VGT US

VGT ETF: A Guide to Vanguard Information Technology Index Fund ETF Shares

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Overview

Vanguard Information Technology Index Fund ETF Shares (VGT) offers Australian investors access to a US technology-focused share portfolio through a US-listed ETF. Its strong reported returns sit alongside a concentrated portfolio: the ten largest holdings make up more than three-fifths of assets, led by NVIDIA, Apple and Microsoft. Both features matter when considering what drives the fund’s performance and risk.

Category

VGT provides concentrated exposure to the US information technology sector, covering large, mid-sized and smaller companies. Its holdings include semiconductor manufacturers and equipment firms, software companies, and technology hardware and services businesses. The fund’s narrow sector remit means it will not provide balanced exposure across the broader sharemarket.

The portfolio spans major parts of the technology industry, including semiconductor companies, software businesses, hardware makers and technology services providers. That breadth within the sector does not remove the fund’s dependence on the fortunes and market valuations of US technology companies.

 

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Key facts

Ticker
VGT
Exchange
US
ISIN
US92204A7028
Provider
Vanguard
Domicile
United States
Currency
USD
Inception date
2004-01-26
Use of income
NA
UCITS
No
Holdings count
49

Costs

TER
0.10%
Net expense ratio
0.10%
AUM
158.0B

The supplied net expense ratio is 0.1%. The displayed dividend yield is 0.379%; distributions and yield can change, and neither is guaranteed.

Performance

YTD
37.7%
1 year
34.7%
3 years
35.2%
5 years
21.4%
10 years
25.7%
Dividend yield
0.38%
Top 10 concentration
61.9%

Holdings

  1. NVIDIA Corporation17.53%
    Ticker
    NVDA
    Sector
    Technology
    Country
    United States

  2. Apple Inc.15.23%
    Ticker
    AAPL
    Sector
    Technology
    Country
    United States

  3. Microsoft Corporation11.03%
    Ticker
    MSFT
    Sector
    Technology
    Country
    United States

  4. Broadcom Inc4.71%
    Ticker
    AVGO
    Sector
    Technology
    Country
    United States

  5. Micron Technology Inc4.03%
    Ticker
    MU
    Sector
    Technology
    Country
    United States

  6. Advanced Micro Devices Inc2.96%
    Ticker
    AMD
    Sector
    Technology
    Country
    United States

  7. Cisco Systems Inc1.64%
    Ticker
    CSCO
    Sector
    Technology
    Country
    United States

  8. Palantir Technologies Inc.1.63%
    Ticker
    PLTR
    Sector
    Technology
    Country
    United States

  9. Intel Corporation1.60%
    Ticker
    INTC
    Sector
    Technology
    Country
    United States

  10. Lam Research Corp1.53%
    Ticker
    LRCX
    Sector
    Technology
    Country
    United States

Weights are percentages of the fund; bars use a 0–100% scale. Displayed entries may not cover the whole portfolio.

VGT’s portfolio is heavily weighted to technology, with 98.259% of equity exposure classified in that sector. Its largest holdings are NVIDIA (17.531%), Apple (15.227%) and Microsoft (11.033%), followed by Broadcom and Micron. The ten largest positions together represent 61.892% of assets, so the results of a relatively small group of companies can have a substantial influence on the fund.

Regions

  • North America94.6%

  • Asia Emerging0.3%

  • Latin America0.2%

  • Asia Developed0.1%

  • Japan0.0%

  • Australasia0.0%

  • United Kingdom0.0%

  • Europe Emerging0.0%

  • Europe Developed0.0%

  • Africa/Middle East0.0%

Weights are percentages of the fund; bars use a 0–100% scale. Displayed entries may not cover the whole portfolio.

Asset allocation

  • Stock US99.7%

  • Stock non-US0.5%

  • Cash0.3%

  • Other0.0%

  • Bond0.0%

  • NotClassified0.0%

Weights are percentages of the fund; bars use a 0–100% scale. Displayed entries may not cover the whole portfolio.

Sectors

  • Technology98.3%

  • Financial Services0.3%

  • Industrials0.3%

  • Consumer Cyclicals0.1%

  • Basic Materials0.0%

  • Energy0.0%

  • Utilities0.0%

  • Healthcare0.0%

  • Real Estate0.0%

  • Consumer Defensive0.0%

Weights are percentages of the fund; bars use a 0–100% scale. Displayed entries may not cover the whole portfolio.

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Risks

Who it may suit

VGT may interest investors seeking focused exposure to US information technology companies and who are comfortable with sector concentration, substantial exposure to a few large holdings and US-dollar investment risk. It is not a diversified, whole-market holding.

Key risks

The fund is sector-focused rather than broadly diversified, and its large positions in NVIDIA, Apple and Microsoft create meaningful single-company concentration. Technology shares can be sensitive to changing growth expectations, competition, business cycles and shifts in market valuations. For Australian investors, US-dollar exposure adds currency risk: returns in Australian dollars can differ from the fund’s US-dollar performance. Past returns do not guarantee future results.

FAQ

What does VGT invest in?

VGT focuses on US information technology companies, spanning areas such as semiconductors, software, hardware and technology services.

How concentrated is the portfolio?

Its ten largest holdings account for 61.892% of assets. NVIDIA, Apple and Microsoft are the three largest positions.

What should Australian investors consider?

VGT trades in US dollars and focuses on US technology shares, so its performance may also be affected by movements in the Australian dollar against the US dollar. The fund’s sector focus and large-company positions can also make returns more sensitive to technology-sector conditions.

*This content is aimed to provide general information only, and does not take your personal objectives, financial situation or needs into account.

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