If You'd Invested $10,000 in the Vanguard Information Technology ETF (VGT) 20 Years Ago, Here's What You'd Have Today. (You Might Want to Sit Down.)
Key Points
The Vanguard Information Technology ETF has a great track record.
However, when the stock market falls, it's likely to fall a little harder.
- 10 stocks we like better than Vanguard Information Technology ETF ›
I so wish I'd invested in the Vanguard Information Technology ETF (NYSEMKT: VGT) 20 years ago. If I'd plunked, say, $10,000 into it then, my stake would now be worth $205,000. And if I'd reinvested my dividends in additional shares of the ETF, the value would now be over $234,000. Here's how it has performed:
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Average Annual Gain |
|---|---|
|
3 years |
29.47% |
|
5 years |
18.18% |
|
10 years |
24.24% |
|
15 years |
21.88% |
Data source: Morningstar.com, as of Sept. 2, 2026.
Image source: Getty Images.
That's really impressive, because, for context, the S&P 500 has averaged annual gains of 10% or so over long periods.
What's in the Vanguard Information Technology ETF?
A look at the ETF's holdings will give you an idea of why it has been such a great performer.
|
Stock |
Weight in ETF |
|---|---|
|
Nvidia |
17.15% |
|
Apple |
16.24% |
|
Microsoft |
10.96% |
|
Broadcom |
4.21% |
|
Micron Technology |
3.82% |
|
Advanced Micro Devices |
3.18% |
|
Cisco Systems |
1.91% |
|
Applied Materials |
1.69% |
|
Intel |
1.65% |
|
Lam Research |
1.54% |
Data source: Vanguard.com, as of July 31, 2026.
Clearly, if you want to own lots of tech stocks, this is an appealing fund. But note that while it owns around 319 stocks, its top three holdings recently made up fully 44% of its overall value. So it's quite concentrated in those three stocks.
If you're thinking of investing in this impressive ETF, do note that it's very much a growth-stock fund, and that during market downturns (which are inevitable and happen now and then), growth stocks will often fall especially hard. For example, the S&P 500 dropped around 18% in 2022, but this ETF fell by roughly 30%.
You might hedge your bets by investing both in growth stocks and value stocks, or, if you fear a market crash or correction around the corner, you might keep some cash on hand for bargain-hunting, and/or you might consider investing in a solid dividend-focused ETF. Some of them are not laggards at all and can be great portfolio boosters.
Should you buy stock in Vanguard Information Technology ETF right now?
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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, Applied Materials, Broadcom, Cisco Systems, Intel, Lam Research, Micron Technology, Microsoft, and Nvidia. The Motley Fool has a disclosure policy.
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