Should You Invest in the Vanguard Information Technology ETF (VGT)?

Launched on January 26, 2004, the Vanguard Information Technology ETF (VGT) is a passively managed exchange traded fund designed to provide a broad exposure to the Technology - Broad segment of the equity market.

While an excellent vehicle for long term investors, passively managed ETFs are a popular choice among institutional and retail investors due to their low costs, transparency, flexibility, and tax efficiency.

Invest in Gold

 ### Thor Metals Group: Best Overall Gold IRA

Learn More ### Priority Gold: Up to $15k in Free Silver + Zero Account Fees on Qualifying Purchase

Learn More ### American Hartford Gold: #1 Precious Metals Dealer in the Nation

Learn More Powered by Money.com - Yahoo may earn commission from the links above. Investor-friendly, sector ETFs provide many options to gain low risk and diversified exposure to a broad group of companies in particular sectors. Technology - Broad is one of the 16 broad Zacks sectors within the Zacks Industry classification. It is currently ranked 5, placing it in top 31%.

Index Details

The fund is sponsored by Vanguard. It has amassed assets over $100.82 billion, making it the largest ETF attempting to match the performance of the Technology - Broad segment of the equity market. VGT seeks to match the performance of the MSCI US Investable Market Information Technology 25/50 Index before fees and expenses.

The MSCI US Investable Market Information Technology 25/50 Index is designed to transition in and out of securities affected by pending updates to the information technology sector.

Costs

When considering an ETF's total return, expense ratios are an important factor, and cheaper funds can significantly outperform their more expensive counterparts in the long term if all other factors remain equal.

Annual operating expenses for this ETF are 0.09%, making it one of the least expensive products in the space.

It has a 12-month trailing dividend yield of 0.44%.

Sector Exposure and Top Holdings

It is important to delve into an ETF's holdings before investing despite the many upsides to these kinds of funds like diversified exposure, which minimizes single stock risk. And, most ETFs are very transparent products that disclose their holdings on a daily basis.

This ETF has heaviest allocation in the Information Technology sector -- about 99.9% of the portfolio.

Looking at individual holdings, Nvidia Corp (NVDA) accounts for about 16.75% of total assets, followed by Microsoft Corp (MSFT) and Apple Inc (AAPL).

Performance and Risk

So far this year, VGT has added roughly 13.78%, and it's up approximately 31.72% in the last one year (as of 08/13/2025). During this past 52-week period, the fund has traded between $470.37 and $706.07.

The ETF has a beta of 1.25 and standard deviation of 24.78% for the trailing three-year period, making it a medium risk choice in the space. With about 321 holdings, it effectively diversifies company-specific risk.

Story Continues## Alternatives

Vanguard Information Technology ETF holds a Zacks ETF Rank of 2 (Buy), which is based on expected asset class return, expense ratio, and momentum, among other factors. Because of this, VGT is an excellent option for investors seeking exposure to the Technology ETFs segment of the market. There are other additional ETFs in the space that investors could consider as well.

iShares U.S. Technology ETF (IYW) tracks Dow Jones U.S. Technology Index and the Technology Select Sector SPDR ETF (XLK) tracks Technology Select Sector Index. iShares U.S. Technology ETF has $23.33 billion in assets, Technology Select Sector SPDR ETF has $85.64 billion. IYW has an expense ratio of 0.39%, and XLK charges 0.08%.

Bottom Line

To learn more about this product and other ETFs, screen for products that match your investment objectives and read articles on latest developments in the ETF investing universe, please visit Zacks ETF Center.

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report

Vanguard Information Technology ETF (VGT): ETF Research Reports

This article originally published on Zacks Investment Research (zacks.com).

Zacks Investment Research

View Comments

IN-10.55%
This page may contain third-party content, which is provided for information purposes only (not representations/warranties) and should not be considered as an endorsement of its views by Gate, nor as financial or professional advice. See Disclaimer for details.
  • Reward
  • Comment
  • Repost
  • Share
Comment
0/400
No comments
Trade Crypto Anywhere Anytime
qrCode
Scan to download Gate app
Community
English
  • ็ฎ€ไฝ“ไธญๆ–‡
  • English
  • Tiแบฟng Viแป‡t
  • ็น้ซ”ไธญๆ–‡
  • Espaรฑol
  • ะ ัƒััะบะธะน
  • Franรงais (Afrique)
  • Portuguรชs (Portugal)
  • Bahasa Indonesia
  • ๆ—ฅๆœฌ่ชž
  • ุจุงู„ุนุฑุจูŠุฉ
  • ะฃะบั€ะฐั—ะฝััŒะบะฐ
  • Portuguรชs (Brasil)