How do the expense ratios of IGV and VOO differ?

The expense ratio represents the annual fee an investor pays to the fund manager. IGV has an expense ratio of 0.38%, while VOO charges 0.03%. The difference of 0.35 percentage points indicates that VOO operates with significantly lower management costs. This lower fee structure is common for broad-market index funds, whereas sector-specific ETFs often incur higher costs due to more focused portfolio management and potentially higher trading activity within a niche segment.

What impact do expense ratio differences have on long-term returns?

Even small differences in expense ratios can compound significantly over time. For example, a 0.35 percentage point higher cost in IGV compared to VOO means less money grows within the investment annually. Over ten or twenty years, this can result in a noticeable reduction in final portfolio value, assuming the same gross returns from the underlying assets. Investors should consider how these ongoing costs affect their net performance relative to their investment horizon.

How do IGV and VOO compare in terms of net assets?

Net assets refer to the total value of the investments held by the fund. As of the provided data, IGV holds $14.1 billion in net assets, reflecting its status as a well-established sector ETF. In contrast, VOO manages approximately $1.08 trillion, highlighting its massive scale as a broad-market fund. While both funds are large enough for most retail investors to trade efficiently, VOO's substantially larger asset base often contributes to tighter bid-ask spreads and high liquidity.

How do the top holdings of IGV and VOO overlap?

Comparing the top ten holdings reveals limited direct overlap between the two funds. Both include Microsoft Corporation, which is listed as a top holding for IGV and VOO. However, the remaining positions differ substantially. IGV features major software companies like PANW and PLTR, while VOO's top holdings include NVDA and AAPL. This distinction underscores the difference between a concentrated software sector strategy and a broad large-cap market approach.

What is the difference in dividend yield between these two ETFs?

Dividend yield measures how much a fund pays out in distributions relative to its share price. Based on the fund data, IGV has a dividend yield of 0.02%, indicating minimal income generation. Conversely, VOO has a yield of 1.03%, providing more substantial regular payouts. This difference is partly due to the underlying companies in each portfolio, as established large-cap firms often pay dividends, while many software firms reinvest capital for growth.

How do inception dates affect the track record of IGV and VOO?

Inception date marks when the fund first started trading. IGV launched on July 10, 2001, giving it a significantly longer historical track record. VOO started on September 7, 2010. Although VOO is a relatively newer entity, its long-term performance reflects the broader S&P 500 index. When evaluating track records, investors often consider the number of years of operation and the different market cycles each fund has experienced since its launch.

What does the sector concentration look like in IGV?

The iShares Expanded Tech-Software Sector ETF is heavily concentrated in software companies, with its top five holdings being PANW, PLTR, MSFT, CRWD, and ORCL. As of the provided data, sector weights are marked as not available, but the high percentage allocation to software firms is evident from the top holdings list. This creates a portfolio that may experience greater volatility compared to diversified broad-market funds.

Does VOO offer greater diversification than IGV?

VOO is structured to hold a broad range of large-cap stocks, with top holdings including NVDA, AAPL, MSFT, AMZN, and GOOGL. While its detailed sector weights are listed as not available, the diversity of these top holdings suggests a wider sector exposure than IGV's tech-heavy focus. Generally, a diversified fund aims to mitigate risk by spreading investments across multiple industries, reducing reliance on any single sector's performance.

What are the risks of sector-specific investing in ETFs like IGV?

ETFs focused on specific sectors, such as IGV with its emphasis on software companies, expose investors to concentration risk. Since its performance is closely linked to one industry, any downturn in the software sector affects the fund more directly than it would a broad market index. Investors must consider that high-growth potential often accompanies higher volatility, and this single-industry focus requires careful risk management.

How do IGV and VOO differ in their primary investment characteristics?

IGV is characterised by high growth but very little income, evidenced by its low dividend yield of 0.02%. VOO provides a steady income stream with its 1.03% yield and is a large, well-established fund with $1.08 trillion in net assets, making it a robust investment vehicle.

What data is unavailable for comparing these two ETFs?

While expense ratios and yields are provided, some key metrics are marked as 'not available' for both IGV and VOO. Specifically, the index tracked and sector weights are absent. Without sector weights, it is difficult to quantify the exact industry exposure differences. Additionally, the lack of specified index names means investors cannot directly compare their tracking methodologies or underlying construction mechanics.

What should beginners consider when choosing between these funds?

This comparison is for educational purposes and does not constitute financial advice. Fund selection depends on individual risk tolerance and financial goals. Sector ETFs like IGV are more volatile, while broad funds like VOO offer income and diversification. Investors should consult a qualified financial professional.

IGV vs VOO

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

Explore iShares Expanded Tech-Software Sector ETF (IGV) and S&P 500 Vanguard ETF (VOO). This comparison outlines expense ratios, top holdings, dividend yields, and how each fund tracks its respective market focus. IGV offers 0.38% fees with software exposure, while VOO provides 0.03% fees with broad large-cap access. Educational content, not financial advice.

Fund Snapshot

Key Fund Metrics

IGV

Metric

VOO

0.38%

Expense Ratio

0.03%

0.02%

Dividend Yield

1.03%

$14.09B

Net Assets

$1.08T

109

Holdings

516

Jul 10, 2001

Inception Date

Sep 7, 2010

–

Index Tracked

–

Technology

Fund Category

Large Blend

VOO costs about $35.00 less per year for every $10,000 invested.

Shared Top Holdings

Holding	IGV	VOO
MSFTMicrosoft Corporation	8.35%	5.70%

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Investment Analysis

IGV

Pros

IGV has accumulated $14.1 billion in net assets since its July 2001 inception, ensuring a robust and established investment vehicle.
Its portfolio includes significant holdings in high growth software leaders like Palo Alto Networks and Palantir, which together comprise 17.73% of the fund's assets.
As a concentrated equity fund, IGV provides direct access to the technology software sector without diluting returns through unrelated market segments.

Considerations

The annual expense ratio of 0.38% is relatively high for a sector-specific ETF, potentially reducing net returns for long-term investors.
With a dividend yield of 0.02%, this fund offers very little income, making it unsuitable for investors seeking regular cash payouts.
Holding ten major positions in top stocks results in a lack of diversification, meaning performance relies heavily on the software industry.

VOO

Pros

VOO's expense ratio is an extremely low 0.03%, allowing the vast majority of the fund's gross returns to reach the investor.
The ETF holds $1.08 trillion in net assets, indicating massive scale and likely tight bid-ask spreads for trading efficiency.
Its dividend yield of 1.03% provides a steady income stream compared to non-yielding or speculative technology-only instruments.

Considerations

Inception in September 2010 means the fund has a shorter historical track record than some of its longer-established index-tracking competitors.
The first ten stock holdings include several mega-cap tech stocks, which results in an elevated concentration in the technology sector.
Index methodology details are marked as not available, leaving potential gaps for investors requiring precise knowledge of fund construction mechanics.

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About IGV and VOO

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.

VOO (VOO)

VOO is Vanguard’s exchange-traded fund designed to track the S&P 500 Index, offering broad exposure to about 500 of the largest publicly traded US companies. It aims to replicate the index’s performance minus fees by holding the same stocks in similar proportions, making it a straightforward, passive way to access large‑cap US equities. Investors commonly use VOO as a core holding for long‑term growth or as a simple building block in a diversified portfolio. It typically offers high liquidity and regular dividend distributions from underlying companies. As with any equity investment, VOO’s value can rise or fall with the market, and past performance is not a guide to future returns. Fees, trading costs and potential tracking error reduce returns slightly. This information is general and educational only and not personalised financial advice — consider your own circumstances or speak to a qualified adviser before investing.

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IGV vs VOO

Fund Snapshot