The Vanguard Information Technology ETF (NYSEMKT: VGT) has shown impressive growth, particularly due to its heavy focus on semiconductor and tech stocks. Over the past three years, it has averaged an annual gain of 35.50%, while its five-year, ten-year, and fifteen-year averages are 21.47%, 25.10%, and 22.28% respectively, according to data from Morningstar.com as of October 6, 2026.
If you invested $1,000 in this ETF and it grew at an average annual rate of 20% for 20 years, your stake could reach approximately $38,000. However, the article cautions that such projections are not guaranteed, as market crashes or corrections could affect performance. The ETF's top holdings include Nvidia (17.73%), Apple (15.79%), and Microsoft (11.51%), along with other semiconductor stocks that have benefited from the AI boom.
The article also notes that while the Vanguard Information Technology ETF has performed well, it may not be the best investment option right now. The Motley Fool Stock Advisor team identified ten other stocks they believe could offer better returns, highlighting past successes like Netflix and Nvidia, which delivered significant gains for investors who followed their recommendations.