What is an ETF expense ratio and how do these two funds compare?

The expense ratio is the annual fee charged by the fund. In this comparison, Fund A (IYW) has an expense ratio of 0.37%, while Fund B (VGT) has a significantly lower expense ratio of 0.09%. This 0.28% difference in percentage points means that for every $10,000 invested, Fund A costs $37 annually, whereas Fund B costs $9. Lower fees can enhance long-term net returns, but investors should weigh this against other fund features.

Why does the index tracked matter for ETF investors?

The index tracked determines the specific securities the ETF buys to replicate performance. For both IYW and VGT, the specific index tracked is listed as 'not available' in the current data. Without this information, investors cannot independently verify the exact methodology or potential tracking differences. However, both funds are categorised as Technology ETFs, implying they aim to reflect the performance of the US technology sector, albeit potentially through different indices.

How do the top holdings of IYW and VGT overlap?

There is substantial overlap between the top ten holdings of both funds. Seven companies appear in both lists: NVDA, AAPL, MSFT, AVGO, AMD, MU, and INTC. The weights are also similar for these shared stocks. For instance, NVDA is 17.08% of IYW and 17.74% of VGT. The main difference lies in the remaining holdings, where IYW includes META, GOOGL, and GOOG, while VGT holds CSCO, PLTR, and LRCX.

What is the difference in dividend yield between the two funds?

Fund B (VGT) offers a higher dividend yield of 0.34%, compared to Fund A's (IYW) yield of 0.09%. This 0.25% percentage point difference reflects how each fund manages distributions from its underlying holdings. While technology companies generally pay modest dividends, VGT's yield is more than three times that of IYW based on the provided data. Investors seeking regular income might notice this discrepancy, though yields can fluctuate.

How do the asset bases of IYW and VGT compare?

Fund B (VGT) has a significantly larger net asset base of $150.2 billion compared to Fund A's (IYW) $25.7 billion. A larger asset base can lead to greater economies of scale, potentially contributing to VGT's lower expense ratio. Both funds possess sufficient liquidity for efficient trading, but VGT's substantial size is often associated with high institutional and retail demand. This scale difference is a key structural distinction between the two options.

What are the concentration risks associated with these funds?

Both funds exhibit concentration in their largest holdings. IYW's top five holdings constitute 51.7% of its assets, while VGT's top three holdings represent nearly 45% of its total. This concentration means performance is heavily influenced by a few large-cap technology firms. If these specific companies underperform, the entire ETF may suffer, regardless of broader sector trends. Investors should be aware that sector funds differ from broad-market ETFs in this regard.

Which type of investing goal is each fund typically associated with?

VGT, with its lower expense ratio and larger asset base, is often associated with cost-conscious, long-term core sector allocation. IYW, despite higher fees, offers exposure to a broad US technology universe including major communication services names like META, which VGT lacks in its top ten. Neither is recommended, but IYW might appeal to those prioritising a specific holding mix, while VGT attracts those prioritising efficiency and scale.

Do these ETFs have a long operating history?

Fund A (IYW) has a longer operating history, with an inception date of 15 May 2000. Fund B (VGT) was launched later on 26 January 2004. IYW's track record of over two decades demonstrates resilience across multiple market cycles. However, VGT's longer existence relative to many newer ETFs and its massive current asset base also provide stability. The age difference is roughly four years, which is less significant than cost or holdings structure.

Can I find detailed sector weights for these funds?

Based on the provided data, specific sector weights for both IYW and VGT are listed as 'not available'. While both are categorised as Technology ETFs, the precise breakdown of sub-sectors (such as hardware, software, or semiconductors) is not disclosed in this snapshot. Investors needing detailed sub-sector analysis to assess portfolio fit would need to consult official fund documents or provider websites directly, as this comparison tool lacks that granular data.

What should I know about tracking differences when indices are unknown?

When the 'Index tracked' field is 'not available', as it is for both funds here, assessing exact tracking differences is difficult. Typically, funds tracking the same index should perform similarly, while those tracking different indices may diverge. With both funds targeting the US technology sector but having different holdings in the top ten (e.g., META in IYW vs. PLTR in VGT), their performance will likely reflect these constituent variations. Verification of methodology is impossible without index details.

IYW vs VGT

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

Compare iShares U.S. Technology ETF (IYW) and Vanguard Information Technology ETF (VGT). This page examines expense ratios, holdings, dividend yields and how each fund tracks its market. Both offer exposure to major technology companies, with differing costs and asset levels. Educational content, not financial advice.

Fund Snapshot

Key Fund Metrics

IYW

Metric

VGT

0.37%

Expense Ratio

0.09%

Dividend Yield

0.34%

$25.66B

Net Assets

$150.23B

154

Holdings

323

May 15, 2000

Inception Date

Jan 26, 2004

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Index Tracked

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Technology

Fund Category

Technology

VGT costs about $28.00 less per year for every $10,000 invested.

Shared Top Holdings

Holding	IYW	VGT
NVDANVIDIA Corporation	17.08%	17.74%
AAPLApple Inc.	16.01%	15.80%
MSFTMicrosoft Corporation	12.10%	11.52%
AVGOBroadcom Inc.	3.27%	4.52%
AMDAdvanced Micro Devices, Inc.	3.03%	2.95%
MUMicron Technology, Inc.	2.97%	4.18%
INTCIntel Corporation	2.44%	1.54%

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Investment Analysis

IYW

Pros

The fund's $25.7 billion net assets ensure significant liquidity for efficient trading and institutional accessibility.
The substantial asset base and broad U.S. technology exposure facilitate effective diversification within the sector.
A long operating history since 2000 demonstrates resilience and adherence to its investment mandate.

Considerations

The 0.37% expense ratio is notably higher than the 0.09% charged by comparable Vanguard technology funds.
The 0.09% dividend yield is significantly lower than the 0.34% offered by its primary competitor.
Top five holdings constitute 51.7% of assets, indicating a concentrated risk in a few large-cap firms.

VGT

Pros

The 0.09% expense ratio is exceptionally low for a large technology ETF, minimising investment costs.
A massive $150.2 billion asset base guarantees high liquidity and stable operational economies of scale.
The 0.34% dividend yield is comparatively attractive relative to the yield of similar tech funds.

Considerations

The portfolio exhibits extreme concentration, with the top three holdings representing nearly 45% of total assets.
Index methodology details are not available from the data, preventing independent verification of tracking approach.
Performance remains heavily reliant on the sector, which may underperform the broader market.

About IYW and VGT

IYW (IYW)

The iShares U.S. Technology ETF (IYW) offers investors exposure to the dynamic world of American technology companies. This fund tracks an index composed of U.S. stocks within the technology sector, including prominent areas like semiconductors, data processing, storage solutions, computer equipment, and software and services. With 154 holdings, it provides diversified access to the sector's key players. Launched in May 2000, the fund holds substantial net assets of approximately USD 25.66 billion, reflecting its established presence in the market. Investors should note an annual expense ratio of 0.37%, which covers management fees. The fund currently offers a modest dividend yield of 0.09%, meaning it is primarily focused on capital growth rather than income generation. As with any investment in a specific sector, performance can be volatile, as technology stocks may rise or fall based on innovation cycles, regulatory changes, and broader market conditions.

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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IYW vs VGT

Fund Snapshot