Vanguard Information Technology Index Fund ETF: A Surprisingly Valuable Tech ETF Worth Considering

Vanguard Information Technology Index Fund ETF (VGT) has $114.89 billion in assets under management, making it one of the largest tech ETFs on the market. Despite recent market fluctuations, the fund is a "buy and hold" investment, according to Jonathan Kitchen. VGT offers surprising value and is resilient to market volatility, providing a stable investment option for those looking to invest in the tech sector.

Title: Vanguard Information Technology Index Fund ETF (VGT) - A Resilient Tech Investment

Vanguard Information Technology Index Fund ETF (VGT) has garnered significant attention due to its substantial assets under management, currently standing at $114.89 billion. This makes it one of the largest tech ETFs in the market. Despite recent market fluctuations, the fund remains a strong candidate for long-term investment, as per Jonathan Kitchen's analysis. Kitchen upgraded his rating on VGT from a hold to a long-term buy, citing robust fundamentals and consistent performance [2].

The tech sector has been a standout performer, driven by innovation, strong earnings, and transformative shifts in global operations. VGT, with its broad exposure to the tech industry, offers investors a diversified and resilient investment option. The fund is heavily weighted towards major tech stocks, with Nvidia (NVDA), Microsoft (MSFT), and Apple (AAPL) making up approximately 45% of its holdings [2]. This diversification helps mitigate risk and provides a stable investment option.

The fund's performance has been impressive, with a 35% increase since the market's emergence from the tariff lows in late April. Over the past five years, VGT has seen a 126% gain, compared to the S&P 500's 88% growth. This consistent outperformance underscores the fund's value proposition [2].

Investors should note that while the tech sector's valuations remain high, the underlying fundamentals are strong. The sector has seen significant revenue growth and free cash flow generation, with major players like Nvidia, Microsoft, and Apple leading the charge. Nvidia, in particular, has seen remarkable growth, with its stock nearly doubling since its early April lows. The company's market share in AI chips and GPUs is dominant, and it expects data center capital expenditures to rise significantly over the next few years [2].

Microsoft and Apple have also shown strong earnings and growth, with Microsoft's Azure cloud segment thriving and Apple's commitment to U.S. production and investment. These companies' high operating cash flows and consistent revenue growth make them attractive long-term investments [2].

Despite the recent market volatility and ongoing economic uncertainty, the tech sector has remained robust. The sector's ability to withstand market fluctuations and continue to grow makes it an attractive option for long-term investors. VGT's broad exposure to the tech sector and its track record of strong performance make it a compelling choice for investors seeking a stable and resilient tech investment.

References:
[1] https://www.marketscreener.com/news/lazard-reports-july-2025-assets-under-management-ce7c5ed3d08ef027
[2] https://seekingalpha.com/article/4812726-vgt-cant-be-rattled-surprising-value-buy-and-dont-look-back
[3] https://www.usatoday.com/story/money/2025/08/10/tech-stocks-to-buy-nvidia/85599273007/