VGT’s 0.09% expense ratio and 799% total return highlight its role as a low-cost tech exposure vehicle for long-term investors.
The Vanguard Information Technology Index Fund ETF (VGT) has returned 799% over the past decade, turning each dollar invested into roughly nine. The fund’s razor-thin 0.09% fee and focus on dominant U.S. tech platforms drive its performance, though concentration risks remain significant.
VGT tracks the MSCI US Investable Market Information Technology 25/50 Index, holding over 315 stocks with $146.5 billion in assets. Its top three holdings account for about 40% of the fund, exposing it to volatility in mega-cap tech names like Nvidia, which recently faced a $588 billion market cap decline.
Investors are advised to allocate 10-20% of portfolios to VGT alongside broader market exposure to balance sector-specific risks while capturing long-term tech growth.