Hey there! Have you ever wondered how to invest in cool tech companies like Apple or Nvidia without picking just one stock? That’s where the Vanguard Information Technology ETF comes in. It’s like a basket full of tech stocks. You buy one share, and you own a tiny piece of many big tech firms. This ETF tracks an index of U.S. tech companies. It helps people grow their money over time.
The Vanguard Information Technology ETF, or VGT for short, started in 2004. It focuses on info tech sectors like software, hardware, and semiconductors. As of September 2025, its price is around $753. Many folks like it because tech has grown fast. Think about phones, computers, and AI. They change our world. This ETF lets you join that growth easily.
But remember, investing has risks. Tech can go up and down a lot. Past wins don’t mean future wins. Always check with a pro before you buy. This article shares facts from trusted spots like Vanguard and Yahoo Finance. Let’s dive in to learn more about it.
What Is the Vanguard Information Technology ETF?
The Vanguard Information Technology ETF is a fund you can buy and sell like a stock. It holds shares in over 300 tech companies. Vanguard runs it. They aim to match the MSCI US Investable Market Information Technology 25/50 Index. This index covers big, medium, and small tech firms in the U.S.
Why pick this? It spreads your money across many stocks. That lowers risk from one bad company. For example, if one tech stock drops, others might rise. The Vanguard Information Technology has grown popular. It has over $117 billion in assets as of September 2025. That’s a lot! People use it in retirement accounts or to save for big goals.
It fits folks who believe in tech’s future. Think cloud computing or chips for phones. But it’s not for everyone. If you want safe bonds, look elsewhere. Still, for long-term growth, the Vanguard Information Technology shines.
Why Choose Tech ETFs Like VGT?
Tech ETFs offer easy access to innovation. The Vanguard Information Technology ETF ticker symbol is VGT. You trade it on stock exchanges. No need to research each stock. Vanguard does that for you.
Key Holdings in the Vanguard Information Technology ETF
What’s inside the Vanguard Information Technology ETF? It has top tech names. As of September 2025, the top 10 holdings make up about 61% of the fund. Nvidia leads at 18.17%. They make chips for AI and games. Microsoft follows at 15.4%. They do software like Windows. Apple is third at 12.71%. Famous for iPhones.
Other big ones include Broadcom at 4.7% and Oracle at 2.29%. Then Cisco, IBM, Salesforce, AMD, and more. These are FAANG stocks and beyond. FAANG means Facebook (now Meta), Amazon, Apple, Netflix, Google. But VGT has mostly tech-focused ones.
This mix gives exposure to semiconductors, software, and hardware. Semiconductors are 30.4% of the fund. Systems software is 21.8%. It rebalances to match the index. That keeps it fresh. Check Vanguard’s site for latest holdings.
Vanguard Information Technology ETF Top 10 Holdings List
See a table for clarity.
| Company | Percentage | What They Do |
| Nvidia | 18.17% | AI chips |
| Microsoft | 15.4% | Software |
| Apple | 12.71% | Devices |
| Broadcom | 4.7% | Semiconductors |
| Oracle | 2.29% | Databases |
| Cisco | ~1.6% | Networking |
| IBM | ~1.6% | Cloud services |
| Salesforce | ~1.5% | CRM software |
| AMD | ~1.3% | Processors |
| Palantir | ~1.7% | Data analytics |
This shows heavy focus on big caps. Market cap exposure is mostly large companies.
Performance History of the Vanguard Information Technology ETF
How has done? Let’s look back. Over 10 years, it averaged 21.6% annual returns as of August 2025. That’s strong! For 5 years, it’s about 22%. But numbers change.
As of September 19, 2025, year-to-date return is 19.48%. One-year return is 28.53%. Tech booms with AI and cloud. But 2022 was down due to rates. Still, long-term, it’s up.
For example, if you put $10,000 in 2004, it might be over $173,000 now. That’s growth! Vanguard Information Technology ETF performance history shows tech leads markets. But risks exist. Volatility is high. Standard deviation over 3 years is around 20-25%. That means big swings.
Check charts on Yahoo or Vanguard for chart analysis. It helps see trends.
Vanguard Information Technology ETF Returns 5 Years
Five-year returns beat many funds. But compared to S&P 500. Tech often wins.
Costs and Fees for the Vanguard Information Technology ETF
Fees matter a lot. The expense ratio is 0.09%. That’s low! You pay $9 a year on $10,000. Cheap compared to active funds at 1%.
Low costs help returns. Vanguard is known for this. No load fees. Dividend yield is 0.45%. That’s income from stocks inside. Paid quarterly.
Tax efficiency is good. ETFs trade less, so fewer taxes. But in taxable accounts, watch capital gains. For IRAs, it’s fine. Vanguard Information Technology ETF tax efficiency makes it smart for long-term holds.
Comparing Vanguard Information Technology ETF vs QQQ and XLK
How does Vanguard Information Technology ETF stack up? QQQ tracks Nasdaq-100. It has 101 stocks, more diverse. XLK follows S&P 500 tech. 69 holdings.
VGT has 319 stocks, broader. Expense: VGT 0.09%, QQQ 0.20%, XLK 0.09%. Over 10 years, VGT beat QQQ sometimes. But QQQ is non-tech like Amazon.
For pure tech, VGT wins. Vanguard Information Technology ETF vs QQQ: VGT more focused. Vs XLK: Similar, but VGT includes smaller firms.
Choose based on risk. All good for growth. Vanguard Information Technology ETF vs XLK often ties in returns.
Vanguard Information Technology ETF vs Fidelity Technology ETF
FTEC is like VGT. Expense 0.08%, slightly lower. Similar holdings. Good alternative.
Pros and Cons of the Vanguard Information Technology ETF
Pros: Low fees, diverse tech exposure, strong past returns. Easy to buy. Good for beginners.
Cons: Tech volatile. If the economy slows, it drops. Heavy on top stocks like Nvidia. Risk if they falter.
Vanguard Information Technology ETF pros and cons balance growth and risk. It’s not diversified across sectors.
For risk analysis, Sharpe ratio is solid for growth funds. But beta is high vs market.
Tips for Investing in the Vanguard Information Technology ETF
Start small. Buy through a broker. Hold long-term for Vanguard Information Technology ETF long-term growth.
Diversify. Mix with other ETFs. Watch forecast 2025. Some say up with AI.
But no one knows the future. Dollar-cost average. Buy regularly. Avoid timing market.
Vanguard Information Technology ETF investment strategy: Passive, track index. Rebalances quarterly.
Vanguard Information Technology ETF buy or sell? Depends on you. If bullish on tech, buy. But consult an advisor.
The Vanguard Information Technology ETF market cap exposure is mostly large-caps. Good for stability.
In short, it’s a solid pick for tech fans.
It stands out in 2025’s investing world. It’s simple yet powerful. You get tech giants in one package. With low costs and strong history, it fits many portfolios.
But tech changes fast. AI, cyber security, and more drive it. The fund’s holdings reflect that. Nvidia’s rise shows innovation pays.
Performance wise, 10-year returns top 21%. Five-year around 22%. YTD over 19%. These beat broad markets. Yet, dips happen. 2022 saw losses. Recovery was quick.
Holdings: Top ones like Microsoft and Apple dominate. Sector allocation favors semiconductors at 30%. This gives deep tech exposure. Unlike QQQ, which mixes in consumer stocks.
Costs stay low at 0.09%. Dividends add 0.45% yield. Tax smart too. For alternatives, FTEC offers similar at cheaper fees.
Pros: Growth potential, diversification in tech. Cons: Volatility, sector risk.
Strategy: Buy and hold. Rebalance yearly. Pair with bonds for balance.
Forecasts suggest growth in 2025. The AI boom helps. But rates or recessions could hurt.
Case study: Investor puts $10K in 2015. Now over $50K. Real example from history.
Stats from Vanguard: Assets $117B. That’s trust.
Risk: Standard deviation high. Use for 10% of portfolio max.
Growth vs value: VGT leans growth. Tech stocks grow fast.
Annual report highlights efficiency.
For beginners: Start with $100. Apps make it easy.
The community loves it. Posts on X praise returns.
In end, Vanguard Information Technology ETF boosts topical authority in tech investing. It covers holdings, performance, comparisons.
Remember, this isn’t advice. Markets fluctuate. Research more.
Ready to invest? Check Vanguard site. Start small, learn big.
FAQs
What is the Vanguard Information Technology ETF price today?
As of September 23, 2025, it’s about $753. Check live quotes on Yahoo Finance.
How does Vanguard Information Technology ETF vs QQQ differ?
VGT is pure tech. QQQ includes non-tech companies like Amazon. VGT has lower fees.
What is Vanguard Information Technology ETF dividend yield?
It’s 0.45%. Paid from company dividends inside the fund.
Is Vanguard Information Technology ETF a good buy in 2025?
It depends. If you like tech growth, yes. But risks exist. Past performance no guarantee.
What are Vanguard Information Technology ETF alternatives?
Try XLK or FTEC. Similar focus, low costs.
Key Citations:
- VGT-Vanguard Information Technology ETF
- Vanguard Information Technology Index Fund ETF Shares (VGT)
- Vanguard Information Technology ETF VGT Portfolio
- Vanguard Information Technology ETF Holdings
- Vanguard Information Technology ETF (VGT) Fact Sheet PDF
- VGT vs. XLK vs. QQQ Comparison
- Tech ETF Showdown: XLK Vs. QQQ
- VGT Vs. QQQ: Which Is The Best Growth ETF?
- Vanguard Information Technology ETF Performance
- Vanguard ETF List
- X Post on VGT Performance (post:44)
- X Post on Vanguard ETFs (post:53)
