IYW vs. VGT: Is Alphabet Worth Paying Four Times More in Fees?

The article compares iShares U.S. Technology ETF (IYW) and Vanguard Information Technology ETF (VGT), highlighting material differences in fees, sector definition, and holdings that affect long-term returns. VGT charges a far lower expense ratio (0.09% vs. IYW’s 0.38%), has much larger AUM ($144.2B vs. $23.7B), and a higher trailing dividend yield (2.1% vs. 0.1%), while IYW includes communication-services names such as Alphabet that VGT excludes. Both funds show strong recent performance (1-yr returns ~50%), but VGT’s semiconductor tilt and broader diversification make it the cost-conscious choice for long-term, AI-driven growth exposure. IYW may appeal to investors who specifically want Alphabet exposure and accept higher fees. The piece is a comparative market commentary with a slight tilt in favor of VGT for long-term investors.