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Vanguard’s Tech ETF Tops QQQ Over 10 Years, With Bigger Single-Stock Exposure

Lower fees combined with Nvidia-fueled gains explain VGT’s edge.

Overview

  • Over the past decade, VGT returned roughly 616% versus 468% for QQQ, equating to average annual returns of about 21.8% and 19%, respectively.
  • Nvidia, Microsoft, Apple, and Broadcom rank among the largest positions in both funds, with Nvidia’s surge helping drive VGT’s recent outperformance.
  • VGT tracks the MSCI US Investable Market Information Technology 25/50 Index, yet remains top‑heavy as its three largest holdings make up nearly 44% and Nvidia alone exceeds 17%.
  • QQQ mirrors the Nasdaq-100 and is not a pure tech fund, with technology accounting for just over 60%, while VGT holds more than 300 information‑technology names.
  • Fees differ meaningfully over time: VGT charges 0.09% versus 0.20% for QQQ, a gap that models show could cost an investor contributing $500 monthly more than $4,200 extra in 20 years with QQQ.