Vanguard Information Technology ETF

What Vanguard Information Technology ETF does

Vanguard Information Technology ETF (VGT) is a U.S.-registered exchange-traded fund launched in 2004 and managed by The Vanguard Group, Inc. It tracks the MSCI US Investable Market Information Technology 25/50 Index under a core licensing partnership with MSCI, providing passive, market-cap-weighted exposure to large-, mid-, and small-cap U.S. technology equities. The fund holds approximately 310 to 329 stocks across semiconductors, software, and hardware, with significant concentration in mega-cap names — Nvidia (~17%), Apple (~14-16%), and Microsoft (~8-10%) account for roughly 44% of assets, and semiconductor exposure totals approximately 47.9%.

The fund trades on NYSE Arca under ticker VGT and operates as a single-product, passively managed vehicle with no active sales force. Distribution is commission-free through Vanguard's own brokerage and across all major third-party platforms including Schwab, Fidelity, E*TRADE, and JPMorgan, making it accessible to retail investors, institutional asset managers, and retirement account holders alike. The fund charges a flat 0.09% annual expense ratio — among the lowest in the technology-ETF category and roughly one-fifth the industry average of 0.44%.

VGT generates revenue entirely through expense-ratio fees applied to its $160.2 billion in assets under management, yielding approximately $144 million in annualized gross fee income. Customer concentration is extremely low: thousands of retail holders and dozens of institutional buyers access the fund through standard brokerage channels. The fund executed an 8-for-1 share split on April 21, 2026, reducing the share price from $668.70 to below $100 to broaden retail accessibility. VGT has delivered 21% annualized returns over 20 years, 25.4% over 10 years, 39.8% over 1 year, and 27% YTD in 2026, with analyst consensus rating it a 'Strong Buy' and price targets implying 28-37% upside.

Name

Vanguard Information Technology ETF

Legal name

Vanguard Information Technology ETF

Website

https://vanguard.com

Company type

Public

Founded year

2004

Operating status

Operating

Short description

Vanguard Information Technology ETF (VGT) is a passive U.S.-listed ETF tracking the MSCI US Investable Market Information Technology 25/50 Index, serving retail, institutional, and retirement-account investors with low-cost, diversified exposure to approximately 310 U.S. technology stocks at a 0.09% expense ratio.

Ownership category

akta.pro rank

Product category

Exchange-Traded Funds (Sector ETFs)

NAICS

Portfolio Management and Investment Advice (523940), Open-End Investment Funds (525910)

akta.pro primary industry

Broad Market Equity ETFs (FSAAAFAA)

Keywords

• Passive index ETF
• Technology sector exposure
• Sector-focused investing
• ETF fund management
• Equity index tracking

GTM type

B2C

Offering type

Services

Cost components

Operations, Technology or R&D, Infrastructure

Revenue model

1. Expense Ratio Fees: The ETF generates revenue through an annual expense ratio of 0.09% applied to assets under management. As a passive index fund, the expense ratio represents the primary revenue stream, deducted proportionally from investor holdings. With approximately $160.2 billion in AUM, the fund generates substantial management fee income at extremely low cost ratios typical of Vanguard's indexed products.

Pricing tiers

Go-to-market motion1 record

Distribution channels4 records

Marketing channels4 records

Core offering

The Vanguard Information Technology ETF (VGT) is a passive, market-cap-weighted exchange-traded fund that tracks the MSCI US Investable Market Information Technology 25/50 Index. The fund holds approximately 310-329 large-, mid-, and small-cap U.S. technology stocks, providing diversified exposure to the U.S. information technology sector. VGT trades on NYSE Arca under ticker VGT with a 0.09% expense ratio and approximately $160.2 billion in assets under management.

Product overview

The Vanguard Information Technology ETF (VGT) is a single, passively managed exchange-traded fund that tracks the MSCI US Investable Market Information Technology 25/50 Index. The fund holds approximately 310-329 U.S. technology stocks with heavy concentration in mega-cap semiconductor and software companies. Top holdings include Nvidia (~17%), Apple (~15%), Microsoft (~9-13%), Broadcom, Micron, and AMD. VGT trades on NYSE Arca with an expense ratio of 0.09% and approximately $160 billion in assets under management. It is often compared against competing technology ETFs such as State Street's XLK (Technology Select Sector SPDR) and Invesco's QQQ (Nasdaq-100).

Differentiator

Problem solved

Functional benefit

Products and services

• Vanguard Information Technology ETF (VGT) The Vanguard Information Technology ETF (VGT) is a market-cap-weighted passive index ETF that tracks the MSCI US Investable Market Information Technology 25/50 Index. The fund holds approximately 310-329 U.S. technology stocks across large-, mid-, and small-cap segments, including mega-cap leaders such as Nvidia, Apple, Microsoft, Broadcom, Micron, and AMD. VGT charges a 0.09% annual expense ratio, trades on NYSE Arca, and is designed for retail and institutional investors seeking diversified, low-cost U.S. technology sector exposure.

Quantifiable outcome

• $10,000 invested 20 years ago would be worth approximately $205,000-$450,000 (depending on calculation methodology)
• +3 more outcomes

Named customers4 records

Segments3 records

Ideal customer profiles3 records

Technology focussed No

API detail

Has API

No

API docs

API detail

Core technology

AI maturity

App detail

Partnerships

One partnership is on record.

• MSCI Inc.coreTechnology or IntegrationVGT tracks the MSCI US Investable Market Information Technology 25/50 Index, licensed from MSCI. This index licensing agreement provides the fund's benchmark methodology, determining portfolio composition based on market-cap weighting of U.S. technology stocks. The partnership is fundamental to the fund's investment strategy and performance characteristics.

Scale indicators7 records

Recent moves7 records

Expansion highlights4 records

Direct peers

• Invesco QQQ Trust: Invesco QQQ (QQQ) tracks the Nasdaq-100 Index with heavy tech concentration, making it VGT's most direct competitor for technology and growth-oriented investor dollars. VGT explicitly cites QQQ's 0.20% expense ratio as a benchmark undercut by its 0.09%.
• State Street Technology Select Sector SPDR Fund (XLK): State Street's XLK is the primary direct competitor for U.S. technology sector exposure, holding 73 stocks versus VGT's 310. VGT markets itself on broader diversification and equal-or-better performance versus XLK.
• Fidelity MSCI Information Technology Index ETF (FTEC): Fidelity's FTEC tracks the MSCI USA IMI Information Technology Index, the same index family as VGT. It is a near-identical competitor differentiated primarily by Fidelity's distribution platform versus Vanguard's.
• iShares U.S. Technology ETF (IYW): iShares IYW tracks the Dow Jones U.S. Technology Index, providing a competing market-cap-weighted U.S. tech sector ETF. It competes directly with VGT for investor flows in the low-cost U.S. tech ETF category.

Emerging players

• Invesco S&P 500 Pure Technology ETF (RYM): Invesco RYM isolates technology pure plays from the S&P 500 with no non-tech exposure, appealing to investors who want VGT-like sector purity with a different index methodology and weighting approach.
• First Trust NASDAQ-100 Equal Weighted Index Fund (QQEW): First Trust's QQEW applies equal weighting to Nasdaq-100 holdings, contrasting with VGT's market-cap weighting. It attracts investors concerned about mega-cap concentration risk in cap-weighted tech ETFs.
• VanEck Semiconductor ETF (SMH): VanEck's SMH is the largest semiconductor-focused ETF and overlaps meaningfully with VGT's ~48% semiconductor allocation. It is the dominant choice for investors wanting pure-play chip-cycle exposure.
• iShares Semiconductor ETF (SOXX): iShares SOXX offers concentrated semiconductor exposure, the sub-segment comprising nearly 48% of VGT's portfolio. It competes for investors seeking to amplify their tech allocation toward the AI chip theme.
• iShares Global Tech ETF (IXN): iShares IXN provides global technology exposure rather than VGT's U.S.-only focus. It appeals to investors seeking international tech diversification and competes for cross-border tech-allocation capital.

Broad incumbents

• BlackRock (iShares parent): BlackRock is the largest ETF sponsor globally through iShares, with multiple overlapping U.S. and global tech ETFs (IYW, IXN, SOXX). It is the dominant incumbent in the ETF industry against which VGT's parent Vanguard competes.

Market position

Strengths5 records

Weaknesses4 records

Competitive moat4 records

Key risks5 records

Key highlights7 records

Customer concentration

• Xtwitter.com/vanguardgroup
• YouTubeyoutube.com/vanguard
• Facebookfacebook.com/vanguard
• LinkedInlinkedin.com/company/vanguard
• Instagraminstagram.com/vanguard_group

Revenue estimate

Valuation estimate

Number of profiles

Funding overview

Funding rounds

Investors

Funding detail is available on the Subscription and Enterprise plan.Contact sales →

M&A

Investments

M&A and investment is available on the Subscription and Enterprise plan.Contact sales →

Frequently asked questions about Vanguard Information Technology ETF