Vanguard Information Technology ETF: A Great Low-Cost Compounder (NYSEARCA:VGT)

Introduction

The Vanguard Technology ETF (VGT) is a very popular vanguard technology fund that tracks the market-cap-weighted MSCI US Investable Market Information Technology 25/50 Index. The ETF holds information technology companies and has a very strong performance track record. The fund charges a very low fee for a tech-based ETF at just 0.10%. The ETF has over $35 billion in assets under management and holds over 300 positions, making it substantially more diversified than most competing technology ETFs.

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Portfolio Construction and Holdings

VGT is a technology ETF, so it’s no surprise that the Software & IT Services sector makes up around 51% of the fund. Of course, other technology sectors like computers & phones, and semiconductors also dominate the fund coming in at around a 40% weighting. Finally, the fund holds a few companies from multiple sectors like communications, electronics, and even some machinery & equipment, renewables, and

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