What is the difference in expense ratios between IGV and XLK, and why does it matter?

IGV has an expense ratio of 0.38%, while XLK has an expense ratio of 0.08%. This represents a difference of 0.30 percentage points. Over time, these fees reduce your investment returns. Even small differences can compound significantly over many years, meaning the fund with the higher fee might underperform the lower-fee fund if their underlying assets perform identically. Understanding fees is crucial for long-term holding.

What do 'sector ETFs' like IGV and XLK actually track?

Sector ETFs are designed to track specific segments of the stock market. XLK tracks the Technology sector broadly, which includes hardware, software, and semiconductor companies. IGV tracks the Software and IT Services sector, which is a subset of technology focused on software providers. While the specific index names are not available in the data, their holdings reflect these distinct focus areas, with XLK being broader and IGV being more specialised in software.

What does 'inception date' tell you about an ETF?

The inception date is when the fund was first created. XLK started on Dec 16, 1998, making it older than IGV, which began on Jul 10, 2001. An older fund generally has a longer performance history available for analysis. However, the date itself doesn't determine future quality. It mostly provides context about how long the fund has been operating and available to investors in the market.

How do the top holdings of IGV and XLK differ?

XLK is heavily weighted towards hardware and semiconductor giants, with NVDA at 15.53% and AAPL at 14.16% as its top two holdings. In contrast, IGV focuses on software and services, with PANW (9.02%) and PLTR (8.71%) at the top. While both funds include major tech names, IGV excludes hardware-focused companies that dominate XLK, and XLK includes non-software tech firms that are absent from IGV's top ten.

Do IGV and XLK hold the same companies?

There is some overlap, but they are quite different. According to the data, only Microsoft (MSFT) and Palantir Technologies (PLTR) appear in the top ten holdings of both funds. However, their weightings differ; for instance, MSFT is 8.35% of IGV but 10.59% of XLK. The remaining eight holdings in each fund's top ten are unique to that specific ETF, reflecting their different sector focuses.

Which fund has a higher dividend yield, and why does it vary?

XLK has a dividend yield of 0.43%, whereas IGV has a yield of 0.02%. This difference arises because the companies within each fund have different dividend policies. Technology hardware and semiconductor firms (prominent in XLK) may pay dividends, while many high-growth software firms (prominent in IGV) often reinvest profits rather than paying them out. The fund's yield is essentially the aggregate of its holdings' dividends.

How do the net assets of IGV and XLK compare?

XLK is significantly larger in terms of assets under management, with $123.2 billion compared to IGV's $14.1 billion. Larger funds often have higher liquidity and can be easier to trade without affecting the price. While both are substantial funds, the scale difference means XLK has a much broader investor base and higher daily trading volume relative to IGV.

What sectors do these ETFs represent?

Both IGV and XLK fall under the broader Technology category. XLK covers the entire Technology sector, which includes diverse sub-industries like hardware, semiconductors, and software. IGV is more specialised, targeting the Software and IT Services sub-sector. When you buy XLK, you get exposure to the full range of tech companies, while IGV concentrates specifically on software providers, ignoring hardware and semiconductor manufacturers.

What is the typical investing goal associated with each fund?

XLK is typically used by investors seeking broad exposure to the entire technology sector, capturing trends in hardware, chips, and software. IGV is usually chosen by investors who want a concentrated bet on the software and IT services industry specifically. An investor choosing IGV might believe software is outperforming hardware, while one choosing XLK wants general tech market participation.

What should beginners know before comparing these ETFs?

Beginners should note that these funds have different expense ratios, holdings, and yields. IGV has a higher fee (0.38% vs 0.08%) and a much lower yield (0.02% vs 0.43%). It also holds more software-focused stocks. Comparing these metrics helps you understand the cost and potential income difference. Always check the top holdings to ensure the fund matches your view on the market.

Is this information financial advice?

No, this content is purely educational. The data presented, including expense ratios, yields, and holdings, comes from public sources and is intended to help you understand the differences between IGV and XLK. It does not constitute a recommendation to buy, sell, or hold any investment. You should conduct your own research or consult a qualified financial advisor before making investment decisions.

IGV vs XLK

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

Compare iShares Expanded Tech-Software Sector ETF and Technology Sector SPDR. This page examines fees, holdings, dividends, and how each fund tracks its market. IGV has a 0.38% expense ratio with $14.1 billion net assets, while XLK has a 0.08% expense ratio and $123.2 billion. Yields are 0.02% for IGV and 0.43% for XLK. Educational content, not financial advice.

Fund Snapshot

Key Fund Metrics

IGV

Metric

XLK

0.38%

Expense Ratio

0.08%

0.02%

Dividend Yield

0.43%

$14.09B

Net Assets

$123.19B

109

Holdings

Jul 10, 2001

Inception Date

Dec 16, 1998

–

Index Tracked

–

Technology

Fund Category

Technology

XLK costs about $30.00 less per year for every $10,000 invested.

Shared Top Holdings

Holding	IGV	XLK
PLTRPalantir Technologies Inc.	8.71%	2.39%
MSFTMicrosoft Corporation	8.35%	10.59%

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Investment Analysis

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About IGV and XLK

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.

XLK (XLK)

Technology Sector SPDR (XLK) is an exchange‑traded fund designed to give investors broad exposure to the US technology sector by tracking a technology‑focused index. It concentrates on large‑capitalisation companies across software, hardware, semiconductors and IT services, so holdings are often dominated by a handful of industry leaders. The ETF is passively managed, typically has a low expense ratio relative to actively managed funds, and can serve as a straightforward way to gain sector exposure without selecting individual stocks. Investors should be aware of sector concentration risk, sensitivity to interest‑rate changes and valuation swings, and the cyclicality of technology spending. XLK is suitable for those seeking long‑term exposure to technology trends but not as a substitute for a diversified portfolio. This is general information only and not personal advice; values can rise and fall and past performance does not predict future returns.

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IGV vs XLK

Fund Snapshot