 stocks. With a low expense ratio of 0.09%, it offers a cost-efficient way to gain access to major tech players. Investors should note that while the fund offers potential growth tied to technological innovation, it is heavily concentrated in the technology sector. This concentration means its value can fluctuate significantly based on sector-specific trends, regulatory changes, and market sentiment. Returns are not guaranteed, and values can rise and fall, making it suitable for those who understand the risks associated with sector-focused investing.

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IGV vs VGT

Fund Snapshot