VGT ETF: What Is It? Returns, Expense Ratio, Holdings, and Alternative ETFs at a Glance
Vanguard Information Technology ETF (VGT) is a core sector holding that broadly diversifies across big tech in the US IT sector, with an ultra-low expense ratio and quarterly dividends as its strengths. Differences in index, holdings, and AUM versus XLK, SOXX, FTEC, and IYW are the key selection criteria.
SubscribeWhat Is the Vanguard Information Technology ETF?
It is a passive ETF managed by Vanguard that tracks the MSCI US IT sector index. It provides market-cap-weighted, automatically diversified exposure across the US IT sector, including software, hardware, semiconductors, payments, and IT services.
It suits long-term investors who want concentrated exposure to the US IT sector, as well as asset allocation investors who want to add a separate IT sector weighting.
It is an ETF run by Vanguard using a passive (index-tracking) management approach.
How Do You Invest in the Vanguard Information Technology ETF?
| Item | Details |
|---|---|
| Tracking index | MSCI US IT sector index |
| Management style | Passive (index tracking) |
| Sector | Information Technology (IT) |
| Dividend frequency | Quarterly dividends |
| Total expense ratio | 0.09% |
| Manager | Vanguard |
The fund holds US information technology sector stocks under the GICS classification, weighted by market capitalization. Its classification of some payments stocks and internet services stocks differs slightly from XLK, and it structurally offers broader diversification with a larger number of holdings than XLK.
- Broad diversification across the IT sector on an MSCI basis
- A larger number of holdings than XLK
- An ultra-low-cost sector ETF in Vanguard's lineup
Size and Costs of the Vanguard Information Technology ETF (AUM and Expense Ratio)
Assets under management (AUM) stand at $145.0B, and the total expense ratio is 0.09% per year.
Like XLK shown in the table, it is classified as an information technology sector ETF, but because the tracking index differs (MSCI vs S&P GICS), the number of holdings and the classification of payments and internet stocks are different. SOXX is a variant concentrated in semiconductors and IGV is one concentrated in software, so their exposure is narrower.
Performance and Trends of the Vanguard Information Technology ETF
1-Year Price Performance
Dividend & Yield
52-Week Price RangeDuring periods of strong AI, semiconductor, and software momentum, it posted gains that stood out against core ETFs, while in rising-rate and tech-correction cycles it showed large volatility.
It belongs to the group of mega-sector ETFs that attract strong demand for tech exposure and see notable inflows when AI and semiconductor momentum is strong. Demand from investors who add an IT weighting separately within their asset allocation also contributes to inflows.
Pros and Cons of the Vanguard Information Technology ETF
Its main strengths are an ultra-low expense ratio and broad diversification across the US IT sector, while volatility from sector concentration and a heavy tilt toward big tech are drawbacks to consider in advance.
💪 Key Strengths
⚠️ Points to Watch
Alternative ETFs and Related Products to the Vanguard Information Technology ETF
XLK, shown in the table, is a direct substitute that tracks the IT sector on a GICS basis but classifies stocks differently. FTEC is a variant tracking the same MSCI IT index, IYW tracks broad IT, SOXX is concentrated in semiconductors, and IGV is concentrated in software. For broad tech and growth exposure, you can also consider QQQ and QQQM; for pure semiconductor exposure, SMH; and for an AI and robotics theme, variants such as BOTZ.
Peer Comparison ETFs| Ticker | Name | Price | Change | AUM | Total Expense Ratio | Dividend Yield | 1Y |
|---|---|---|---|---|---|---|---|
 XLK | State Street Technology Select Sector SPDR ETF | $174.22 | -3.0% | $118.7B | 0.08% | 0.48% | +15.9% |
 SOXX | iShares Semiconductor ETF | $453.65 | -3.8% | $44.7B | 0.33% | 0.28% | +48.0% |
 IYW | iShares U.S. Technology ETF | $236.45 | -2.6% | $23.8B | 0.37% | 0.1% | +13.7% |
 FTEC | Fidelity MSCI Information Technology Index ETF | $271.58 | -2.7% | $20.8B | 0.08% | 0.41% | +14.8% |
 IGV | iShares Expanded Tech-Software Sector ETF | $101.90 | -2.3% | $13.1B | 0.38% | 0.02% | -11.8% |
Top Holdings| Ticker | Name | Weight | Price | Change | Market Cap | P/E | Dividend Yield |
|---|---|---|---|---|---|---|---|
| NVDA | NVIDIA Corp | 0.52% | $202.06 | -1.3% | $4.87T | 25.5 | 0.39% |
| AAPL | Apple Inc | 0.45% | $338.32 | -1.8% | $4.94T | 38.8 | 0.34% |
| MSFT | Microsoft Corp | 0.31% | $507.12 | -2.8% | $3.77T | 26.5 | 0.76% |
| AVGO | Broadcom Inc | 0.04% | $322.23 | -1.2% | $1.54T | 41.1 | 0.81% |
Investor Checkpoints for the Vanguard Information Technology ETF
Here are the points to check before investing in VGT. Broad diversification across the US IT sector is its strength, but it is advisable to double-check sector concentration volatility, the big tech tilt, and currency effects before buying, and to review your position size and diversification strategy at the same time.
| Checkpoint | What to check | Current status |
|---|---|---|
| 💵 Expense ratio | Check the impact of cumulative long-term costs | Among the lowest |
| 📈 Sector exposure | Weight of the single IT sector | Concentrated exposure |
| 📊 Big tech weight | Concentration in top holdings | Very high |
| 💱 Exchange rate | Impact on returns converted to won | Not currency hedged |
Sector concentration volatility, the big tech tilt, and exchange rate fluctuations are the main drivers of short-term volatility. In rising-rate and tech-correction cycles, drawdowns can be larger than those of core ETFs, so it is worth reviewing your position size and diversification strategy together.
It is regarded as a standard choice for a core holding with broad diversification across the US IT sector. If you prefer a GICS-based classification, XLK is a suitable variant; for pure semiconductor exposure, SMH; and for broad tech and growth exposure, QQQ.
SubscribeDisclaimer: This content is for informational purposes only and does not constitute investment advice. All investment responsibility lies with the investor.
This article reflects information as of May 21, 2026.
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