If You'd Thrown $10,000 at This Vanguard Tech ETF 10 Years Ago, Here's the Jaw-Dropping Amount You'd Have Now
Key Points
The Vanguard Information Technology ETF has more than doubled the S&P 500's 10-year returns.
It invests in over 300 tech stocks and charges a low annual fee of 0.09%.
- 10 stocks we like better than Vanguard Information Technology ETF ›
Tech exchange-traded funds (ETFs) are a good way to get broad exposure to the tech sector. The Vanguard Information Technology ETF (NYSEMKT: VGT) is the largest by assets under management (AUM), as of Jan. 9, and it has performed extremely well over the last decade.
Just how well has it done? To find out, we can look at how much a reasonable investment in this Vanguard ETF would've returned.
Where to invest $1,000 right now? Our analyst team just revealed what they believe are the 10 best stocks to buy right now. Continue »
Image source: Getty Images.
Here's how much $10,000 in this Vanguard ETF would've grown
If you'd put $10,000 into the Vanguard Information Technology ETF 10 years ago, you'd now have $83,310. For perspective, the same amount invested in the S&P 500 index would've turned into $43,090. This Vanguard tech ETF has more than doubled the market's return, as measured by the S&P 500.
The primary reason for those market-beating returns is this ETF's tech focus. The tech sector has significantly outperformed the broader market over the last decade, particularly in recent years with the rise of artificial intelligence (AI). The Vanguard Information Technology ETF currently invests in 322 tech companies, with Nvidia, Microsoft, Broadcom, and Palantir Technologies being among its largest holdings.
Low fees are the other key ingredient in this ETF's success. Vanguard is known for charging rock-bottom fees, and that's the case here, as this ETF has an expense ratio of just 0.09%. For every $10,000 you invest, you pay just $9 in annual fees.
The downside to the tech sector is that it's also more volatile than the broader market. Bear markets will often cause steeper drops in tech-heavy portfolios. If you're willing to ride out volatility, and you'd like to add hundreds of tech stocks to your portfolio in a single investment, the Vanguard Information Technology ETF is worth a look.
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 $482,451!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,133,229!*
Now, it’s worth noting Stock Advisor’s total average return is 968% — a market-crushing outperformance compared to 197% 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 January 13, 2026.
Lyle Daly has positions in Broadcom, Nvidia, and Vanguard Information Technology ETF. The Motley Fool has positions in and recommends Microsoft, Nvidia, and Palantir Technologies. The Motley Fool recommends Broadcom and recommends the following options: long January 2026 $395 calls on Microsoft and short January 2026 $405 calls on Microsoft. The Motley Fool has a disclosure policy.
Recommended Articles
