Vanguard Information Technology ETF (VGT)
The Vanguard Information Technology ETF (VGT) provides diversified exposure to the U.S. information technology sector. It tracks the MSCI US IMI Info Technology 25/50 Index, covering software, semiconductors, hardware, IT services, and communications equipment companies.
On March 24, 2026, Vanguard announced an 8:1 share split effective April 21, 2026. Historical share price data was not adjusted for the split.
Key Facts
| Field | Value |
|---|---|
| Ticker | VGT |
| Issuer | Vanguard |
| Inception Date | January 26, 2004 |
| Expense Ratio | 0.09% |
| Benchmark | MSCI US IMI Info Technology 25/50 Index |
| Asset Class | Domestic Stock — Sector-Specific |
| Category | Technology |
| AUM | ~$147.3B |
| AUM (Share Class) | ~$147.3B |
| 30-Day SEC Yield | 0.29% |
| Dividend Frequency | Quarterly |
| Structure | Open-End ETF |
Data as of 05/31/2026 from Vanguard. Expense ratio as of 12/19/2025.
Latest Price Data
| Field | Value |
|---|---|
| NAV | $119.57 |
| Market Price (Close) | $119.57 |
| Daily Change (NAV) | +$3.06 (+2.63%) |
| 52-Week High | $809.06 (pre-split) |
| 52-Week Low | $100.97 (post-split) |
| 30-Day Median Bid/Ask Spread | 0.02% |
| 25-Day Avg Volume | ~5.6M shares/day |
| Data As Of | 2026-06-30 |
VGT completed an 8:1 share split on April 21, 2026, which reset the share price from ~$800 to ~$100. The 52-week high reflects the pre-split price.
Portfolio Characteristics
As of 05/31/2026:
| Fundamental Metric | VGT | Benchmark |
|---|---|---|
| Number of Holdings | 323 | |
| Median Market Cap | $1.1T | $1.1T |
| P/E Ratio | 38.4x | 38.4x |
| P/B Ratio | 11.0x | 11.0x |
| Earnings Growth Rate | 33.3% | 33.3% |
| Return on Equity | 40.7% | 40.7% |
| Turnover Rate (FYE 08/31/2025) | 7.8% | — |
| Foreign Holdings | 0.0% | — |
VGT holds 323 stocks with a massive $1.1 trillion median market cap, reflecting its heavy concentration in mega-cap technology companies. The P/E ratio of 38.4x underscores the growth premium investors assign to the tech sector. The fund’s 33.3% earnings growth rate and 40.7% return on equity highlight the exceptional profitability of its underlying holdings.
Top 10 Holdings
As of 05/31/2026:
| # | Holding | Ticker | Weight |
|---|---|---|---|
| 1 | NVIDIA Corp. | NVDA | 16.78% |
| 2 | Apple Inc. | AAPL | 15.26% |
| 3 | Microsoft Corp. | MSFT | 9.87% |
| 4 | Broadcom Inc. | AVGO | 4.49% |
| 5 | Micron Technology Inc. | MU | 4.19% |
| 6 | Advanced Micro Devices Inc. | AMD | 3.20% |
| 7 | Intel Corp. | INTC | 1.95% |
| 8 | Cisco Systems Inc. | CSCO | 1.85% |
| 9 | Lam Research Corp. | LRCX | 1.55% |
| 10 | Oracle Corp. | ORCL | 1.45% |
NVIDIA and Apple alone account for 32.04% of the fund’s assets, making VGT highly concentrated in its top holdings. The dominance of semiconductors (NVDA, AVGO, MU, AMD, LRCX — 5 of the top 10) reflects the AI-driven semiconductor boom that has reshaped the tech landscape.
Industry Exposure
As of 05/31/2026:
| Industry | Weight |
|---|---|
| Semiconductors | 37.9% |
| Technology Hardware, Storage & Peripherals | 19.6% |
| Systems Software | 14.9% |
| Application Software | 9.1% |
| Communications Equipment | 4.1% |
| Semiconductor Materials & Equipment | 5.6% |
| Electronic Components | 2.0% |
| IT Consulting & Other Services | 2.0% |
| Internet Services & Infrastructure | 1.7% |
| Electronic Equipment & Instruments | 1.3% |
| Electronic Manufacturing Services | 1.3% |
| Technology Distributors | 0.5% |
The semiconductor industry dominates at nearly 38% of the portfolio, a sharp increase driven by NVIDIA’s massive weighting. Hardware and software each account for roughly 20% and 24% respectively. This mix makes VGT highly correlated with AI infrastructure spending, data centre expansion, and chip demand cycles.
Historical Performance
Annual Returns (NAV)
| Year | Return (%) |
|---|---|
| 2026 YTD | +27.22% |
| 2025 | +21.78% |
| 2024 | +29.27% |
| 2023 | +52.67% |
| 2022 | -29.67% |
| 2021 | +30.38% |
| 2020 | +45.94% |
| 2019 | +48.68% |
| 2018 | +2.52% |
| 2017 | +37.07% |
| 2016 | +13.73% |
Average Annual Returns (as of 06/30/2026)
| Period | VGT (Market Price) | VGT (NAV) |
|---|---|---|
| YTD | +27.13% | +27.22% |
| 1 Year | +44.80% | +44.93% |
| 3 Year | +30.03% | +30.04% |
| 5 Year | +19.90% | +19.92% |
| 10 Year | +25.59% | +25.60% |
| Since Inception (01/26/2004) | +14.95% | +14.95% |
VGT has delivered extraordinary long-term returns, with a 10-year annualised return of 25.6% — far outpacing the broader market. The fund suffered a severe -29.67% drawdown in 2022 during the Fed’s rate hiking cycle but has since staged an aggressive recovery, with 2023 (+52.67%), 2024 (+29.27%), and 2025 (+21.78%) delivering consecutive years of strong gains. 2026 YTD is already +27.22%, driven by continued AI momentum.
Risk & Volatility
Historical Volatility Measures (as of 05/31/2026)
| Benchmark | R-Squared | Beta |
|---|---|---|
| Information Technology Spliced Index | 1.00 | 1.00 |
| Dow Jones U.S. Total Stock Market Index | 0.76 | 1.38 |
VGT exhibits a beta of 1.38 against the broad U.S. stock market, confirming its heightened volatility relative to the overall market. Its R-squared of 0.76 indicates that ~76% of VGT’s price movements can be explained by broad market movements, while the remainder is driven by tech-specific factors.
Key Risk Factors
- Concentration Risk — NVIDIA (16.78%) and Apple (15.26%) alone represent nearly one-third of the fund. A downturn in either stock would significantly impact VGT’s performance.
- Semiconductor Cyclicality — Nearly 48% of the portfolio is in semiconductors and related equipment, making VGT highly sensitive to chip demand cycles, inventory corrections, and geopolitical tensions affecting the supply chain.
- Valuation Risk — The P/E ratio of 38.4x is elevated relative to historical averages, leaving the fund vulnerable to multiple compression if interest rates remain high or growth expectations moderate.
- Market Volatility — Tech stocks tend to be more volatile than the broader market, reacting sharply to economic data, Fed policy changes, and earnings surprises.
- Regulatory Risk — Antitrust scrutiny, export controls on semiconductor technology, and AI regulation could create headwinds for major holdings.
Investment Outlook
Short-Term (0–12 Months)
- AI-driven capital expenditure by hyperscalers (Microsoft, Amazon, Google) continues to fuel demand for NVIDIA GPUs and data centre infrastructure.
- The Fed’s rate trajectory remains a key swing factor — rate cuts could further boost tech valuations, while persistent inflation would create headwinds.
- Semiconductor inventory cycles and geopolitical risks (China/Taiwan tensions) warrant monitoring.
Medium to Long-Term (1–5 Years)
- AI Infrastructure Buildout: Enterprise AI adoption is still in early innings, supporting sustained demand for semiconductors, cloud services, and software.
- Semiconductor Megacycle: The shift toward AI-optimised chips, edge computing, and 5G/6G networks provides a multi-year growth runway.
- Valuation Normalisation Risk: Elevated P/E multiples could compress if AI monetisation takes longer than expected or if competition erodes margins for key holdings.
Recommendation
| Investor Profile | Recommendation |
|---|---|
| Aggressive growth (10+ year horizon) | Buy — core sector holding for tech-heavy portfolios |
| Moderate / diversified investors | Hold / tactical allocation — limit to 5–15% of equity portfolio |
| Income-focused investors | Avoid — 0.29% SEC yield is among the lowest across sectors |
| Short-term traders | Trade the momentum — high beta creates ample tactical opportunities |
Conclusion
VGT remains the premier vehicle for passive exposure to the U.S. information technology sector. With a rock-bottom 0.09% expense ratio, $170.1B in assets, and a portfolio overwhelmingly tilted toward semiconductors and mega-cap tech, it offers pure-play tech exposure unmatched by active managers at a fraction of the cost.
However, VGT’s extreme concentration — 32% in NVIDIA and Apple alone, 48% in semiconductors — means investors must be comfortable with significant sector-specific risk. The fund’s beta of 1.38 against the broad market means it will amplify both bull and bear moves.
For aggressive long-term investors who believe the AI and semiconductor megacycle has years left to run, VGT is a compelling core holding. For more conservative portfolios, it serves best as a tactical satellite allocation sized to match one’s conviction in tech’s continued outperformance.
Data sourced from Vanguard (investor.vanguard.com) as of June 2026. Past performance does not guarantee future results.