IGV vs VGT: A Software Slice vs the Whole Tech Sector
These two funds get compared because both say "tech," but they answer different questions. VGT owns the entire US technology sector for 0.10%, with Apple, Nvidia, and Microsoft as its engine. IGV carves out just the software industry for 0.41%: no Apple, no Nvidia, no chipmakers, about 100 names led by Microsoft, Oracle, and Salesforce.
VGT (Vanguard Information Technology ETF) tracks the full US tech sector: about 315 stocks at 0.10%, with Apple, Nvidia, and Microsoft together making up a large share of the fund. IGV (iShares Expanded Tech-Software ETF) holds roughly 100 software companies at 0.41%, and its exclusions define it: no Apple, no Nvidia, no semiconductor names at all. Software is the part of tech with the fattest gross margins and often the steepest valuations, so IGV concentrates both the upside and the risk of that profile. Most of IGV's major holdings already sit inside VGT at smaller weights, which means VGT holders already own the software industry in proportion to its market size. The 31 basis point fee gap is $310 a year on $100,000. IGV's case rests entirely on wanting software specifically, and more of it than the sector weighting gives you.
Whether the lower-cost fund suits your situation depends on your existing holdings, account type, tax situation, and how you use each fund. This is a cost comparison, not a personalized recommendation.
📋 IGV vs VGT — Key Facts Side by Side
| Metric | IGV | VGT |
|---|---|---|
| Fund Name | iShares Expanded Tech-Software Sector ETF | Vanguard Information Technology Index Fund ETF Shares |
| Issuer | iShares | Vanguard |
| Tracks Index | S&P North American Expanded Technology Software Index | MSCI US IMI Information Technology 25/50 |
| Expense Ratio | 0.41% | 0.10% ✓ |
| Cost per $10K/yr | $41.00 | $10.00 |
| AUM | $13.5B | $169.4B |
| Holdings | 100 | 315 |
| Inception | 2001 | 2004 |
| 1-Year Return | -14.67% | +38.69% |
| 3-Year Return | +11.67% | +29.41% |
| 5-Year Return | +3.48% | +18.86% |
| Dividend Yield | 0.02% | 0.36% |
| Holdings Overlap | See holdings overlap → | |
| Avg Bid-Ask Spread | 0.02% | 0.02% |
Expense ratio, AUM, and returns updated Jul 10, 2026 from ETF BFF database. Returns are annualised. Not investment advice.
📊 IGV vs VGT — Annualised Returns
Annualised returns (trailing, price-based). Past performance does not guarantee future results.
🎯 Should You Buy IGV or VGT?
- You already use iShares and prefer staying within their fund family
- You want the lowest fees — saves ~$31/yr per $10K vs IGV
- You want broader diversification (315 holdings vs 100)
💰 What the Fee Difference Actually Costs
Adjust the numbers for your situation. This models each fund's expense ratio compounding against your balance over time.
Assumes a constant annual return reinvested, with each fund's expense ratio deducted yearly. Illustrative only; actual returns vary. Past performance does not guarantee future results.
⚙️ Want the Full Interactive Comparison?
Side-by-side holdings overlap, sector breakdown, and live performance tabs, all in one place.
Run Full IGV vs VGT Comparison → Free · No signup · Instant resultsGet smarter about ETFs — one concept a week, free forever
The ETF BFF newsletter breaks down one ETF concept per week — clear, jargon-free, and actually useful.
Free to learn forever · No spam · Unsubscribe anytime
❓ IGV vs VGT — Frequently Asked Questions
New to ETF investing? See answers to the most common ETF questions →