If You Invested $1,000 in VGT 10 Years Ago, Here's What You'd Have Today

Although individual stocks usually get much of investors' attention, exchange-traded funds (ETFs) can often be just as lucrative, if not more so. The Vanguard Information Technology ETF (NYSEMKT: VGT) is a good example of this.

As of Monday's prices, VGT is up 790% over the past 10 years, meaning a $1,000 investment made then would be worth around $8,900 today. Including dividends, the gains jump to 874%, which would take a $1,000 investment to over $9,740.

VGT holds 323 stocks in the information technology sector. It has grown steadily over the past decade, but much of its price appreciation has come in the past few years, driven by the current AI boom. And much of that has come from its top holdings. Nvidia, Apple, and Microsoft alone account for nearly 42% of the ETF, so their performances have a huge impact on VGT's performance. If you're looking for a tech ETF, VGT is a good choice.

It's worth noting that VGT is missing key tech stocks due to how they're classified by sector. Companies such as Amazon, Alphabet, and Meta Platforms would be considered tech companies by most standards, but they technically belong to different sectors because their main revenue sources come from retail and advertising. Because of that, they're not in the tech sector and therefore not included in VGT. Still, VGT has outperformed popular ETFs like the Invesco QQQ Trust ETF, which includes these companies.

Stefon Walters has positions in Apple and Microsoft. The Motley Fool has positions in and recommends Alphabet, Amazon, Apple, Meta Platforms, Microsoft, and Nvidia. The Motley Fool has a disclosure policy.