The Vanguard Information Technology ETF (NYSEMKT:VGT) offers broad exposure to the tech sector at a lower cost, while the iShares Semiconductor ETF (NASDAQ:SOXX) provides a highly concentrated play on chipmakers.
These two funds are staple choices for investors seeking exposure to the technology sector and artificial intelligence, collectively managing billions in assets under management (AUM)
While the iShares fund concentrates specifically on the American semiconductor industry, the Vanguard fund provides a broader reach across various software and hardware verticals, creating distinct risk profiles for tech-heavy portfolios. Snapshot (cost & size) The Vanguard fund is the more affordable option with an expense ratio of 0.09%, which is less than one-third of the cost associated with the iShares fund at 0.34%. Both ETFs offer an identical trailing-12-month dividend yield of 0.30% as of June 8, 2026.
While the costs differ, the iShares fund has historically delivered higher returns, albeit with a beta of 1.78 that indicates greater volatility compared to the 1.34 beta of the Vanguard fund. Performance & risk comparison What’s inside The Vanguard Information Technology ETF holds 310 stocks, primarily focusing on technology companies at 98% of the portfolio. Its largest positions include NVIDIA (NASDAQ:NVDA) at 18.60%, Apple (NASDAQ:AAPL) at 14.82%, and Microsoft (NASDAQ:MSFT) at 10.02%.