Vanguard Information Technology ETF

VGT

Market cap $115B

The Vanguard Information Technology ETF has more than doubled the S&P 500's 10-year returns. It invests in over 300 tech stocks and charges a low annual fee of 0.09%.

The Vanguard Information Technology ETF (VGT) excludes key AI companies because of their categorization. The Invesco QQQ Trust ETF (QQQ) includes Alphabet, Amazon, and Meta, which are excluded from VGT.

Investing in ETFs can be a smart way to strengthen your portfolio with minimal effort on your part. Whether you're seeking greater diversification, above-average growth, or industry-specific exposure, the right ETF can transform your finances.

Tech stocks remain a key component of investor portfolios even with high current valuations. There are risks to investing in tech currently, including the cost/benefit of heavy capex spending and the potential for an economic slowdown.

ETFs can make it easier to buy into the artificial intelligence (AI) industry with less effort than investing in individual stocks. Some AI ETFs are riskier (and more lucrative) than others.

Vanguard Information Technology Index Fund ETF (VGT) rose 21% in 2025, yet valuation concerns may be overstated. Despite higher prices, VGT's P/E ratio has declined as earnings have outpaced price gains. Market narratives about tech overvaluation overlook underlying earnings growth and valuation compression.

Broad tech ETFs can generate lucrative returns with greater protection against risk. With enough time, you could easily double your investment.

VGT charges a much lower expense ratio and offers a higher yield than IYW. IYW has delivered stronger five-year growth, but with a slightly higher drawdown and greater volatility.

The S&P 500 Growth ETF kicks the standard S&P 500 ETF up a notch. The Information Technology ETF is the best-performing Vanguard ETF over the past 10 years.

Investors in the Vanguard Information Technology ETF have done even better than the S&P 500 this past year. The Vanguard ETF focuses on stocks in the information technology sector, including a long list of AI titans.