History Says This 1 ETF Could Turn $1,000 Into $38,000 in 20 Years. Here's How.

Source The Motley Fool

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.

Over the past...

Missed AI’s "Act 1"? Act 2 Could Be 15x Bigger. Most investors think they missed the AI boat because they didn't buy Nvidia in 2005. But according to our analysts, we’re only at the end of "Act 1"—the R&D phase. "Act 2" is the global rollout. Continue »

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.

Two smiling people skydiving.

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.

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 $379,123!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,408,822!*

Now, it’s worth noting Stock Advisor’s total average return is 950% — a market-crushing outperformance compared to 215% 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 11, 2026.

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.

Disclaimer: For information purposes only. Past performance is not indicative of future results.
placeholder
Hurricane Isaias has shut in a quarter of Gulf oil output — can WTI clear $92 before Thursday's EIA report?WTI trades at $90.80 after rebounding roughly 3% from Wednesday's $87.96 low as Hurricane Isaias — the Atlantic season's first — forces producers to shut in about 25% of US Gulf of Mexico output. Brent holds at $103.41. The first official read on the disruption arrives with the EIA weekly petroleum report on Thursday 15 October — here are the key levels and both scenarios.
Author  Irene Q.
Oct 09, Fri
WTI trades at $90.80 after rebounding roughly 3% from Wednesday's $87.96 low as Hurricane Isaias — the Atlantic season's first — forces producers to shut in about 25% of US Gulf of Mexico output. Brent holds at $103.41. The first official read on the disruption arrives with the EIA weekly petroleum report on Thursday 15 October — here are the key levels and both scenarios.
placeholder
US September CPI preview: inflation set to hit 3.7% — will the Fed hike in December?US September CPI lands Wednesday with headline inflation seen at 3.7% y/y and core at 0.2% m/m. December hike odds sit near 70% — here are the scenarios, the calendar and the key levels.
Author  Irene Q.
Oct 10, Sat
US September CPI lands Wednesday with headline inflation seen at 3.7% y/y and core at 0.2% m/m. December hike odds sit near 70% — here are the scenarios, the calendar and the key levels.
placeholder
Gold posts first weekly gain in three weeks — can $4,200 hold through CPI?Spot gold closed at $4,194.645, up 1.47% — its first weekly gain in three weeks — and COMEX futures settled back above $4,200 at $4,220.30. Here are the drivers, the levels and the scenarios into Wednesday's CPI.
Author  Irene Q.
Oct 10, Sat
Spot gold closed at $4,194.645, up 1.47% — its first weekly gain in three weeks — and COMEX futures settled back above $4,200 at $4,220.30. Here are the drivers, the levels and the scenarios into Wednesday's CPI.
placeholder
Brent swings $105.63 to $102.33 as Gulf risk meets an 'energy ceasefire' — can $100 hold into CPI?Brent spiked to $105.63 in Asian trade on fresh Middle East supply incidents, then reversed to $102.33 after the US announced a Russia-Ukraine 'energy ceasefire' and 300,000+ tonnes of Russian diesel headed to global markets; WTI fell through $90. Here are the drivers, the levels and the scenarios into Wednesday's US CPI.
Author  Irene Q.
20 hours ago
Brent spiked to $105.63 in Asian trade on fresh Middle East supply incidents, then reversed to $102.33 after the US announced a Russia-Ukraine 'energy ceasefire' and 300,000+ tonnes of Russian diesel headed to global markets; WTI fell through $90. Here are the drivers, the levels and the scenarios into Wednesday's US CPI.
placeholder
Bank earnings kick off tomorrow with the S&P 500 seven points from a record — what JPMorgan, Goldman, Citi and Wells Fargo must proveQ3 earnings season starts Tuesday with JPMorgan, Goldman Sachs, Citigroup and Wells Fargo reporting before the open — with the S&P 500 just 7 points from its record close, bank stocks down 7.5% over the past month, and September CPI landing the next day. Here are the numbers to watch, the two-sided setup and the levels that matter.
Author  Irene Q.
20 hours ago
Q3 earnings season starts Tuesday with JPMorgan, Goldman Sachs, Citigroup and Wells Fargo reporting before the open — with the S&P 500 just 7 points from its record close, bank stocks down 7.5% over the past month, and September CPI landing the next day. Here are the numbers to watch, the two-sided setup and the levels that matter.
goTop
quote