If You’d Invested $5,000 in VGT 10 Years Ago, Here’s Exactly How Much You’d Have Today
Over the past decade, information technology (tech) has easily been the highest-performing sector in the stock market. Its dominance is reflected in the performance of tech ETFs, such as the Vanguard Information Technology ETF (VGT +1.20%).
Over the past decade, VGT is up 736%, meaning a $5,000 investment made then would be worth $41,820 today. With dividends, it would be worth $45,150.
VGT has been around since January 2004, but most of its all-time returns have come in the past decade. In that time, it has averaged 23.7% annual returns (24.6% total returns). It went from smart hardware to cloud computing to the artificial intelligence boom that’s sent tech stocks surging.
Vanguard Information Technology ETF
Today’s Change
(1.20%) $1.44
Current Price
$121.07
Key Data Points
AUM
$160B
Dividend Yield
2.06%
Expense Ratio
0.09%
Top Holdings
NVDA
17.16%
AAPL
16.26%
MSFT
10.97%
VGT is very top-heavy, but that has worked in its favor over the past few years. As of July, Nvidia, Apple, and Microsoft collectively account for over 44% of VGT, so, needless to say, the ETF moves as those stocks do. That hasn’t always been the case, as the ETF’s stock weightings fluctuate with changing market caps.
Image source: Getty Images.
If you feel as if you missed the bus, don’t fret. VGT is well-equipped to remain an attractive ETF, though I wouldn’t invest expecting it to return 736% over the next decade. I would, however, expect it to outperform the overall market over the next decade, with the importance and prominence of big tech growing seemingly daily.
Stefon Walters has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.
