ETF Comparison

IYW vs VGT: Which Is the Better Pick in 2026?

A head-to-head comparison of iShares U.S. Technology ETF and Vanguard Information Technology ETF covering yield, cost, risk, and income potential.

Data updated August 13, 2026

Best for

IYWInvestors who want broad equity exposure.
VGTInvestors who want broad equity exposure.

Jump to the side-by-side numbers

Side-by-side snapshot

Side-by-side snapshot. Each row is one metric; each column is one fund.
Metric	IYW	VGT
Full name	iShares U.S. Technology ETF	Vanguard Information Technology ETF
Issuer	iShares	Vanguard
Last Close	$253.08 as of August 13, 2026	$121.60 as of August 13, 2026
Distribution yield	0.11%	0.46%
Distribution Safety Score™	77	93
Expense ratio	0.40%	0.10%
AUM	$25.2B	$147B
Distribution frequency	Quarterly	Quarterly
Underlying index	Dow Jones U.S. Technology Capped Index	a basket of Vanguard Information Technology ETF holdings
Objective	Tracks the Dow Jones U.S. Technology Capped Index.	Seeks to track the performance of the MSCI US Investable Market Index/Information Technology 25/50, an index made up of stocks of large, mid-size, and small U.S. companies within the information technology sector, including technology software and services, hardware and equipment, and semiconductor manufacturers.
Asset class	Equity	Equity
Inception date	05/15/2000	01/26/2004
Beta	1.47	1.47
Last dividend	$0.0718	$0.1384
Ex-dividend date	06/15/2026	06/24/2026

Bottom lineChoose IYW if you want broad equity exposure. Choose VGT if you want broad equity exposure.

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

iShares

ETFs469

Total AUM$4661B

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 IYW.

See all iShares ETFs

Vanguard

ETFs116

Total AUM$4657B

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

Vanguard is one of the largest and most established ETF issuers, known for low-cost, broadly diversified fund offerings built on passive indexing principles. Their lineup spans multiple asset classes and strategies, including core equity and bond index funds, dividend-focused portfolios, ESG-screened options, factor-based strategies, sector exposure, target-date retirement funds, and international investments across developed and emerging markets. The platform is characterized by its emphasis on accessibility and cost efficiency across a comprehensive range of fund families, serving both individual investors seeking broad market exposure and those pursuing specific income, sustainability, or thematic objectives.

See our curated list of related YouTube videos on VGT.

See all Vanguard ETFs

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Visual comparison

Key metrics

Projected income on $10K

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

Total returns

IYW has lagged VGT over the trailing twelve months, posting a 38.54% total return against 40.54%. The picture flips over 10 years, though — IYW has compounded at 24.84% a year, ahead of VGT at 24.65%. 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.
Symbol	YTD	1Y	3Y	5Y	10Y	Since Jan 2004	Volatility	Sharpe	Sortino	Max drawdown
IYW	26.69%	38.54%	33.30%	19.91%	24.84%	15.00%	24.4%	1.00	1.43	-26.5%
VGT	28.97%	40.54%	32.09%	19.53%	24.65%	15.15%	24.6%	0.96	1.36	-27.2%

Total return with all distributions reinvested on the ex-dividend date, split-adjusted, as of August 12, 2026. YTD and 1Y are cumulative; longer windows are annualized. “Since Jan 2004” measures every fund from January 30, 2004 — the youngest fund's first trading day — 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.

Quick verdict

IYW (iShares U.S. Technology ETF) and VGT (Vanguard Information Technology ETF) are both quarterly-pay dividend ETFs, but they take different approaches.

VGT offers the higher yield at 0.46% vs 0.11% for IYW. A higher yield means more current income per dollar invested, though it may come with different risk characteristics.

VGT is cheaper with an expense ratio of 0.10% compared to 0.40%.

They track different benchmarks: IYW is linked to Dow Jones U.S. Technology Capped Index while VGT tracks a basket of Vanguard Information Technology ETF holdings, which means their performance drivers differ.

VGT is the larger fund by assets ($147B), which generally means tighter spreads and better liquidity.

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Deep dive

Yield & income

On a $10,000 investment, IYW would generate roughly $0.92/month, while VGT would produce $3.83/month, at current distribution rates. Both pay quarterly distributions.

IYW yield0.11%

VGT yield0.46%

Monthly diff on $10K$2.92

Cost & efficiency

Over 10 years on $10,000, IYW would cost approximately $400 in fees vs $100 for VGT (simplified, not compounded). The $300.00 difference may be offset by yield or performance.

IYW ER0.40%

VGT ER0.10%

Strategy & risk

IYW tracks Dow Jones U.S. Technology Capped Index, while VGT holds a basket of Vanguard Information Technology ETF holdings.

IYW beta1.47

VGT beta1.47

Fund details

IYW is managed by iShares (launched 05/15/2000) with $25.2B in assets. VGT is managed by Vanguard (launched 01/26/2004) with $147B in assets.

IYW AUM$25.2B

VGT AUM$147B

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Frequently asked questions

What is the current distribution yield for IYW and VGT?

IYW currently distributes 0.11% and VGT 0.46%, based on fund data updated August 2026. Distribution yield moves with both the payout and the share price, so check the as-of date before relying on either figure.

Is IYW or VGT better for dividend income?

It depends on your goals. VGT currently offers the higher distribution yield, which means more income per dollar invested. However, a lower-yield fund may offer better total return or lower volatility. Consider your time horizon and risk tolerance.

What is the difference between IYW and VGT?

IYW (iShares U.S. Technology ETF) tracks Dow Jones U.S. Technology Capped Index, while VGT (Vanguard Information Technology ETF) holds a basket of Vanguard Information Technology ETF holdings. They are issued by iShares and Vanguard respectively.

Can I hold both IYW and VGT?

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.

Is IYW or VGT safer?

By Dividend Vision's Distribution Safety Score — a rules-based 0–100 estimate of how resilient a distribution looks, where higher is safer — VGT scores 93, IYW scores 77, so VGT's payout currently looks the more resilient of the two. No score makes an investment risk-free — treat this as a screening signal, not a guarantee.

Which has lower fees, IYW or VGT?

IYW has an expense ratio of 0.40% while VGT charges 0.10%. Lower fees mean more of your investment returns stay in your pocket over time.

How much income does $10,000 in IYW vs VGT generate?

At current rates, $10,000 in IYW would generate roughly $0.92 per month ($11.00 annually). The same in VGT would produce about $3.83 per month ($46.00 annually).

Which has performed better historically, IYW or VGT?

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IYW vs VGT — at a glance

Generated August 8, 2026.

Overview

IYW and VGT are both technology-focused equity ETFs tracking U.S. tech stocks, but they differ meaningfully in scope and cost. IYW tracks the Dow Jones U.S. Technology Capped Index—a large-cap heavy portfolio with a weight cap on individual holdings—while VGT follows the MSCI US Investable Market Information Technology Index, capturing large, mid-size, and small-cap tech names. VGT is roughly six times larger by assets and charges less than a quarter of IYW's expense ratio, making it the higher-capacity play for most investors.

How they differ

The core difference is index construction and breadth. IYW's Dow Jones index applies weight caps to individual stocks, constraining concentration risk but also limiting upside from mega-cap winners. VGT's MSCI index encompasses the full technology spectrum—software, hardware, semiconductors, and equipment—across market caps, giving it exposure to smaller and mid-sized tech names. On cost, VGT dominates: its 0.10% expense ratio is one-quarter of IYW's 0.40%, a meaningful drag over decades. VGT also offers higher dividend income at 0.46% versus IYW's 0.11%, though both yields reflect tech's historical preference for reinvestment over distributions. AUM tells a similar story—VGT's $147B in assets dwarfs IYW's $25.2B, typically translating to tighter bid-ask spreads and better liquidity.

Who each is best for

IYW: Fits investors who want exposure to large-cap technology with intentional concentration limits. The capped weighting reduces dependency on mega-cap outcomes and may appeal to those uncomfortable with the outsized influence of a few names in tech indexes.

VGT: Fits investors seeking broad tech exposure across market capitalizations with minimal cost. The larger asset base and lower expense ratio make it practical for core tech allocation and recurring contributions.

Key risks to know

Index concentration despite caps. Even with weight caps, both funds remain heavily dependent on mega-cap technology stocks. If the largest holdings underperform, both funds feel the drag, and overlap in holdings between them is likely substantial.

Tech sector cyclicality and valuation. Technology stocks, especially growth-focused software and hardware names, are sensitive to interest-rate expectations and profit-margin pressure. Periods of rising rates or recession-fear typically hit tech harder than other sectors.

Semiconductor and supply-chain risk. Both funds carry exposure to semiconductor manufacturers, a subsector prone to cyclical downturns and geopolitical disruption. Supply-chain shocks can create swift repricing.

Beta amplification. Both ETFs have betas near 1.45 and 1.44, meaning they move roughly 44% more than the broad market. In down markets, that magnifies losses relative to less-concentrated sectors.

Bottom line

VGT's lower cost, larger scale, and broader market-cap inclusion make it more efficient for buy-and-hold tech exposure. IYW appeals to investors specifically seeking the risk-management feature of capped weighting, though that advantage comes at a meaningful cost premium. 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.

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