This Unstoppable Vanguard ETF Would Have Nearly Tripled Your Money in the Last 5 Years. Could It Set You Up for Life?
Key Points
Investing in a tech ETF can help you earn above-average returns over time.
With enough consistency, this fund could result in a portfolio worth $1 million or more.
- 10 stocks we like better than Vanguard Information Technology ETF ›
The right investment can transform your finances, and exchange-traded funds (ETFs) are a low-effort way to build long-term wealth.
The Vanguard Information Technology ETF (NYSEMKT: VGT) has been skyrocketing, earning total returns of more than 150% in the last five years alone. This means that if you'd invested $10,000 back then, you'd have over $25,000 by today.
Will AI create the world's first trillionaire? Our team just released a report on the one little-known company, called an "Indispensable Monopoly" providing the critical technology Nvidia and Intel both need. Continue »
Past performance doesn't predict future returns, but there's reason to believe this ETF could still have plenty of room for growth. Here's why.
Image source: Getty Images.
A powerhouse investment
The Vanguard Information Technology ETF holds 316 stocks from all areas of the technology industry, but its largest focus is semiconductor stocks -- with around 38% of the portfolio dedicated to this subsector.
Semiconductor companies have been lucrative lately. Perhaps most notable is Micron Technology, which has earned total returns of nearly 700% over the last 12 months. This ETF provides exposure to fast-growing companies like Micron, along with established giants like Nvidia, Apple, and Microsoft.
One advantage of the Vanguard Information Technology ETF, in particular, is its built-in risk protection. With over 300 stocks spanning the broader tech sector, that extra diversification can help cushion the blow if semiconductors falter in the future.
This ETF has also become increasingly lucrative in more recent years. It's earned an average annual return of around 15% since its inception in 2004, around 25% over the last 10 years, and 33% over the last three years.
To play it safe, let's assume this ETF earns an average annual return of 15% going forward. At that rate, if you're investing $200 per month, here's approximately how your contributions could add up over time:
| Number of Years | Total Portfolio Value: 15% Avg. Annual Return |
|---|---|
| 10 | $49,000 |
| 15 | $114,000 |
| 20 | $246,000 |
| 25 | $511,000 |
| 30 | $1,043,000 |
Data source: Author's calculations via investor.gov.
If this ETF continues to outperform, as it has over the last couple of years, it could be a lucrative long-term investment. However, given the volatility of tech stocks, prepare for short-term turbulence if you choose to invest.
As part of a well-diversified portfolio, the Vanguard Information Technology ETF can help build life-changing wealth. While there are no guarantees in the stock market, this fund offers a solid track record for those seeking exposure to the fast-growing tech sector.
Should you buy stock in Vanguard Information Technology ETF right now?
Before you buy stock in Vanguard Information Technology ETF, consider this:
The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Vanguard Information Technology ETF wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.
Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $445,672!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,280,566!*
Now, it’s worth noting Stock Advisor’s total average return is 948% — a market-crushing outperformance compared to 206% for the S&P 500. Don't miss the latest top 10 list, available with Stock Advisor, and join an investing community built by individual investors for individual investors.
See the 10 stocks »
*Stock Advisor returns as of June 10, 2026.
Katie Brockman has positions in Vanguard Information Technology ETF. The Motley Fool has positions in and recommends Apple, Micron Technology, Microsoft, and Nvidia. The Motley Fool has a disclosure policy.
Recommended Articles
