Average Daily Volume
768.4K
Fund Overview
The Vanguard Information Technology ETF (VGT) is an exchange-traded fund that provides investors with exposure to the information technology sector of the U.S. equity market. VGT seeks to track the performance of the MSCI US Investable Market Information Technology 25/50 Index, which includes large, mid, and small-cap U.S. stocks within the technology sector. The fund holds a diversified portfolio of companies involved in software, hardware, semiconductors, and IT services, including industry giants like Apple, Microsoft, and NVIDIA. With a low expense ratio of 0.10%, VGT is a cost-effective way to gain targeted exposure to the tech sector. The fund is ideal for investors seeking growth potential through technology-driven companies while benefiting from Vanguard's reputation for low-cost index investing.
- Asset Class
-
Equity
- Industry
-
Broad Technology
- Annual Dividend Rate
-
- Smart Beta
-
No
- Leveraged / Inverse
-
N/A / No
- Dividend Quality - Yield
-
- 0.48 %
- Currency Hedged
-
No
- Portfolio Turnover
-
13 %
- Dividend Date
-
Why Invest in the VGT ETF?
Potential Benefits
- Provides concentrated exposure to the high-growth technology sector, which has historically outperformed broader markets.
- Low expense ratio (0.10%) makes it one of the most cost-efficient tech sector ETFs available.
- Diversified across large, mid, and small-cap tech stocks, reducing single-stock risk.
- Includes industry leaders like Apple, Microsoft, and NVIDIA, offering stability alongside growth potential.
- Highly liquid with substantial assets under management (AUM), ensuring tight bid-ask spreads.
Potential Risks
- Sector concentration risk—performance heavily tied to the tech sector, which can be volatile.
- Vulnerable to regulatory changes affecting big tech companies, such as antitrust scrutiny.
- Sensitive to interest rate hikes, which can depress valuations of growth-oriented tech stocks.
- Potential overexposure to mega-cap tech stocks, which dominate the index.
RSI data unavailable or insufficient history.
Monthly Returns (%)
| Year |
Jan |
Feb |
Mar |
Apr |
May |
Jun |
Jul |
Aug |
Sep |
Oct |
Nov |
Dec |
| 2026 |
-0.8%
|
-2.8%
|
-3.9%
|
+18.3%
|
+17.3%
|
-1.2%
|
-5.3%
|
+6.5%
|
+4.4%
|
+3.3%
|
-
|
-
|
| 2025 |
-0.8%
|
-2.9%
|
-9.3%
|
+1.3%
|
+10.4%
|
+9.5%
|
+4.1%
|
+0.9%
|
+7.2%
|
+6.2%
|
-5.2%
|
+0.3%
|
| 2024 |
+2.0%
|
+4.8%
|
+1.5%
|
-5.6%
|
+8.1%
|
+8.0%
|
-1.5%
|
+1.0%
|
+2.3%
|
-0.7%
|
+6.9%
|
+0.1%
|
| 2023 |
+9.7%
|
+0.5%
|
+9.7%
|
-0.3%
|
+8.5%
|
+6.2%
|
+2.9%
|
-2.2%
|
-6.5%
|
-1.7%
|
+13.3%
|
+4.9%
|
| 2022 |
-7.8%
|
-4.3%
|
+3.3%
|
-11.8%
|
-1.7%
|
-9.4%
|
+13.4%
|
-5.7%
|
-11.8%
|
+7.4%
|
+5.4%
|
-8.0%
|
| 2021 |
-0.7%
|
+1.5%
|
+0.7%
|
+5.1%
|
-1.2%
|
+7.3%
|
+3.4%
|
+3.5%
|
-5.7%
|
+8.2%
|
+3.1%
|
+2.5%
|
| 2020 |
+3.8%
|
-7.3%
|
-9.8%
|
+14.2%
|
+7.9%
|
+7.0%
|
+5.9%
|
+11.1%
|
-4.9%
|
-4.3%
|
+12.5%
|
+5.7%
|
| 2019 |
+8.0%
|
+7.3%
|
+4.1%
|
+6.4%
|
-8.9%
|
+8.8%
|
+3.5%
|
-2.2%
|
+1.3%
|
+3.8%
|
+5.6%
|
+4.0%
|
| 2018 |
+7.6%
|
+0.1%
|
-3.4%
|
0.0%
|
+7.0%
|
-0.6%
|
+2.6%
|
+8.9%
|
+0.2%
|
-8.5%
|
-1.5%
|
-8.3%
|
| 2017 |
+4.3%
|
+4.9%
|
+2.3%
|
+2.3%
|
+4.4%
|
-2.5%
|
+4.1%
|
+3.1%
|
+0.8%
|
+7.4%
|
+1.1%
|
+0.1%
|
< -5%
-5% to -2%
-2% to 0%
0%
0% to +2%
+2% to +5%
> +5%
Top Holdings (by weight)
| Symbol |
Company Name |
Weight |
|
AAPL
|
APPLE INC |
17.9 % |
|
NVDA
|
NVIDIA CORP |
14.9 % |
|
MSFT
|
MICROSOFT CORP |
13.2 % |
|
AVGO
|
BROADCOM INC |
4.2 % |
|
CRM
|
SALESFORCE INC |
1.8 % |
|
ORCL
|
ORACLE CORP |
1.7 % |
|
CSCO
|
CISCO SYSTEMS INC |
1.6 % |
|
IBM
|
INTERNATIONAL BUSINESS MACHINES CORP |
1.5 % |
|
ACN
|
ACCENTURE PLC CLASS A |
1.4 % |
|
NOW
|
SERVICENOW INC |
1.2 % |
Top 10 holdings shown, out of 315 total holdings.
Related ETFs: VGT vs Peers
Comparison highlights key differences on cost, coverage, and focus within sector ETFs.
Investment Strategy
VGT tracks the MSCI US Investable Market Information Technology 25/50 Index, which includes U.S. stocks classified within the information technology sector. The index is market-cap weighted, meaning larger companies like Apple and Microsoft have a greater influence on performance. The fund primarily holds common stocks of technology companies and is passively managed, meaning it aims to replicate the index rather than outperform it. VGT is rebalanced quarterly to maintain alignment with the index composition, ensuring consistent exposure to the tech sector.
Frequently Asked Questions
Does VGT pay dividends?
Yes, VGT pays quarterly dividends, though yields are typically lower than broader market ETFs due to the growth-oriented nature of tech stocks.
How does VGT differ from QQQ?
VGT focuses exclusively on the technology sector, while QQQ tracks the Nasdaq-100 Index, which includes tech as well as other sectors like consumer discretionary and healthcare.
What percentage of VGT is invested in Apple and Microsoft?
As of the latest holdings data, Apple and Microsoft together account for roughly 35-40% of VGT's portfolio, reflecting their dominant market caps in the tech sector.
Industry Overview
The Vanguard Information Technology ETF (VGT) offers investors exposure to the dynamic and fast-evolving technology sector. This sector includes companies involved in software development, hardware manufacturing, semiconductors, cloud computing, and IT services. The tech industry is known for its high growth potential, driven by innovation, digital transformation, and increasing global reliance on technology solutions. However, it also faces risks such as rapid obsolescence, regulatory challenges, and cyclical demand. VGT provides a diversified way to invest in this sector, capturing both established leaders and emerging innovators.
Alternative Comparison
Compared to its closest peer, the Technology Select Sector SPDR Fund (XLK), VGT offers broader exposure by including mid and small-cap tech stocks, whereas XLK focuses solely on large caps. Another competitor, the Fidelity MSCI Information Technology Index ETF (FTEC), has a similar strategy but with a slightly higher expense ratio (0.084% vs. VGT's 0.10%). Unlike thematic tech ETFs like ARKK, which focus on disruptive innovation, VGT provides a more traditional, diversified approach to tech investing.
Issuer Overview
Vanguard is one of the world's largest and most trusted investment management companies, known for its low-cost index funds and ETFs. Founded by John C. Bogle in 1975, Vanguard pioneered passive investing and remains a leader in providing cost-efficient, transparent investment products. The company's client-owned structure aligns its interests with those of investors, emphasizing long-term value over short-term profits.
Conclusion
VGT is a compelling choice for investors seeking diversified, low-cost exposure to the U.S. technology sector. Its broad portfolio, low fees, and strong track record make it a staple for growth-oriented portfolios. However, investors should be mindful of sector-specific risks and consider balancing VGT with other asset classes to mitigate concentration risk.
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