- VGT expense ratio: 0.10% (318 holdings).
- IYW expense ratio: 0.39% (141 holdings).
- VGT 10-year return: 20.2% annualized.
Vanguard Information Technology ETF (VGT) carries a 0.10% expense ratio, versus 0.39% for iShares U.S. Technology ETF (IYW), per October 2024 prospectuses. VGT holds 318 stocks to IYW's 141.
Assets under management total $70.2 billion USD for VGT and $19.8 billion USD for IYW, according to Vanguard and BlackRock disclosures as of October 2024.
Core Metrics: Expense Ratios and Holdings
- Metric: Expense Ratio · Vanguard VGT: 0.10% · iShares IYW: 0.39%
- Metric: Holdings · Vanguard VGT: 318 · iShares IYW: 141
- Metric: AUM (USD) · Vanguard VGT: $70.2B · iShares IYW: $19.8B
- Metric: Top Holding · Vanguard VGT: Apple 18.5% · iShares IYW: Microsoft 23.2%
Data from fund profiles dated October 2024. Vanguard VGT profile. iShares IYW details.
On a $100,000 USD investment, VGT fees total $100 annually, versus $390 for IYW. Morningstar fee models project this difference compounds over time.
Indices and Methodologies Compared
VGT tracks the MSCI US Investable Market Information Technology 25/50 Index. This caps individual holdings at 25% and the top five at 50% aggregate.
IYW follows the Russell 1000 Technology RIC 22.5/45 Capped Index, with 22.5% single-stock caps and 45% for the top five.
ETF.com senior analyst Dave Nadig said VGT's index includes more mid-cap tech stocks. This adds exposure to AI infrastructure firms like semiconductors and software providers. ETF.com technology ETFs.
Top Holdings in Detail
As of September 30, 2024, VGT allocates 18.5% to Apple, 16.2% to Nvidia, 13.8% to Microsoft, 4.1% to Broadcom and 3.7% to AMD, per Vanguard reports.
IYW assigns 23.2% to Microsoft, 15.9% to Nvidia, 14.7% to Apple, 4.8% to Broadcom and 3.2% to Oracle, according to BlackRock data same date.
Nvidia provides GPUs for AI training. Microsoft offers Azure cloud services. VGT includes additional names like AMD for broader coverage.
Morningstar ETF specialist Christine Benz said, "VGT's diversification reduces concentration risk in large AI stocks."
Performance Data Through September 30, 2024
VGT recorded 20.2% annualized returns over 10 years and 24.1% over five years. IYW returned 19.8% and 23.5% in those periods, per Motley Fool using Morningstar data.
One-year figures: VGT at 35.6%, IYW at 34.2%. The 0.29% fee gap contributes to differences. VGT also offers higher liquidity from scale.
Net Flows and AUM Growth
Through October 2024, VGT saw $8.5 billion USD in net inflows. IYW recorded $2.1 billion USD, per ETF Database reports.
Bloomberg ETF analyst Eric Balchunas noted institutions prefer VGT's lower costs. VGT AUM grew 15% year-over-year to $70.2 billion USD. IYW grew 12%.
Larger AUM supports tighter bid-ask spreads. VGT averages 1.2 million shares daily volume, versus IYW's 450,000, per exchange data.
AI Sector Outlook and ETF Positioning
Gartner projects global AI spending reaches $200 billion USD in 2025, a 29% rise from 2024 levels.
Semiconductors and cloud computing drive growth. Both ETFs hold key players. VGT provides exposure across more holdings. IYW concentrates on top names.
Expense ratios and diversification influence long-term results through 2030. Investors weigh costs against index methodologies for AI tech allocation.
Frequently Asked Questions
What is the VGT vs IYW expense ratio?
VGT: 0.10%. IYW: 0.39%, per fund documents as of October 2024.
Why consider VGT over IYW for AI tech?
VGT offers 318 holdings for diversification. IYW has 141. Motley Fool notes VGT's return edge.
What indices do VGT vs IYW track?
VGT: MSCI US Investable Market IT 25/50. IYW: Russell 1000 Tech RIC 22.5/45 Capped.
How do holdings impact AI exposure in VGT vs IYW?
Both feature Nvidia and Microsoft. VGT adds Broadcom, AMD for broader AI infrastructure.
