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Dividend Vision

ETF Comparison

IGV vs XLK: One Software Book, or the Whole Tech Sector?

A head-to-head of iShares Expanded Tech-Software Sector ETF and the Technology Select Sector SPDR covering concentration, cost, and overlap.

Data updated September 18, 2026

Best for

  • IGVInvestors who want broad equity exposure.
  • XLKInvestors who want higher current income (0.48% while IGV makes no distribution).

Jump to the side-by-side numbers

Visual comparison

Key metrics

Projected income on $10K

Projections assume the current yield and share price remain constant. Actual results will vary.

Total returns

100% reinvested · ex-date convention. Period returns use this fixed assumption, independent of chart settings.

IGV has lagged XLK over the trailing twelve months, posting a -7.82% total return against 40.44%. The lead holds up over 10 years too: XLK has compounded at 24.45% a year, against 16.89% for IGV. Figures are total returns: price change plus every distribution reinvested.

Total return and risk statistics by fund. Each row is one fund; each column is one period or statistic.
SymbolYTD1Y3Y5Y10YSince Jul 2001Volatility Sharpe Sortino Max drawdown
IGV1.70%-7.82%14.20%4.67%16.89%9.90%26.9%0.330.47-36.6%
XLK31.71%40.44%31.59%20.41%24.45%12.38%25.0%0.921.32-25.7%

Total return with all distributions reinvested on the ex-dividend date (a modeling convention, not the cash-settlement date), split-adjusted, as of September 18, 2026. YTD and 1Y are cumulative; windows of one year or longer are annualized. “Since Jul 2001” measures every fund from July 17, 2001 — the start of shared available history — so all funds share one comparison window. Volatility is the annualized standard deviation of daily total returns over the trailing 3 years. Sharpe and Sortino divide the annualized return in excess of the risk-free rate by, respectively, that volatility and the downside deviation (both over the trailing 3 years) — higher is better. Max drawdown is the largest peak-to-trough total-return decline over the same window — shallower is better.

Side-by-side snapshot

Side-by-side snapshot. Each row is one metric; each column is one fund.
MetricIGVXLK
Full nameiShares Expanded Tech-Software Sector ETFState Street Technology Select Sector SPDR ETF
IssueriSharesState Street
Underlying indexS&P North American Expanded Technology Software IndexTechnology Select Sector Index
Last Close$104.35 as of September 18, 2026$189.60 as of September 18, 2026
Distribution rate—0.48%
Distribution Safety Score™ —99
Safety-Adjusted Yield —0.48%
Expense ratio0.38%0.08%
AUM$14.2B$119B
Distribution frequencyNoneQuarterly
ObjectiveSeeks to track an index of North American companies in the software industry, along with select interactive media and services firms.Track the Technology Select Sector Index, providing exposure to the information technology constituents of the S&P 500.
Asset classEquityEquity
Inception date07/10/200112/16/1998
Beta1.211.5
Last dividend—$0.228
Ex-dividend date06/15/202606/22/2026

Bottom lineChoose IGV if you want broad equity exposure. Choose XLK if you want higher current income (0.48% while IGV makes no distribution).

IGV vs XLK: software or the tech sector?

XLK already includes many software names. IGV concentrates there. Breadth versus a software sleeve is the decision.

IGVXLK
What it ownsExpanded tech-software namesTechnology Select Sector Index
Expense ratio0.38%0.08%
Distribution rate—0.48%
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Income calculator

See how much monthly income a hypothetical investment would generate in each ETF at current yields.

iShares
ETFs466
Total AUM$4551B

ETFs and AUM reflect what Dividend Vision tracks — the issuer's full lineup may be larger.

iShares is one of the largest ETF providers globally, known for offering a broad, diversified lineup of exchange-traded funds across multiple asset classes and investment strategies. The company operates 215 funds spanning 15 distinct families, including popular offerings in dividend income, covered call strategies, bonds, equities, ESG-focused investments, and factor-based approaches, with widely-held tickers like AGG (bond), ACWI (global equity), and AOA (allocation). iShares is characterized by its comprehensive fund ecosystem that serves both core portfolio holdings and specialized investment strategies, making it a prominent player for investors seeking both traditional and alternative income-generating ETF solutions.

See our curated list of related YouTube videos on IGV.

See all iShares ETFs
State Street
ETFs179
Total AUM$2092B

ETFs and AUM reflect what Dividend Vision tracks — the issuer's full lineup may be larger.

State Street Global Advisors (SSGA) is one of the largest ETF providers globally, known for its flagship SPDR suite of exchange-traded products that serve both institutional and retail investors across a broad range of asset classes. Their 88-fund lineup spans diverse strategies including sector exposure (Select Sector SPDR), income generation (Income and Select Sector SPDR Premium Income families), commodities (including the widely-held GLD gold ETF), bonds, ESG-focused investments, and thematic allocations, with popular tickers like DIA (Diamonds Trust), FEZ (Eurozone exposure), and JNK (high-yield bonds) among their most recognized funds. The issuer is characterized by its comprehensive coverage across multiple market segments and its emphasis on both traditional index-based products and specialized strategies like covered call income funds and factor-based investing.

See our curated list of related YouTube videos on XLK.

See all State Street ETFs

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Quick verdict

IGV (iShares Expanded Tech-Software Sector ETF) and XLK (State Street Technology Select Sector SPDR ETF) are both ETFs, but they take different approaches.

XLK currently shows a 0.48% distribution yield. IGV has not yet established a full distribution history, so a comparable yield figure is not available.

XLK is cheaper with an expense ratio of 0.08% compared to 0.38%.

They have different reference exposures: IGV is linked to S&P North American Expanded Technology Software Index while XLK is linked to Technology Select Sector Index, which means their performance drivers differ.

XLK is the larger fund by assets ($119B), but assets alone do not establish trading costs or liquidity.

Who should choose each?

Choose IGV

iShares Expanded Tech-Software Sector ETF

  • Want broad equity exposure.
  • Prefer lower volatility — a beta of 1.2 vs 1.5 for XLK.

Choose XLK

State Street Technology Select Sector SPDR ETF

  • Want higher current income — XLK yields 0.48% while IGV makes no distribution.
  • Want broad equity exposure.
  • Want to keep costs low — a 0.08% expense ratio vs 0.38% for IGV.

Not sure? Use the income calculator and snapshot above to weigh these trade-offs against your own goals.

Deep dive

Yield & income

On a $10,000 investment, IGV has no reported distribution yield yet, so a monthly income estimate is not available, while XLK would produce $4.00/month, at current distribution rates.

IGV yield—
XLK yield0.48%

Cost & efficiency

Over 10 years on $10,000, IGV would cost approximately $380 in fees vs $80 for XLK (simplified, not compounded). The $300.00 difference may be offset by yield or performance.

IGV ER0.38%
XLK ER0.08%

Strategy & risk

IGV tracks S&P North American Expanded Technology Software Index with a technology approach, while XLK tracks Technology Select Sector Index with a technology approach. Beta is 1.21 for IGV and 1.5 for XLK, making IGV the less volatile of the two by this measure.

IGV beta1.21
XLK beta1.5

Fund details

IGV is managed by iShares (launched 07/10/2001) with $14.2B in assets. XLK is managed by State Street (launched 12/16/1998) with $119B in assets.

IGV AUM$14.2B
XLK AUM$119B
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Frequently asked questions

What is the difference between IGV and XLK?

IGV (iShares Expanded Tech-Software Sector ETF) concentrates in software names. XLK (State Street Technology Select Sector SPDR ETF) holds the technology select sector, which already includes many of those software names plus hardware and semis. Cost is 0.38% versus 0.08%; distributions are — and 0.48% as of September 2026. Breadth versus a software sleeve is the decision.

Which of IGV or XLK pays more dividend income?

XLK currently reports a distribution yield, while IGV has not yet established a full distribution history. A direct income comparison is not yet meaningful — check back once both funds have published several consecutive distributions.

Can I hold both IGV and XLK?

Yes — nothing prevents holding both. Whether the combination actually diversifies depends on how much the underlying exposures overlap, which isn't fully measurable from the data on this page; review each security's holdings, sector, and strategy before treating them as complementary.

Which has lower fees, IGV or XLK?

IGV has an expense ratio of 0.38% while XLK charges 0.08%. Lower fees mean more of your investment returns stay in your pocket over time.

How much income does $10,000 in IGV vs XLK generate?

At current rates, IGV has not established a distribution history yet, so a monthly income estimate is not available. The same in XLK would produce about $4.00 per month ($48.00 annually).

Which has performed better historically, IGV or XLK?

IGV has lagged XLK over the trailing twelve months, posting a -7.82% total return against 40.44%. The lead holds up over 10 years too: XLK has compounded at 24.45% a year, against 16.89% for IGV. Figures are total returns: price change plus every distribution reinvested. Past performance does not guarantee future results.

More comparisons to explore

IGV vs XLK — at a glance

Generated September 19, 2026.

Overview

IGV and XLK are both technology-focused ETFs, but they operate on different scopes. IGV targets the broader North American software and interactive media ecosystem using the S&P Expanded Technology Software Index, while XLK holds the technology constituents of the S&P 500, a narrower lens anchored to large-cap U.S. companies. The key distinction: IGV includes smaller software firms and international exposure; XLK is pure S&P 500 tech.

How they differ

The most fundamental difference is index construction. XLK tracks only the 73 or so tech stocks in the S&P 500 mega-cap universe, while IGV's expanded index captures a wider software and digital-services ecosystem that may include mid-caps and smaller software companies. XLK charges 0.08% versus 0.38% for IGV—a notable gap favoring XLK—and holds $119B in assets compared to $14.2B for IGV, making XLK roughly 8× larger. Finally, XLK's beta of 1.5 indicates slightly more sensitivity to broad market swings than IGV's 1.21.

Who each is best for

IGV: Fits investors who want exposure to the full software and digital-services sector beyond the S&P 500's largest players, and who prefer tax efficiency through capital appreciation over dividend reinvestment.

XLK: Fits investors seeking core large-cap technology exposure at minimal cost, with a modest quarterly income stream and the liquidity and cost profile of a mega-fund tracking a blue-chip index.

Key risks to know

  • Sector concentration. Both ETFs concentrate in technology; IGV's software-specific focus tightens that exposure further. A broad tech downturn will hit both, but IGV's narrower subsector makes it more vulnerable to software-valuation cycles.
  • Beta divergence. XLK's 1.5 is notably higher than IGV's 1.21, meaning XLK will amplify gains and losses in a volatile market. Investors seeking downside cushioning should note the difference.
  • Index overlap risk. IGV's expanded index likely holds many of the same mega-cap stocks as XLK (Microsoft, Apple, Nvidia, etc.), so correlation may be high despite the different index design. Understanding the actual holdings overlap would clarify whether they serve different portfolio roles or are largely redundant.

Bottom line

If you prioritize broad tech exposure at the lowest possible cost and want a dividend stream, XLK's size and 0.08% fee stand out. If you want software-specific exposure and are indifferent to income, IGV's more granular index may align with that objective—though you'll pay 0.38% for it. Past performance does not predict future results.

AI-generated analysis for educational purposes only. Verify important details independently; past performance does not guarantee future results.

Learn the method

The metrics behind this comparison, explained in the Academy.

How to read a fund's stats How expense ratios eat returns Correlation between two funds

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