Vanguard VGT Soars to Stunning Returns Over Two Decades
The Vanguard Information Technology ETF (VGT) has delivered impressive returns over the past two decades. According to Morningstar.com, as of September 2, 2026, the fund's average annual gains are substantial: 29.47% over three years, 18.18% over five years, and 24.24% over ten years.
Investing $10,000 in VGT twenty years ago would have yielded a staggering $205,000, with an additional $234,000 if dividends were reinvested to purchase more shares.
The fund's top holdings are heavy hitters in the tech sector: Nvidia (17.15%), Apple (16.24%), and Microsoft (10.96%). However, this concentration poses a risk during market downturns, as witnessed in 2022 when VGT fell by around 30%, compared to the S&P 500's 18% drop.
For those considering investing in VGT, it's crucial to acknowledge its growth-stock nature and potential for sharp declines. A diversified portfolio that includes both growth and value stocks might be a prudent strategy.