If You'd Thrown $10,000 at This Vanguard Tech ETF 10 Years Ago, Here's the Jaw-Dropping Amount You'd Have Now

• The Vanguard Information Technology ETF has much than doubled the S&P 500's 10-year returns.

• It invests successful implicit 300 tech stocks and charges a debased yearly interest of 0.09%.

• 10 stocks we similar amended than Vanguard Information Technology ETF ›

Tech exchange-traded funds (ETFs) are a bully mode to get wide vulnerability to the tech sector. The Vanguard Information Technology ETF (NYSEMKT: VGT) is the largest by assets nether absorption (AUM), arsenic of Jan. 9, and it has performed highly good implicit the past decade.

Just however good has it done? To find out, we tin look astatine however overmuch a tenable concern successful this Vanguard ETF would've returned.

If you'd enactment $10,000 into the Vanguard Information Technology ETF 10 years ago, you'd present person $83,310. For perspective, the aforesaid magnitude invested successful the S&P 500 index would've turned into $43,090. This Vanguard tech ETF has much than doubled the market's return, arsenic measured by the S&P 500.

The superior crushed for those market-beating returns is this ETF's tech focus. The tech assemblage has importantly outperformed the broader marketplace implicit the past decade, peculiarly successful caller years with the emergence of artificial quality (AI). The Vanguard Information Technology ETF presently invests successful 322 tech companies, with Nvidia, Microsoft, Broadcom, and Palantir Technologies being among its largest holdings.

Low fees are the different cardinal constituent successful this ETF's success. Vanguard is known for charging rock-bottom fees, and that's the lawsuit here, arsenic this ETF has an disbursal ratio of conscionable 0.09%. For each $10,000 you invest, you wage conscionable $9 successful yearly fees.

The downside to the tech assemblage is that it's besides much volatile than the broader market. Bear markets volition often origin steeper drops successful tech-heavy portfolios. If you're consenting to thrust retired volatility, and you'd similar to adhd hundreds of tech stocks to your portfolio successful a azygous investment, the Vanguard Information Technology ETF is worthy a look.

Before you bargain banal successful Vanguard Information Technology ETF, see this:

The Motley Fool Stock Advisor expert squad conscionable identified what they judge are the 10 champion stocks for investors to bargain now… and Vanguard Information Technology ETF wasn’t 1 of them. The 10 stocks that made the chopped could nutrient monster returns successful the coming years.

Consider erstwhile Netflix made this database connected December 17, 2004... if you invested $1,000 astatine the clip of our recommendation, you’d person $482,451!* Or erstwhile Nvidia made this database connected April 15, 2005... if you invested $1,000 astatine the clip of our recommendation, you’d person $1,133,229!*