Vanguard tech ETF provides low-cost exposure to AI chip makers
The Vanguard Information Technology ETF (VGT) is heavily weighted toward semiconductor companies, with semiconductors, materials, and equipment making up 42% of the fund and six of its ten largest holdings—Nvidia, Broadcom, Micron Technology, AMD, Intel and Lam Research—accounting for 32.4% of the ETF. By contrast, those same stocks represent only 14.8% of the broader Vanguard S&P 500 ETF (VOO).
Key points
- Semiconductor stocks comprise 42% of Vanguard Tech ETF; six top holdings make up 32.4% of the fund.
- VGT is up 34.8% YTD, far outpacing the S&P 500’s 12% gain; tech sector up 218.1% since 2023.
- Nvidia, Broadcom, Micron, AMD, Intel and Lam Research combined market cap grew from < $1T in 2022 to $10.5T in 2026.
VGT has outperformed the market this year, up 34.8% year‑to‑date versus a 12% gain for the S&P 500, while the tech sector overall has risen 218.1% since the start of 2023. The combined market capitalization of the six leading chip makers has surged from under $1 trillion on Dec. 31 2022 to $10.5 trillion as of Oct. 1 2026.
Analysts note that earnings, not pure speculation, are driving the rally. Nvidia trades at 24.8× forward earnings, still reasonable compared with the S&P 500’s 18.9×. AI data‑center demand remains strong, with Nvidia and AMD supplying rack‑scale systems and Broadcom lending up to $42 billion to Anthropic. The ETF’s expense ratio is only 0.09%, or $9 per $10,000 invested, making it a cost‑effective way for investors to tap AI‑driven semiconductor growth.
The story so far
5 episodes →- Vanguard tech ETF provides low-cost exposure to AI chip makersthis story
Meet the Low-Cost Vanguard ETF With 32.4% Invested in Nvidia, Broadcom, Micron, AMD, Intel, and Lam Research, While VOO Has Just 14.8%.
fool.com · 4 October 2026
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