Designed to provide broad exposure to the Technology - Broad segment of the equity market, the Vanguard Information Technology Index Fund ETF Shares (VGT Quick QuoteVGT - Free Report) is a passively managed exchange traded fund launched on January 26, 2004.

Retail and institutional investors increasingly turn to passively managed ETFs because they offer low costs, transparency, flexibility, and tax efficiency; these kind of funds are also excellent vehicles for long term investors.

Investor-friendly, sector ETFs provide many options to gain low risk and diversified exposure to a broad group of companies in particular sectors. 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 $139.31 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

When considering an ETF's total return, expense ratios are an important factor, and cheaper funds can significantly outperform their more expensive counterparts in the long term if all other factors remain equal.

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 0.45%.

Sector Exposure and Top Holdings

Even though ETFs offer diversified exposure which minimizes single stock risk, it is still important to look into a fund's holdings before investing. Luckily, 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 18.52% of total assets, followed by Apple Inc (AAPL) and Microsoft Corp (MSFT).

Performance and Risk

So far this year, VGT return is roughly 22.43%, and is up about 43.09% in the last one year (as of 06/25/2026). During this past 52-week period, the fund has traded between $82.055 and $125.77.

The ETF has a beta of 1.34 and standard deviation of 23.68% for the trailing three-year period, making it a medium risk choice in the space. With about 320 holdings, it effectively diversifies company-specific risk.

Alternatives

Vanguard Information Technology Index Fund ETF Shares 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 $24.28 billion in assets, State Street Technology Select Sector SPDR ETF has $118.38 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.