IYW alternatives and similar ETFs

IYW alternatives at a glance#

Each fund below can stand in for IYW, closest first. “Same kind” funds hold the same kind of stocks through a different index. “Related” funds make a different bet that often moves the same way.

Fees come from each fund company, checked on the dates shown on each fund’s page.

How IYW and its alternatives did over the same dates#

Each row measures the alternative and IYW on the days both traded, so neither gets a head start. Correlation shows how closely their daily moves matched over about the last five years. A value of 1 means they always moved together.

Prices through October 16, 2026. Figures use daily closing prices adjusted for splits, with dividends reinvested. They do not include taxes or the cost of buying and selling. Past results do not tell you what will happen next.

Each IYW alternative, compared#

FTEC: Fidelity MSCI Information Technology Index ETF#

FTEC also holds US technology companies, such as makers of chips, software and computers. It tracks the MSCI USA IMI Information Technology 25/50 Index, while IYW tracks the Russell 1000 Technology RIC 22.5/45 Capped Index.

It charges 0.084% a year, about $8.40 on $10,000, against $37 for IYW. It held 282 stocks, against 148 for IYW.

From October 2013 to October 2026, FTEC returned about 21.7% a year and IYW returned about 22.2% a year. Over about the last five years they moved almost exactly together (correlation 0.99).

Read the FTEC fund page for its returns by year and worst drop.

VGT: Vanguard Information Technology ETF#

VGT also holds US technology companies, such as makers of chips, software and computers. It tracks the MSCI US Investable Market Information Technology 25/50 Index, while IYW tracks the Russell 1000 Technology RIC 22.5/45 Capped Index.

It charges 0.09% a year, about $9 on $10,000, against $37 for IYW. It held 318 stocks, against 148 for IYW.

From January 2004 to October 2026, VGT returned about 14.8% a year and IYW returned about 14.8% a year. Over about the last five years they moved almost exactly together (correlation 0.99).

Read the VGT fund page for its returns by year and worst drop.

XLK: State Street Technology Select Sector SPDR ETF#

XLK also holds US technology companies, such as makers of chips, software and computers. It tracks the Technology Select Sector Index, while IYW tracks the Russell 1000 Technology RIC 22.5/45 Capped Index.

It charges 0.08% a year, about $8 on $10,000, against $37 for IYW. It held 75 stocks, against 148 for IYW.

From May 2000 to October 2026, XLK returned about 9.2% a year and IYW returned about 9.4% a year. Over about the last five years they moved almost exactly together (correlation 0.98).

Read the XLK fund page for its returns by year and worst drop.

QQQM: Invesco NASDAQ 100 ETF#

QQQM is a looser match. It holds the 100 biggest companies on the Nasdaq outside finance, many of them in technology, while IYW holds US technology companies, such as makers of chips, software and computers.

It charges 0.15% a year, about $15 on $10,000, against $37 for IYW.

From October 2020 to October 2026, QQQM returned about 16.5% a year and IYW returned about 21.4% a year. Over about the last five years they moved almost exactly together (correlation 0.98).

Read the QQQM fund page for its returns by year and worst drop.

QQQ: Invesco QQQ Trust, Series 1#

QQQ is a looser match. It holds the 100 biggest companies on the Nasdaq outside finance, many of them in technology, while IYW holds US technology companies, such as makers of chips, software and computers.

It charges 0.18% a year, about $18 on $10,000, against $37 for IYW.

From May 2000 to October 2026, QQQ returned about 9.2% a year and IYW returned about 9.4% a year. Over about the last five years they moved almost exactly together (correlation 0.98).

Read the QQQ fund page for its returns by year and worst drop.

ONEQ: Fidelity Nasdaq Composite Index ETF#

ONEQ is a looser match. It holds the 100 biggest companies on the Nasdaq outside finance, many of them in technology, while IYW holds US technology companies, such as makers of chips, software and computers.

It charges 0.21% a year, about $21 on $10,000, against $37 for IYW. It held 1,032 stocks, against 148 for IYW.

From October 2003 to October 2026, ONEQ returned about 13.2% a year and IYW returned about 15.3% a year. Over about the last five years they moved almost exactly together (correlation 0.98).

Read the ONEQ fund page for its returns by year and worst drop.

QQEW: First Trust Nasdaq-100 Select Equal Weight ETF#

QQEW is a looser match. It holds the 100 biggest companies on the Nasdaq outside finance, many of them in technology, while IYW holds US technology companies, such as makers of chips, software and computers.

It charges 0.55% a year, about $55 on $10,000, against $37 for IYW. It held 50 stocks, against 148 for IYW.

From May 2006 to October 2026, QQEW returned about 11.2% a year and IYW returned about 16.4% a year. Over about the last five years they moved together on most days (correlation 0.91).

Read the QQEW fund page for its returns by year and worst drop.

SOXX: iShares Semiconductor ETF#

SOXX is a looser match. It holds companies that design and make computer chips, while IYW holds US technology companies, such as makers of chips, software and computers.

It charges 0.33% a year, about $33 on $10,000, against $37 for IYW. It held 30 stocks, against 148 for IYW.

From July 2001 to October 2026, SOXX returned about 13.6% a year and IYW returned about 12.6% a year. Over about the last five years they moved together on most days (correlation 0.89).

Read the SOXX fund page for its returns by year and worst drop.

IYW versions from other fund companies#

Some people keep all their funds with one company. Here is the closest fund to IYW from each other company on this page:

• Fidelity: FTEC, Fidelity MSCI Information Technology Index ETF (same kind of fund, 0.084% a year)
• Vanguard: VGT, Vanguard Information Technology ETF (same kind of fund, 0.09% a year)
• SPDR (State Street): XLK, State Street Technology Select Sector SPDR ETF (same kind of fund, 0.08% a year)
• Invesco: QQQM, Invesco NASDAQ 100 ETF (related fund, 0.15% a year)
• First Trust: QQEW, First Trust Nasdaq-100 Select Equal Weight ETF (related fund, 0.55% a year)

Most brokers let you buy any ETF, whoever runs it. Mutual fund versions, such as a fund company’s index mutual fund, are not listed here.

How to choose between IYW and its alternatives#

• What it tracks. A fund on the same index holds the same stocks. A different index can mean different weights, more or fewer holdings, or a different mix.
• The fee. The difference is often small. On $10,000, IYW costs about $37 a year. XLK costs about $8.
• History. An older fund has been through more bad markets, so you can see how far it fell.
• What you already own. Two funds that move together add little variety. A fund with a low correlation behaves more on its own.

Swapping IYW to harvest a tax loss#

Some investors sell a fund at a loss to lower their taxes, then buy a similar fund so they stay invested. This is called tax-loss harvesting.

The IRS wash sale rule blocks the loss if you buy a “substantially identical” security within 30 days before or after the sale. The IRS has not said exactly when two funds count. Funds on the same index are more likely to. Funds on a different index, such as FTEC, VGT or XLK, are less likely to.

Ask a tax professional before you rely on this. Read the IRS rules in Publication 550.

Test IYW and its alternatives in a backtest#

Tactfolio is a platform where you build rules-based investing strategies, backtest them on decades of real prices, share them, and run them automatically in your own Alpaca account. Open the builder, add IYW and FTEC, and see how each would have done on the same dates, or how a mix of both would have done.

The details#

Alternatives are picked from facts, not from returns. First come funds that track the same index as IYW. Then come funds that hold the same kind of stocks through another index. Last come funds from a close category that make a different bet. Leveraged funds are only listed as alternatives to other leveraged funds.

Within each group, the funds whose daily returns moved most like IYW over about the last five years come first. Returns and worst drops use Tactfolio’s stored daily prices, adjusted for splits, with dividends reinvested. Each alternative is measured with IYW only on days both traded. Read what a backtest simulates for more on these measures.