VGT vs IYW: Broad vs Concentrated Tech ETFs as BTC Hits $76K

VGT vs IYW comparison gained traction as Bitcoin hit $76,292 on October 10, 2024. Motley Fool analysts evaluated the ETFs for AI exposure. CNN's Fear & Greed Index registered 29.

Bitcoin fell 1.0% to $76,292 with a $1,527.4 billion market cap, per CoinGecko data at 14:00 UTC on October 10. Ethereum dropped 2.1% to $2,265.70. VGT and IYW offer equity alternatives to crypto volatility in AI infrastructure.

VGT Tracks MSCI US Investable Market IT Index

Vanguard VGT follows the MSCI US Investable Market Information Technology 25/50 Index, holding 318 stocks as of September 30, 2024, per Vanguard's quarterly fact sheet. Nvidia commands 18.4% weight, Microsoft 15.2%, and Apple 13.1%.

The fund spans semiconductors, software, cloud computing, and edge AI devices. Expense ratio stands at 0.10%. Average daily volume hit 1.52 million shares in Q3 2024, with assets under management at $70.2 billion, Vanguard reported.

Year-to-date through October 10, VGT returned 22.4%, per Morningstar direct data. One-year return reached 45.7%. Beta versus S&P 500 measures 1.12, indicating moderate volatility.

IYW Follows Russell 1000 Technology Capped Index

iShares IYW tracks the Russell 1000 Technology RIC 22.5/45 Capped Index with 110 holdings as of September 30, 2024, according to BlackRock's holdings report. Nvidia weighs 15.3%, Broadcom 8.7%, and Microsoft 8.2%.

Semiconductors claim 41.2% allocation. Expense ratio equals 0.40%. Daily volume averaged 512,000 shares, with AUM at $19.1 billion in Q3, BlackRock stated.

YTD return stood at 20.3% through October 10, per Morningstar. One-year gain hit 42.1%. Beta registers 1.18, reflecting higher concentration risk.

2024 Performance: VGT Ahead of IYW

VGT outperformed IYW by 2.1 percentage points YTD as of October 10, 2024, Morningstar analyst Susan Dziubinski noted in her October 9 sector review. VGT's broader base cushioned dips in mega-caps.

Over five years, VGT annualized 20.8% versus IYW's 20.2%, per Morningstar. In 2023, IYW returned 52.7% against VGT's 46.8%.

• Metric: YTD Return · VGT: 22.4% · IYW: 20.3%
• Metric: 1-Year · VGT: 45.7% · IYW: 42.1%
• Metric: Expense Ratio · VGT: 0.10% · IYW: 0.40%
• Metric: AUM · VGT: $70.2B · IYW: $19.1B
• Metric: Holdings · VGT: 318 · IYW: 110

Data from Morningstar, October 10, 2024.

Shared Holdings Focus on AI Leaders

Both ETFs feature Nvidia, Microsoft, Broadcom, Apple, and Oracle in top 10, per issuer fact sheets dated September 30. VGT includes mid-caps like Palantir (0.8%) and Super Micro Computer (0.6%). IYW caps initial weights at 22.5%, rising to 45% post-rebalance.

Semiconductors dominate: 28% in VGT, 41% in IYW. Software allocates 22% across both. AI data center growth underpins overlap, ETF.com analyst Dave Nadig wrote in his October 8 column.

CNN Fear & Greed Index Reaches 29

CNN's Fear & Greed Index fell to 29 on October 10, driven by crypto selloff and stock volatility, per CNN Business data. VGT declined 0.8% on October 10 versus IYW's 1.2% drop. Tech inflows hit $5.2 billion in Q3, ETF.com reported.

VGT Lower Fees and Higher Liquidity

VGT's 0.10% fee undercuts IYW's 0.40%, saving $30 annually per $10,000 invested, per issuer prospectuses. VGT spreads averaged 0.01% versus IYW's 0.03% in September, per Bloomberg data.

Institutional adoption boosts VGT: $4.8 billion net inflows YTD versus IYW's $1.2 billion, Morningstar flows tracker showed.

Outlook Hinges on Nvidia Earnings, Fed Signals

Nvidia reports November 20, 2024. Analysts project 85% revenue growth to $32.5 billion, Goldman Sachs' Toshiya Hari forecasted October 7. AI chip demand could propel both ETFs 5-10% post-earnings.

Federal Reserve minutes on October 9 hinted at September 2025 cuts, lifting tech valuations. Motley Fool positions VGT for balanced exposure and IYW for aggressive plays through 2026. VGT vs IYW choices depend on risk tolerance.