I so wish I'd invested in the Vanguard Information Technology ETF (VGT +0.32%) 20 years ago. If I'd plunked, say, $10,000 into it then, my stake would now be worth $205,000. And if I'd reinvested my dividends in additional shares of the ETF, the value would now be over $234,000. Here's how it has performed:
|
Over the Past... |
Average Annual Gain |
|---|---|
|
3 years |
29.47% |
|
5 years |
18.18% |
|
10 years |
24.24% |
|
15 years |
21.88% |
Data source: Morningstar.com, as of Sept. 2, 2026.
Image source: Getty Images.
That's really impressive, because, for context, the S&P 500 has averaged annual gains of 10% or so over long periods.
What's in the Vanguard Information Technology ETF?
A look at the ETF's holdings will give you an idea of why it has been such a great performer.
|
Stock |
Weight in ETF |
|---|---|
|
Nvidia |
17.15% |
|
Apple |
16.24% |
|
Microsoft |
10.96% |
|
Broadcom |
4.21% |
|
Micron Technology |
3.82% |
|
Advanced Micro Devices |
3.18% |
|
Cisco Systems |
1.91% |
|
Applied Materials |
1.69% |
|
Intel |
1.65% |
|
Lam Research |
1.54% |
Data source: Vanguard.com, as of July 31, 2026.
Clearly, if you want to own lots of tech stocks, this is an appealing fund. But note that while it owns around 319 stocks, its top three holdings recently made up fully 44% of its overall value. So it's quite concentrated in those three stocks.
If you're thinking of investing in this impressive ETF, do note that it's very much a growth-stock fund, and that during market downturns (which are inevitable and happen now and then), growth stocks will often fall especially hard. For example, the S&P 500 dropped around 18% in 2022, but this ETF fell by roughly 30%.
NYSEMKT: VGT
Key Data Points
You might hedge your bets by investing both in growth stocks and value stocks, or, if you fear a market crash or correction around the corner, you might keep some cash on hand for bargain-hunting, and/or you might consider investing in a solid dividend-focused ETF. Some of them are not laggards at all and can be great portfolio boosters.
