VGT - ETF AI Analysis
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Vanguard Information Technology ETF (VGT)
VGT, the Vanguard Information Technology ETF, earns a solid overall rating thanks to heavy exposure to leaders like Apple, Microsoft, and Nvidia, whose strong financial performance, growth in AI and cloud, and positive earnings outlooks support the fund’s quality. Smaller positions in names like Intel and Palantir add some risk due to valuation and profitability concerns, and the fund is heavily concentrated in the technology sector, which can make it more sensitive to tech-specific downturns.
VGT vs. SPDR S&P 500 ETF (SPY)
- AUM
- 151.55B
- Region
- North America
- Expense Ratio
- 0.09%
- Beta
- 1.50
- Issuer
- Vanguard
- Inception Date
- Jan 26, 2004
- Dividend Yield
- 0.40%
- Asset Class
- Equity
- Index Tracked
- MSCI US IMI 25/50 Information Technology
VGT Summary
Vanguard Information Technology ETF (VGT) is a fund that tracks the MSCI US IMI 25/50 Information Technology Index, giving you broad exposure to U.S. tech companies. It holds many well-known names, including Apple and Microsoft, as well as chip makers like Nvidia, all in one investment. Someone might invest in VGT to seek long-term growth from trends like cloud computing and artificial intelligence, while also getting diversification across many tech firms instead of picking single stocks. A key risk is that it is heavily focused on technology, so its price can rise or fall sharply when tech stocks are in or out of favor.
How much will it cost me?
This ETF has an annual expense ratio of 0.09%, which means you’ll pay about $0.90 per year for every $1,000 invested. That’s lower than the average ETF because it’s a passively managed index fund that tracks a technology sector index instead of paying managers to pick individual stocks.
What would affect this ETF?
VGT could benefit if demand for cloud computing, artificial intelligence, and semiconductor chips stays strong, helping major holdings like Nvidia, Apple, and Microsoft, and if a healthy U.S. economy and stable or falling interest rates continue to support growth-focused tech stocks. On the other hand, it could be hurt by higher interest rates, stricter tech regulations, slower corporate tech spending, or a downturn in the U.S. stock market, especially since it is heavily concentrated in the technology sector and a few large companies.
VGT Top 10 Holdings
VGT is essentially riding the Big Tech and chip wave, with Nvidia, Apple, and Microsoft steering the ship. Nvidia and AMD have been rising on AI enthusiasm, giving the fund a strong semiconductor backbone, while Micron’s surge adds extra fuel to that theme. Apple and Microsoft remain steady leaders, helping smooth out volatility even as Broadcom and Lam Research show more mixed, sometimes lagging, momentum. With a heavy U.S. tech and semiconductor tilt, this ETF is a focused bet on America’s digital and AI infrastructure.
| Name | Company Name | Weight % | Market Value | Market Cap | Yearly Gain | Overall Rating |
|---|---|---|---|---|---|---|
 NVDA | Nvidia | 17.59% | $31.37B | $4.93T | 0.86% | 76Outperform |
 AAPL | Apple | 15.92% | $28.39B | $5.03T | 26.98% | 79Outperform |
 MSFT | Microsoft | 11.16% | $19.91B | $3.88T | -0.73% | 79Outperform |
 MU | Micron | 4.46% | $7.95B | $1.00T | 294.96% | 79Outperform |
 AVGO | Broadcom | 4.11% | $7.33B | $1.56T | -13.38% | 76Outperform |
 AMD | Advanced Micro Devices | 3.68% | $6.56B | $824.07B | 98.09% | 73Outperform |
 INTC | Intel | 1.99% | $3.54B | $347.61B | 63.75% | 64Neutral |
 CSCO | Cisco Systems | 1.60% | $2.85B | $411.45B | 43.34% | 77Outperform |
 LRCX | Lam Research | 1.56% | $2.77B | $298.69B | 48.51% | 77Outperform |
 PLTR | Palantir Technologies | 1.55% | $2.76B | $442.43B | -5.37% | 74Outperform |
VGT Technical Analysis
Price Trends
Market Momentum
Evaluating momentum and price trends is crucial in ETF analysis to make informed investment decisions. For VGT, the sentiment is Negative. The current price of 116.96 is below the 20-day moving average (MA) of 123.39, below the 50-day MA of 122.42, and above the 200-day MA of 109.19, indicating a neutral trend. The MACD of -0.95 indicates Positive momentum. The RSI at 37.65 is Neutral, neither overbought nor oversold. The STOCH value of 62.35 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for VGT.
VGT Peer Comparison
Comparison Results
| Name | Price | Price Target | AUM | Expense Ratio | Overall Rating |
|---|---|---|---|---|---|
| VGT | $116.96 | $134.00(14.57% Upside) | $151.55B | 0.09% | 74Outperform |
 XLK | $179.51 | $240.95(34.23% Upside) | $124.76B | 0.08% | 75Outperform |
 XLF | $56.51 | $63.90(13.08% Upside) | $53.97B | 0.08% | 72Outperform |
 SOXX | $471.51 | $703.34(49.17% Upside) | $47.58B | 0.33% | 71Outperform |
 IYW | $242.67 | $324.16(33.58% Upside) | $24.85B | 0.37% | 75Outperform |
 FTEC | $279.03 | $373.74(33.94% Upside) | $21.73B | 0.08% | 75Outperform |
Performance Comparison
| Show on chart | Ticker | Company Name | Price | Change | % Change |
|---|---|---|---|---|---|
| VGT | Vanguard Information Technology ETF | 116.96 | 17.90 | 18.07% | |
| XLK | Technology Select Sector SPDR Fund | 179.51 | 29.32 | 19.53% | |
| XLF | Financial Select Sector SPDR Fund | 56.51 | 5.17 | 10.07% | |
| SOXX | iShares Semiconductor ETF | 471.51 | 164.12 | 53.39% | |
| IYW | iShares U.S. Technology ETF | 242.67 | 34.12 | 16.36% | |
| FTEC | Fidelity MSCI Information Technology Index ETF | 279.03 | 42.79 | 18.11% |
This AI Analyst ETF Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in ETFs carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.