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 July 15, 2026

iShares

ETFs481

Total AUM$4450B

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

ETFs115

Total AUM$4484B

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

Vanguard is known for offering low-cost, passively managed ETFs that emphasize broad market exposure and long-term investing. The company operates 175 ETFs across diverse fund families including Index, Bond, Equity, Dividend, Income, International, Factor, and ESG strategies, serving investors with various goals from core portfolio building to specialized income generation. Notable for its scale and popular tickers like VB (total U.S. small-cap), BND (total bond market), and VBIAX (international bonds), Vanguard focuses on providing comprehensive, index-based investment solutions with an emphasis on cost efficiency and accessibility.

See our curated list of related YouTube videos on VGT.

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Side-by-side snapshot

	IYW	VGT
Full name	iShares U.S. Technology ETF	Vanguard Information Technology ETF
Issuer	iShares	Vanguard
Last Close	$248.19 as of July 15, 2026	$117.11 as of July 15, 2026
Distribution yield	0.12%	0.47%
Distribution Safety Score	67	89
Expense ratio	0.40%	0.10%
AUM	$24.3B	$143B
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	1.45	1.44
Last dividend	$0.0718	$0.1384
Ex-dividend date	06/15/2026	06/24/2026

Bottom lineIYW and VGT are nearly interchangeable — both track the Dow Jones Industrial Average with very similar cost and risk. The clearest tie-breaker is cost: VGT is cheaper at 0.10% vs 0.40%.

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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 outpaced VGT over the trailing twelve months, posting a 41.80% total return against 40.37%. The lead holds up over 10 years too: IYW has compounded at 25.44% a year, against 24.90% for VGT. Figures are total returns: price change plus every distribution reinvested.

Symbol	YTD	1Y	3Y	5Y	10Y	Since Jan 2004	Volatility	Sharpe	Sortino	Max drawdown
IYW	24.25%	41.80%	31.00%	19.91%	25.44%	14.96%	24.2%	0.94	1.33	-26.5%
VGT	24.21%	40.37%	28.55%	18.87%	24.90%	15.01%	24.3%	0.86	1.21	-27.2%

Total return with all distributions reinvested on the ex-dividend date, split-adjusted, as of July 14, 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 0.47% vs 0.12% 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 ($143B), which generally means tighter spreads and better liquidity.

Deep dive

Yield & income

On a $10,000 investment, IYW would generate roughly $1.00/month, while VGT would produce $3.92/month, at current distribution rates. Both pay quarterly distributions.

IYW yield0.12%

VGT yield0.47%

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. Beta is 1.45 for IYW and 1.44 for VGT, indicating VGT is less volatile relative to the market.

IYW beta1.45

VGT beta1.44

Fund details

IYW is managed by iShares (launched 05/15/2000) with $24.3B in assets. VGT is managed by Vanguard (launched 01/26/2004) with $143B in assets.

IYW AUM$24.3B

VGT AUM$143B

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Frequently asked questions

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.

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 $1.00 per month ($12.00 annually). The same in VGT would produce about $3.92 per month ($47.00 annually).

Which has performed better historically, IYW or VGT?

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