Vanguard’s tech ETF has delivered 25% annualized returns over 10 years, doubling the S&P 500’s 10% average.
The Vanguard Information Technology ETF (VGT) has averaged 25% annual returns over the past decade, outpacing the S&P 500’s 10% long-term average. The fund’s performance includes periods of volatility, such as the 2020 pandemic and 2022 bear market, but has been driven by the AI boom and tech sector growth.
Over the same period, the Vanguard S&P 500 ETF (VOO) returned 15% annually. Tech stocks have emerged as a key earnings growth engine, with innovations like AI and cybersecurity fueling multi-year bull markets. However, the sector remains prone to sharp drawdowns of 10% or more.
The ETF’s long-term gains reflect broader trends in technology-driven economic expansion, though short-term volatility remains a risk for investors.