History Says This 1 ETF Could Turn $1,000 Into $38,000 in 20 Years. Here's How.
Key Points
This tech-stock-heavy ETF has grown at a torrid pace in recent years.
The fact that it owns sizable stakes in many semiconductor stocks explains that.
- 10 stocks we like better than Vanguard Information Technology ETF ›
Are you looking to make your stock portfolio grow faster? If so, you might want to consider investing in the Vanguard Information Technology ETF (NYSEMKT: VGT). Here's how it has performed in recent years.
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Average annual gain |
|---|---|
|
3 years |
35.50% |
|
5 years |
21.47% |
|
10 years |
25.10% |
|
15 years |
22.28% |
Data source: Morningstar.com, as of Oct. 6, 2026.
See? Impressive!
If you invest just $1,000 in it and it grows at an average annual rate of 35% for 20 years, your stake could end up worth... wait for it... more than $400,000! But hold on. That's not a reasonable estimate. Over long periods, the exchange-traded fund has averaged gains closer to 20%. A stock market crash or correction might happen this year or next, which could depress some averages.
Image source: Getty Images.
If your $1,000 instead grows at 20% annually for 20 years, your stake will end up worth about $38,000. Of course, the average growth rate might be lower -- or higher. Remember that the more you can invest, and the longer you can do it, the bigger your stake will likely get.
Here's a look at why the Vanguard Information Technology ETF has performed so well. Check out its recent top holdings.
|
Stock |
Weight in ETF |
|---|---|
|
Nvidia |
17.73% |
|
Apple |
15.79% |
|
Microsoft |
11.51% |
|
Broadcom |
4.52% |
|
Micron Technology |
4.18% |
|
Advanced Micro Devices |
2.95% |
|
Cisco Systems |
1.71% |
|
Palantir Technologies |
1.61% |
|
Intel |
1.54% |
|
Lam Research |
1.49% |
Data source: Vanguard.com, as of Aug. 31, 2026.
Semiconductor stocks have been on a tear in recent years, largely driven by the boom in artificial intelligence (AI), and there are multiple semiconductor stocks among these top holdings. Memory chip stocks have also soared -- major holding Micron Technology, for example, was recently up nearly 450% over the past year!
So take a closer look at the Vanguard Information Technology ETF, understanding that it's full of growth stocks and may pull back sharply in a market correction. If you're a long-term investor, you could still do well. If you're torn, you might just take a small stake in it.
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Selena Maranjian has positions in Advanced Micro Devices, Apple, Broadcom, Micron Technology, Microsoft, and Nvidia. The Motley Fool has positions in and recommends Advanced Micro Devices, Apple, Broadcom, Cisco Systems, Intel, Lam Research, Micron Technology, Microsoft, Nvidia, and Palantir Technologies. The Motley Fool has a disclosure policy.
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