Yahoo Finance·2025-11-20 20:23Core Insights - Vanguard Information Technology ETF (VGT) is a broad technology ETF with 310 stocks, primarily focused on technology, and includes small allocations to communication services and financials [1] - VGT has a long track record of 21.8 years, appealing to buy-and-hold investors due to its structural stability and lack of leverage resets [1][5] - iShares US Technology ETF (IYW) has delivered slightly stronger five-year growth but with a deeper maximum drawdown, indicating more volatility during market downturns [2][4] Cost and Performance Comparison - VGT is more affordable with a 0.09% expense ratio and a 0.4% yield compared to IYW's 0.38% cost and 0.1% yield [2][5] - VGT holds over twice as many stocks as IYW, which has a more concentrated portfolio with nearly 90% in technology [5][6] - IYW has a higher 1-year return but VGT's milder historical drawdown may appeal to risk-averse investors [5][6] Investment Philosophy - VGT is designed for breadth, providing a diversified exposure across more than 300 holdings, making it suitable for long-term investors seeking stability [9][11] - IYW focuses on a narrower selection of large-cap tech stocks, capturing more upside in strong market years but with deeper drawdowns [10][11] - The distinction between the two ETFs lies in their ability to maintain a consistent tech allocation across market cycles, with VGT having a stronger claim to this role [12]