If you're interested in broad exposure to the Technology - Broad segment of the equity market, look no further than the Vanguard Information Technology ETF (VGT Quick QuoteVGT - Free Report) , a passively managed exchange traded fund launched on January 26, 2004.

While an excellent vehicle for long term investors, passively managed ETFs are a popular choice among institutional and retail investors due to their low costs, transparency, flexibility, and tax efficiency.

Sector ETFs also provide investors access to a broad group of companies in particular sectors that offer low risk and diversified exposure. Technology - Broad is one of the 16 broad Zacks sectors within the Zacks Industry classification. It is currently ranked 1, placing it in top 6%.

Index Details

The fund is sponsored by Vanguard. It has amassed assets over $112.16 billion, making it the largest ETF attempting to match the performance of the Technology - Broad segment of the equity market. VGT seeks to match the performance of the MSCI US Investable Market Information Technology 25/50 Index before fees and expenses.

The MSCI US Investable Market Information Technology 25/50 Index is designed to transition in and out of securities affected by pending updates to the information technology sector.

Costs

Investors should also pay attention to an ETF's expense ratio. Lower cost products will produce better results than those with a higher cost, assuming all other metrics remain the same.

Annual operating expenses for this ETF are 0.09%, making it one of the least expensive products in the space.

It has a 12-month trailing dividend yield of 0.41%.

Sector Exposure and Top Holdings

It is important to delve into an ETF's holdings before investing despite the many upsides to these kinds of funds like diversified exposure, which minimizes single stock risk. And, most ETFs are very transparent products that disclose their holdings on a daily basis.

This ETF has heaviest allocation in the Information Technology sector -- about 100% of the portfolio.

Looking at individual holdings, Nvidia Corp (NVDA) accounts for about 18.18% of total assets, followed by Apple Inc (AAPL) and Microsoft Corp (MSFT).

Performance and Risk

Year-to-date, the Vanguard Information Technology ETF return is roughly 21.62% so far, and is up about 18.76% over the last 12 months (as of 12/15/2025). VGT has traded between $470.37 and $801.52 in this past 52-week period.

The ETF has a beta of 1.26 and standard deviation of 23.01% for the trailing three-year period, making it a medium risk choice in the space. With about 317 holdings, it effectively diversifies company-specific risk.

Alternatives

Vanguard Information Technology ETF holds a Zacks ETF Rank of 1 (Strong Buy), which is based on expected asset class return, expense ratio, and momentum, among other factors. Because of this, VGT is a great option for investors seeking exposure to the Technology ETFs segment of the market. There are other additional ETFs in the space that investors could consider as well.

iShares U.S. Technology ETF (IYW) tracks Dow Jones U.S. Technology Index and the State Street Technology Select Sector SPDR ETF (XLK) tracks Technology Select Sector Index. iShares U.S. Technology ETF has $20.89 billion in assets, State Street Technology Select Sector SPDR ETF has $93.06 billion. IYW has an expense ratio of 0.38%, and XLK charges 0.08%.

Bottom Line

To learn more about this product and other ETFs, screen for products that match your investment objectives and read articles on latest developments in the ETF investing universe, please visit Zacks ETF Center.