The Vanguard Information Technology ETF (VGT) charges a lower expense ratio and has a higher yield than the iShares US Technology ETF (IYW). While IYW has shown stronger five-year growth, VGT has more companies in its portfolio. Both focus on mega-cap tech stocks but differ in cost, diversification, and performance.

VGT and IYW are passively managed U.S. technology sector ETFs. VGT has lower fees, higher yield, and a larger number of holdings than IYW. Both have similar returns over one and five years, with IYW slightly outperforming. Both have similar volatility levels with comparable betas and max drawdowns.

VGT holds 322 stocks, including mega-caps like Nvidia and Apple, offering diversified exposure to the tech industry. IYW, with 141 stocks, has a similar sector allocation but slightly different top holdings. Both funds avoid leverage and currency hedging, focusing on technology companies for long-term growth potential.

VGT charges a much lower expense ratio and offers a higher yield than IYW, making it appealing for cost-conscious investors seeking passive dividend income. VGT’s broader diversification and lower fees can save investors money over time. However, IYW’s targeted approach may lead to slightly higher returns in the future.

For investors seeking greater diversification and exposure to a broader range of companies, VGT has an edge over IYW. VGT’s lower fees and higher yield can help save money long-term, while IYW’s more targeted approach may lead to slightly better returns in the future. Both funds offer exposure to the tech industry with similar levels of volatility.

Read more at Yahoo Finance: How VGT and IYW Compare on Performance, Fees, and Diversification