If You'd Invested $1,000 in the Vanguard Information Technology ETF (VGT) 10 Years Ago, Here's What You'd Have Today

Source The Motley Fool

Key Points

  • Tech stocks can be lucrative, and an ETF can limit risk while maximizing long-term earnings.

  • The Vanguard Information Technology ETF has a long history of beating the market.

  • Investing small amounts consistently could help you accumulate hundreds of thousands of dollars or more.

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

The right investments can help you build life-changing wealth, and tech stocks are known for their explosive earnings.

Investing in a tech-focused exchange-traded fund (ETF) can be a smart way to gain exposure to this sector with less effort and increased diversification. The Vanguard Information Technology ETF (NYSEMKT: VGT) is a leading tech ETF, and investing 10 years ago would have proven lucrative by today.

Where to invest $1,000 right now? Our analyst team just revealed what they believe are the 10 best stocks to buy right now, when you join Stock Advisor. See the stocks »

Person holding several hundred-dollar bills.

Image source: Getty Images.

How far could $1,000 go over 10 years?

The Vanguard Information Technology ETF contains 314 stocks from all areas of the technology sector, providing ample diversification within this industry. Launched in 2004, it also has a decades-long track record of beating the market over time.

Over the last 10 years, it's earned an average rate of return of 23.45% per year. If you had invested $1,000 a decade ago, you'd have around $7,181 in total by today, as of this writing on Nov. 2, 2025.

That figure assumes you've made no additional contributions in that time and simply let your money grow for 10 years. To really supercharge your earning potential, you could invest a small amount more consistently.

For example, say that rather than making a one-time investment of $1,000, you invest $50 per month. If you continue earning a 23% average annual return, those contributions would add up to around $18,000 after 10 years. If you have even more time to invest, you could earn exponentially more.

Number of Years Total Portfolio Value
10 $18,000
15 $56,000
20 $161,000
25 $459,000

Data source: Author's calculations via investor.gov.

Time is your most valuable resource when investing in the stock market, and small monthly contributions can add up to hundreds of thousands of dollars or more over decades.

Should you invest in a tech ETF?

Tech stocks and ETFs can be lucrative investment opportunities, but they also carry more risk than those from more established industries. The tech sector often experiences more severe corrections during market downturns, sometimes even underperforming the market during particularly difficult slumps.

The good news is that, historically, the Vanguard Information Technology ETF has consistently recovered from even the worst recessions and bear markets. But the short term can be stomach-churning, especially for more risk-averse investors.

Stay the course

If you choose to invest in a tech fund, be prepared to stay in the market for the long haul. Timing the market can be incredibly risky, especially with investments that are more prone to volatility. The safest way to build wealth with this type of ETF is to contribute consistently and stay invested for at least five to 10 years.

The Vanguard Information Technology ETF may be more volatile in the short term, but it also has a long track record of lucrative returns. With enough time and consistency, it's possible to accumulate hundreds of thousands of dollars with this investment.

Should you invest $1,000 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 $603,392!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,241,236!*

Now, it’s worth noting Stock Advisor’s total average return is 1,072% — a market-crushing outperformance compared to 194% for the S&P 500. Don’t miss out on the latest top 10 list, available when you join Stock Advisor.

See the 10 stocks »

*Stock Advisor returns as of November 3, 2025

Katie Brockman has positions in Vanguard Information Technology ETF. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.

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