Vanguard Information Technology ETF Outperforms S&P 500 ETF
In the long term ETFs (Exchange-Traded Funds) that hold growth-oriented information technology stocks have tended to outperform ETFs that hold a mix of diversified growth and non-growth stocks. Such is the case for the Vanguard Information Technology ETF (VGT), which holds 318 information technology stocks.
As the chart below shows, VGT has consistently outperformed the SPDR® S&P 500® ETF Trust (SPY), which holds all S&P 500 stocks. The chart assumes that a $1,000 one-time investment was made in each ETF in February 2004 - VGT's inception date was January 26, 2004. As of August 30, 2024, the value of VGT is $14,566 (13.90% annualized return) and the value of SPY is $7,236 (!0.09% annualized return). These values assume all dividends were reinvested.
See Vanguard Growth ETF Outperforms S&P 500 ETF.
See Vanguard S&P 500 Growth ETF Outperforms S&P 500 ETF.
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Posted September 4, 2024