If You Invest $300 Per Month in the Vanguard Information Technology ETF for 20 Years, Here's What History Says You Could End Up With

Source Motley_fool

Key Points

  • The Vanguard Information Technology ETF has produced a total annualized return of more than 17% in the past two decades.

  • While the top holdings in this ETF have earned the respect of shareholders, investors should set the right expectations about what the future will bring.

  • 10 stocks we like better than Vanguard Information Technology ETF ›

Buying and holding exchange-traded funds (ETFs) is a smart way for the average investor to build sizable wealth in the long run. And it's difficult to find options that have outperformed the Vanguard Information Technology ETF (NYSEMKT: VGT).

Over the past 20 years, this supercharged ETF has generated a total return of 2,320% (as of Sept. 28). If you invest $300 per month in it over a two-decade span, here's what you could end up with.

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ETF written on dice with red and green arrows on last one.

Image source: Getty Images.

It should go without saying, but past returns are no guarantee of future results. Nonetheless, if we assume that the Vanguard Information Technology ETF performs similarly in the coming 20 years as it did in the prior two decades, then a $300 monthly investment would be worth a jaw-dropping $527,000 in September 2046.

Allocating capital like this on a recurring schedule is a widely used strategy known as dollar-cost averaging. The evidence clearly shows that the results can be exceptional.

The Vanguard Information Technology ETF has been such a strong performer because it has benefited from the monster successes of companies like Nvidia, Apple, and Microsoft. Their dominance has been impressive. Given their extensive exposure to the artificial intelligence wave, bullish investors believe their futures are bright.

But don't be surprised if investment gains decline in the years ahead. While owning technology stocks has been quite lucrative in the past, it's best to set the right expectations.

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 $365,910!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,418,530!*

Now, it’s worth noting Stock Advisor’s total average return is 930% — a market-crushing outperformance compared to 211% 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 October 3, 2026.

Neil Patel has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Apple, Microsoft, and Nvidia. The Motley Fool has a disclosure policy.

Disclaimer: For information purposes only. Past performance is not indicative of future results.
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