BetterThanSPY

Relative Intelligence · Technology Equity

How Vanguard Information Technology ETF (VGT) compares with the whole market and its popular alternatives

Built by QuantCommons' quantitative engine, this page is about relative opportunity, not data on VGT alone. It places VGT (Vanguard Information Technology ETF) against 20+ popular alternatives, its neighboring categories and the entire market of over 10,000 U.S.-listed stocks and ETFs, and surfaces what has done better on consistent outperformance, return for the risk taken, behavior in real market crashes and diversification. The result is a clearer view of where VGT stands in the market, and of the alternatives worth a closer look.

Period covered: VGT's full trading record, from January 2004 through September 2026. The crash tests reach back to 2000 using older funds and the S&P 500. All returns include reinvested dividends. Data as of October 22, 2026.

Data as of October 22, 2026. Full tables and charts read best on a larger screen.

Rank the market against VGT →Chart VGT vs. 24 alternatives →

This page answers the following questions about VGT

Key findings

Not AI-generated

These key findings are generated by our proprietary relative intelligence engine, directly from the data on this page.

How much would $10,000 in VGT have grown?

This chart tracks a hypothetical $10,000 investment in VGT over the past 22 years, with dividends reinvested, alongside the same amount in the S&P 500, investments that ended ahead of VGT over the same span and VGT's popular alternatives, among those that traded for the entire period. A second view covers the past 5 years, the period the better options further down the page are judged on. It shows not only where each investment ended up but also how smooth or uneven the path was.

Note: VGT began trading on January 30, 2004, so the chart cannot reach back to the dot-com bust. It covers the most recent 22 years of VGT's record, starting at the end of September 2004.

Choose a period

From the end of September 2004 to the end of September 2026. The scale is logarithmic, so equal steps up the chart are equal percentage gains. Hover over a fund in the key to pick out its line. 116 of the 1,489 stocks and funds worth at least $500 million that traded the whole period ended ahead of VGT; the chart shows 5, closest alternatives first. The other 3 lines are popular alternatives, shown for context.

$10,000$20,000$50,000$100,000$200,000$500,000200420082012201620202024$10,000$100,0002004201020162022
  • SMH$644,463+6,345% total · +20.8% a year
  • SOXX$434,743+4,247% total · +18.7% a year
  • TJX$318,817+3,088% total · +17.0% a year
  • COR$310,520+3,005% total · +16.9% a year
  • MSFT$302,092+2,921% total · +16.8% a year
  • VGT$291,569+2,816% total · +16.6% a year
  • IYW$282,415+2,724% total · +16.4% a year
  • XLK$273,025+2,630% total · +16.2% a year
  • IXN$231,587+2,216% total · +15.4% a year
  • SPY (S&P 500)$102,174+922% total · +11.1% a year
Change the dates or add tickers to this chart in EasyCompare

From the end of September 2021 to the end of September 2026. Hover over a fund in the key to pick out its line. 467 of the 3,630 stocks and funds worth at least $500 million that traded the whole period ended ahead of VGT; the chart shows 5, closest alternatives first. The other 3 lines are popular alternatives, shown for context.

$0$10,000$20,000$30,000$40,000$50,000$60,000202120222023202420252026$0$20,000$40,000$60,000202120222023202420252026
  • CAH$49,682+397% total · +37.8% a year
  • SMH$48,982+390% total · +37.4% a year
  • SOXX$39,747+297% total · +31.8% a year
  • PSI$36,338+263% total · +29.4% a year
  • DXJ$32,976+230% total · +27.0% a year
  • WELL$31,492+215% total · +25.8% a year
  • IHG$26,998+170% total · +22.0% a year
  • EWT$26,805+168% total · +21.8% a year
  • VGT$25,874+159% total · +20.9% a year
  • SPY (S&P 500)$19,000+90.0% total · +13.7% a year
Change the dates or add tickers to this chart in EasyCompare

VGT at a glance

This section summarizes the key facts about the fund, its returns over periods from one to ten years and the risk it has carried, with dividends reinvested throughout. These figures serve as the baseline for every comparison that follows.

Note: VGT began trading on January 30, 2004, so every figure here, including its worst decline, covers only the time since then. None of them reflect the dot-com bust.

The fund

Issuer
Vanguard
Began trading
January 2004
Expense ratio
0.09%per year
Assets
$178B
Category
Technology

Returns

Past 1 year
+26.7%total return
Past 3 years
+135%+33.0% a year
Past 5 years
+130%+18.1% a year
Past 10 years
+753%+23.9% a year
Best calendar year
+61.6%2009
Worst calendar year
−42.8%2008
Losing years
2 of 21full calendar years

Risk

Volatility
26.1%typical yearly swing, 5 years
Sharpe ratio
0.77return per unit of risk, 5 years
Worst decline ever
−54.6%Oct 2007 to Nov 2008
From its all-time high
−8.6%below the peak

VGT against the whole market

Where VGT ranks among every stock and fund, and what across the market has done better.

How does VGT rank among all ETFs?

This section ranks VGT on return, volatility, risk-adjusted return and worst decline against every ETF worth at least $100 million with enough history. Where the comparisons with its popular alternatives show how VGT stacks up against its peers, these rankings show where it stands in the market as a whole.

Ranked against U.S.-listed ETFs with at least $100M in assets that have enough history for each measure, so the count changes from row to row; smaller ETFs and leveraged funds are left out. Lower volatility and smaller declines rank higher.

MeasureVGTRankStanding
1-year return+26.7%229 of 2,488top 9%
3-year return+135%92 of 1,950top 5%
5-year return+130%58 of 1,563top 4%
10-year return+753%8 of 958top 1%
Volatility, 5 years26.1%1,396 of 1,563bottom 12%
Sharpe ratio, 5 years0.77386 of 1,563top 25%
Worst decline, past 10 years−35.1%352 of 951top 37%

What has beaten VGT on both return and risk?

Each dot is an investment, placed by how much it earned a year over the past 5 years (higher is better) and how much its price swung, its volatility (further left is calmer). VGT sits where the dashed lines cross. Anything in the green box above and to the left earned more than VGT with smaller swings, a better trade-off over this period on both counts. Past results are no promise, but a name in the box is worth a closer look.

Annual return is the annualized total return with dividends reinvested, and volatility the annualized swing in daily prices, both over 5 years. Labeled dots are the strongest picks from the table below and the names called out above, colored by how close they sit to VGT; faint dots are 23 more of the 31 in the green region (the strongest, one per fund family). 3,641 stocks and funds worth at least $500 million were screened. Hover over a dot for its figures.

16.0%18.0%20.0%22.0%24.0%26.0%28.0%30.0%10.0%15.0%20.0%25.0%30.0%35.0%40.0%45.0%Volatility over 5 years (annualized)Annual return over 5 yearsMore return, less volatility than VGTPM: +21.3% a year, volatility 23.4%TRV: +22.4% a year, volatility 22.3%MFC: +23.3% a year, volatility 24.0%ACT: +20.7% a year, volatility 24.4%MPLX: +24.0% a year, volatility 18.8%ABBV: +25.5% a year, volatility 23.4%TJX: +19.8% a year, volatility 22.3%BTI: +19.4% a year, volatility 22.0%WMB: +25.2% a year, volatility 24.1%CM: +19.5% a year, volatility 21.6%BNY: +22.8% a year, volatility 24.4%COR: +23.6% a year, volatility 22.8%KMI: +20.1% a year, volatility 22.3%AFL: +19.5% a year, volatility 20.8%ETR: +19.8% a year, volatility 22.4%CCEP: +20.4% a year, volatility 23.3%ACGL: +20.1% a year, volatility 24.5%SDCI: +21.1% a year, volatility 18.4%KOF: +22.4% a year, volatility 24.7%IXC: +20.9% a year, volatility 23.2%DBJP: +20.9% a year, volatility 19.3%CRAK: +19.5% a year, volatility 20.9%ATMP: +21.7% a year, volatility 21.5%VGT: +18.1% a year, volatility 26.1%SPY (S&P 500): +12.5% a year, volatility 17.2%MSFT: +11.9% a year, volatility 28.2%WELL: +27.0% a year, volatility 23.8%CAH: +41.7% a year, volatility 24.7%WMT: +21.1% a year, volatility 22.6%EWT: +19.8% a year, volatility 24.3%NVS: +17.4% a year, volatility 20.7%IHG: +21.7% a year, volatility 26.6%DXJ: +26.6% a year, volatility 19.1%PGR: +21.8% a year, volatility 25.7%VGTSPY (S&P 500)MSFTWELLCAHWMTEWTNVSIHGDXJPGR15.0%17.5%20.0%22.5%25.0%27.5%30.0%10.0%20.0%30.0%40.0%50.0%Volatility over 5 years (annualized)Annual return over 5 yearsMore return, less volatility than VGTPM: +21.3% a year, volatility 23.4%TRV: +22.4% a year, volatility 22.3%MFC: +23.3% a year, volatility 24.0%ACT: +20.7% a year, volatility 24.4%MPLX: +24.0% a year, volatility 18.8%ABBV: +25.5% a year, volatility 23.4%TJX: +19.8% a year, volatility 22.3%BTI: +19.4% a year, volatility 22.0%WMB: +25.2% a year, volatility 24.1%CM: +19.5% a year, volatility 21.6%BNY: +22.8% a year, volatility 24.4%COR: +23.6% a year, volatility 22.8%KMI: +20.1% a year, volatility 22.3%AFL: +19.5% a year, volatility 20.8%ETR: +19.8% a year, volatility 22.4%CCEP: +20.4% a year, volatility 23.3%ACGL: +20.1% a year, volatility 24.5%SDCI: +21.1% a year, volatility 18.4%KOF: +22.4% a year, volatility 24.7%IXC: +20.9% a year, volatility 23.2%DBJP: +20.9% a year, volatility 19.3%CRAK: +19.5% a year, volatility 20.9%ATMP: +21.7% a year, volatility 21.5%VGT: +18.1% a year, volatility 26.1%SPY (S&P 500): +12.5% a year, volatility 17.2%MSFT: +11.9% a year, volatility 28.2%WELL: +27.0% a year, volatility 23.8%CAH: +41.7% a year, volatility 24.7%WMT: +21.1% a year, volatility 22.6%EWT: +19.8% a year, volatility 24.3%NVS: +17.4% a year, volatility 20.7%IHG: +21.7% a year, volatility 26.6%DXJ: +26.6% a year, volatility 19.1%PGR: +21.8% a year, volatility 25.7%VGTSPY (S&P 500)MSFTWELLCAHWMTEWTNVSIHGDXJPGR
  • Same and neighboring categories, and shared themes
  • The whole market
  • Others in the green region

Is there a better investment than VGT?

Investments that beat VGT over the past 5 years on return, volatility, drawdowns, consistency, crash losses or fees, from its popular alternatives out to the whole market.

How this works

The table below lists investments that beat VGT over the past 5 years on at least one of these measures: a higher annual return with lower volatility, a higher annual return at similar volatility, a similar return with lower volatility, a higher Sharpe ratio with a smaller worst decline, a higher total return in most periods from 3 months to 10 years, or smaller losses in recent market crashes, and, for funds, the same exposure at a lower expense ratio. It checks VGT's popular alternatives first, then the rest of its own and neighboring categories, then every stock and fund worth at least $500 million, and shows the strongest few in each group. The full list of those with a higher return and lower volatility than VGT follows the table.

Annual return is the annualized total return with dividends reinvested. Annual return, volatility and the Sharpe ratio cover 5 years; the worst decline covers the past 10 years. Green marks a better figure than VGT's. "On the frontier" means no other option shown or tested earned more with less volatility. Funds that hold the same thing are shown once. Beyond the popular alternatives, nothing with more than 1.5× VGT's volatility counts as better.

These figures cover the past 5 years. Green marks a better figure than VGT's.

Screen the whole market against VGT for any period in BetterThanSPYOpen these 10 in EasyCompare
InvestmentWhy it is betterPast 5 yearsDownsideLong runFit
Annual return?higher is betterVolatility?lower is calmerSharpe?return per unit of riskWorst decline?past 10 years10Y returntotalCorr. with VGT?lower diversifies moreExpenseper year
VGTVanguard Information Technology ETF · this page
+18.1%26.1%0.77−35.1%+753%1.000.09%
SPYState Street SPDR S&P 500 ETF · S&P 500
+12.5%17.2%0.78−33.7%+316%0.900.09%
Same and neighboring categories, and shared themesbest 1 shownEverything else in Technology Equity and the categories next to it (Semiconductors, Artificial Intelligence, Software, US Large-Cap Growth), plus VGT's specific themes. 1 of 256 passed at least one test.
MSFTMicrosoft Corporation · Software
Smaller losses in recent crashes+11.9%28.2%0.54−37.1%+862%0.67—
The whole marketbest 8 shownEvery other stock and fund worth at least $500 million. 122 of 3,391 passed at least one test.
WELLWelltower Inc. · Healthcare REITs
On the frontierHigher return, lower volatilityHigher return in most periods+27.0%23.8%1.13−63.3%+378%0.27—
CAHCardinal Health, Inc. · Health Care Distribution
On the frontierHigher return, lower volatilityHigher return in most periods+41.7%24.7%1.54−46.1%+345%0.16—
WMTWalmart Inc. · Discount Retail
Higher return, lower volatilityHigher Sharpe, smaller worst decline+21.1%22.6%0.97−25.7%+521%0.24—
EWTiShares MSCI Taiwan ETF · International Equity
Higher return, lower volatilityHigher return in most periods+19.8%24.3%0.87−38.9%+448%0.760.59%
NVSNovartis AG · Pharmaceuticals
Similar return, lower volatilityHigher Sharpe, smaller worst decline+17.4%20.7%0.89−26.8%+234%0.11—
IHGInterContinental Hotels Group PLC · Hotels & Resorts
Higher return, similar volatilityHigher return in most periods+21.7%26.6%0.88−59.3%+387%0.55—
DXJWisdomTree Japan Hedged Equity Fund · Japan Equity
On the frontierHigher return, lower volatility+26.6%19.1%1.34−39.1%+415%0.430.48%
PGRThe Progressive Corporation · Property & Casualty Insurance
Higher return, similar volatilitySmaller losses in recent crashes+21.8%25.7%0.90−30.3%+849%-0.06—
What these numbers mean for VGT
Annual return
VGT returned 18.1% a year over the past 5 years with dividends reinvested, against 12.5% a year for the S&P 500. At that pace, $10,000 became about $23,000. Annual return is the steady yearly rate that would produce the same total result, so investments held over the same span compare fairly. Guide: What is performance and return? →
Volatility
VGT's volatility over the past 5 years was 26.1%, 1.5 times the S&P 500's 17.2%. Volatility measures how widely returns swing around their average: in roughly two years out of three, VGT's return lands within 26.1% of its average, either way. The higher it is, the rougher the ride and the harder it is to hold through a slump. Guide: Understanding and measuring risk (volatility) →
Sharpe ratio
VGT's Sharpe ratio over the past 5 years was 0.77, against 0.78 for the S&P 500, so VGT earned less for each unit of risk than an index fund did. The Sharpe ratio is the return earned above cash for each unit of volatility: two investments with the same return are not equal if one got there with far bigger swings. Guide: Balancing reward with risk (Sharpe ratio) →
Worst decline
VGT's worst fall from a peak to a low over the past 10 years was 35.1%, against 33.7% for the S&P 500. Losses and gains are not symmetric: climbing back from a 35.1% fall takes a 54.1% gain. Guide: Market crash risk and tail risk →
Correlation
Over the past 5 years, VGT's monthly returns had a correlation of 0.90 with the S&P 500. Correlation runs from 1 (moving in lockstep) through 0 (unrelated) to −1 (moving in opposite directions). They move almost in lockstep, so holding both adds little diversification. In the table, the correlation column measures each option against VGT instead: the lower it is, the more that option would diversify a VGT holding. Guide: Correlation and diversification →
Show all 31 stocks and funds worth at least $500 million that earned more than VGT with less volatility

Out of 3,641 tested over 5 years. The strongest 28 are listed, best first, with funds that hold the same thing listed once.

#InvestmentFound inAnnual returnVolatilitySharpeWorst decline10Y returnCorr. with VGTExpense
1
WELLWelltower Inc. · Healthcare REITs
Whole market+27.0%23.8%1.13−63.3%+378%0.27—
2
CAHCardinal Health, Inc. · Health Care Distribution
Whole market+41.7%24.7%1.54−46.1%+345%0.16—
3
PMPhilip Morris International Inc. · Tobacco
Whole market+21.3%23.4%0.94−42.9%+240%0.00—
4
WMTWalmart Inc. · Discount Retail
Whole market+21.1%22.6%0.97−25.7%+521%0.24—
5
TRVThe Travelers Companies, Inc. · Property & Casualty Insurance
Whole market+22.4%22.3%1.02−46.3%+360%0.02—
6
MFCManulife Financial Corporation · Life Insurance
Whole market+23.3%24.0%1.00−57.5%+386%0.42—
7
EWTiShares MSCI Taiwan ETF · International Equity
Whole market+19.8%24.3%0.87−38.9%+448%0.760.59%
8
ACTEnact Holdings Inc. · Insurance
Whole market+20.7%24.4%0.90−20.2%—0.14—
9
MPLXMPLX Lp · Oil & Gas Midstream
Whole market+24.0%18.8%1.25−75.2%+337%0.21—
10
ABBVAbbVie Inc. · Specialty Pharmaceuticals
Whole market+25.5%23.4%1.09−45.1%+600%0.01—
11
DXJWisdomTree Japan Hedged Equity Fund · Japan Equity
Whole market+26.6%19.1%1.34−39.1%+415%0.430.48%
12
TJXThe TJX Companies, Inc. · Apparel Retail
Whole market+19.8%22.3%0.93−42.5%+357%0.23—
13
BTIBritish American Tobacco p.l.c. · Tobacco
Whole market+19.4%22.0%0.92−56.1%+110%-0.03—
14
WMBThe Williams Companies, Inc. · Oil & Gas Midstream
Whole market+25.2%24.1%1.06−68.1%+291%0.20—
15
CMCanadian Imperial Bank of Commerce · Banks
Whole market+19.5%21.6%0.94−47.3%+409%0.48—
16
BNYBank of New York Mellon Corp · Banks
Whole market+22.8%24.4%0.97−50.5%+332%0.47—
17
CORCencora, Inc. · Health Care Distribution
Whole market+23.6%22.8%1.05−32.4%+403%0.10—
18
KMIKinder Morgan, Inc. · Oil & Gas Midstream
Whole market+20.1%22.3%0.94−55.1%+159%0.20—
19
AFLAflac Incorporated · Life Insurance
Whole market+19.5%20.8%0.97−54.9%+344%0.14—
20
ETREntergy Corporation · Electric Utilities
Whole market+19.8%22.4%0.92−42.0%+326%0.16—
21
CCEPCoca-Cola Europacific Partners PLC · Food & Beverages
Whole market+20.4%23.3%0.92−48.8%+294%0.15—
22
ACGLArch Capital Group Ltd. · Property & Casualty Insurance
Whole market+20.1%24.5%0.87−53.8%+316%-0.06—
23
SDCIUSCF SummerHaven Dynamic Commodity Strategy No K-1 Fund · Broad Commodities
Whole market+21.1%18.4%1.14−45.7%—-0.050.80%
24
KOFCoca-Cola FEMSA, S.A.B. de C.V. · Food & Beverages
Whole market+22.4%24.7%0.95−55.1%+119%0.24—
25
IXCiShares Global Energy ETF · Energy Equity
Whole market+20.9%23.2%0.94−64.2%+183%0.010.37%
26
DBJPXtrackers MSCI Japan Hedged Equity ETF · Japan Equity
Whole market+20.9%19.3%1.09−31.3%+339%0.600.45%
27
CRAKVanEck Oil Refiners ETF · Oil Refining
Whole market+19.5%20.9%0.96−58.8%+325%0.190.61%
28
ATMPBarclays ETN+ Select MLP ETN · Energy Infrastructure
Whole market+21.7%21.5%1.02−70.3%+174%0.230.95%

VGT against its popular alternatives

The investments people most often weigh against VGT, compared period by period and year by year.

How do VGT's risk and return compare with its alternatives?

This map plots each investment's annual return over the past 5 years against its volatility, the size of its typical price swings. Investments toward the upper left earned more for a smoother ride, and those toward the lower right earned less for a rougher one. The dashed lines cross at VGT, which divides the map into what did better or worse on each measure.

Green points earned more than VGT with less volatility; red points earned less with more. Hover over a point for its figures. Total returns with dividends reinvested, annualized.

15.0%20.0%25.0%30.0%35.0%40.0%45.0%0.0%5.0%10.0%15.0%20.0%25.0%30.0%35.0%Volatility over 5 years (annualized)Annual return over 5 yearsHigher return, lower volatilityLower return, higher volatilityVGT: 18.1% a year, volatility 26.1%SPY (S&P 500): 12.5% a year, volatility 17.2%XSD: 17.2% a year, volatility 40.9%XLK: 19.0% a year, volatility 26.1%PTF: 13.5% a year, volatility 39.0%XNTK: 16.6% a year, volatility 29.3%IGM: 17.7% a year, volatility 26.6%FXL: 10.7% a year, volatility 26.2%QTEC: 12.3% a year, volatility 30.4%IGV: 4.7% a year, volatility 28.9%XSW: 3.3% a year, volatility 29.7%PSCT: 10.3% a year, volatility 29.0%SMH: 32.2% a year, volatility 37.0%SOXX: 26.3% a year, volatility 39.0%PSI: 22.2% a year, volatility 41.8%IXN: 18.8% a year, volatility 26.2%RSPT: 16.6% a year, volatility 25.1%IYW: 18.6% a year, volatility 26.7%TECB: 13.0% a year, volatility 23.9%TDIV: 16.5% a year, volatility 21.3%VUG: 11.9% a year, volatility 22.6%RSP: 8.4% a year, volatility 16.1%XLC: 7.1% a year, volatility 21.1%FTEC: 18.3% a year, volatility 26.1%QQQ: 14.2% a year, volatility 23.0%VOX: 6.4% a year, volatility 21.6%VGTSPY (S&P 500)XSDXLKPTFXNTKIGMFXLQTECIGVXSWPSCTSMHSOXXPSIRSPTTECBTDIVVUGRSPXLCQQQVOX10.0%20.0%30.0%40.0%50.0%0.0%5.0%10.0%15.0%20.0%25.0%30.0%35.0%Volatility over 5 years (annualized)Annual return over 5 yearsHigher return, lower volatilityLower return, higher volatilityVGT: 18.1% a year, volatility 26.1%SPY (S&P 500): 12.5% a year, volatility 17.2%XSD: 17.2% a year, volatility 40.9%XLK: 19.0% a year, volatility 26.1%PTF: 13.5% a year, volatility 39.0%XNTK: 16.6% a year, volatility 29.3%IGM: 17.7% a year, volatility 26.6%FXL: 10.7% a year, volatility 26.2%QTEC: 12.3% a year, volatility 30.4%IGV: 4.7% a year, volatility 28.9%XSW: 3.3% a year, volatility 29.7%PSCT: 10.3% a year, volatility 29.0%SMH: 32.2% a year, volatility 37.0%SOXX: 26.3% a year, volatility 39.0%PSI: 22.2% a year, volatility 41.8%IXN: 18.8% a year, volatility 26.2%RSPT: 16.6% a year, volatility 25.1%IYW: 18.6% a year, volatility 26.7%TECB: 13.0% a year, volatility 23.9%TDIV: 16.5% a year, volatility 21.3%VUG: 11.9% a year, volatility 22.6%RSP: 8.4% a year, volatility 16.1%XLC: 7.1% a year, volatility 21.1%FTEC: 18.3% a year, volatility 26.1%QQQ: 14.2% a year, volatility 23.0%VOX: 6.4% a year, volatility 21.6%VGTSPY (S&P 500)XSDXLKPTFXNTKFXLQTECIGVXSWSMHSOXXPSIRSPTTDIVRSPXLCQQQVOX
All figures
InvestmentAnnual returnVolatility
SMH VanEck Semiconductor ETF+32.2%37.0%
SOXX iShares Semiconductor ETF+26.3%39.0%
PSI Invesco Semiconductors ETF+22.2%41.8%
XLK State Street Technology Select Sector SPDR ETF+19.0%26.1%
IXN iShares Global Tech ETF+18.8%26.2%
IYW iShares U.S. Technology ETF+18.6%26.7%
FTEC Fidelity MSCI Information Technology Index ETF+18.3%26.1%
VGT This pageVanguard Information Technology ETF+18.1%26.1%
IGM iShares Expanded Tech Sector ETF+17.7%26.6%
XSD State Street SPDR S&P Semiconductor ETF+17.2%40.9%
RSPT Invesco S&P 500 Equal Weight Technology ETF+16.6%25.1%
XNTK State Street SPDR NYSE Technology ETF+16.6%29.3%
TDIV First Trust NASDAQ Technology Dividend Index Fund+16.5%21.3%
QQQ Invesco QQQ Trust, Series 1+14.2%23.0%
PTF Invesco Dorsey Wright Technology Momentum ETF+13.5%39.0%
TECB iShares U.S. Tech Breakthrough Multisector ETF+13.0%23.9%
SPY S&P 500State Street SPDR S&P 500 ETF+12.5%17.2%
QTEC First Trust NASDAQ-100-Technology Sector Index Fund+12.3%30.4%
VUG Vanguard Morningstar Growth ETF+11.9%22.6%
FXL First Trust Technology AlphaDEX Fund+10.7%26.2%
PSCT Invesco S&P SmallCap Information Technology ETF+10.3%29.0%
RSP Invesco S&P 500 Equal Weight ETF+8.4%16.1%
XLC State Street Communication Services Select Sector SPDR ETF+7.1%21.1%
VOX Vanguard Communication Services ETF+6.4%21.6%
IGV iShares Expanded Tech-Software Sector ETF+4.7%28.9%
XSW State Street SPDR S&P Software & Services ETF+3.3%29.7%
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Has VGT consistently beaten its popular alternatives?

This section compares VGT with the investments people most often weigh against it, checking each one over eight periods from one month to ten years. Counting how often an alternative earned more than VGT helps separate lasting outperformance from a single strong stretch.

A green cell means the alternative earned more than VGT over that period. "Qualified" marks those that did so in at least 3 of 5 short-term periods and 2 of 3 long-term periods.

InvestmentPeriods outperformed Short termLong termRisk · 5 yearsFund
1M3M6MYTD1Y3Y5Y10YVolatilitylower is calmerSharpehigher is betterWorst declinepast 10 yearsExpenseAssetsOverlapsame sectors
VGT Vanguard Information Technology ETF (this page)—−6.1%+2.7%+15.4%+25.9%+26.7%+135%+130%+753%26.1%0.77−35.1%0.09%$178B—
SMH TechnologyVanEck Semiconductor ETF2/5 short3/3 long−13.8%−10.8%+9.8%+40.2%+55.0%+272%+304%+1,570%37.0%0.94−45.3%0.35%$66B99%
SOXX Broad MarketiShares Semiconductor ETF2/5 short3/3 long−17.0%−14.3%+10.3%+51.9%+68.0%+219%+221%+1,297%39.0%0.80−45.8%0.33%$39B—
PSI TechnologyInvesco Semiconductors ETF2/5 short3/3 long−21.1%−23.6%−5.5%+41.5%+61.7%+197%+172%+1,027%41.8%0.69−44.9%0.55%$2.8B99%
XSD TechnologyState Street SPDR S&P Semiconductor ETF2/5 short2/3 long−15.4%−14.6%+2.6%+35.0%+36.6%+158%+121%+805%40.9%0.59−42.3%0.35%$2.7B97%
IXN InternationaliShares Global Tech ETF2/5 short2/3 long−8.8%−0.5%+14.3%+28.7%+31.1%+140%+137%+693%26.2%0.79−36.3%0.37%$9.1B—
RSPT TechnologyInvesco S&P 500 Equal Weight Technology ETF5/5 short1/3 long−3.9%+6.2%+21.6%+40.0%+43.0%+141%+116%+559%25.1%0.74−33.7%0.40%$6.1B99%
XLK TechnologyState Street Technology Select Sector SPDR ETF2/5 short1/3 long−7.1%+1.3%+15.6%+26.8%+28.4%+126%+139%+741%26.1%0.80−33.6%0.08%$125B99%
PTF TechnologyInvesco Dorsey Wright Technology Momentum ETF2/5 short1/3 long−6.1%−6.2%−6.4%+30.5%+38.5%+146%+88.5%+658%39.0%0.52−44.9%0.69%$589M94%
IYW Broad MarketiShares U.S. Technology ETF1/5 short1/3 long−6.4%+2.4%+16.3%+24.7%+26.1%+138%+135%+773%26.7%0.78−39.4%0.37%$24B—
XNTK TechnologyState Street SPDR NYSE Technology ETF0/5 short1/3 long−10.3%−1.9%+13.0%+23.3%+24.8%+159%+115%+691%29.3%0.67−48.3%0.35%$2.0B86%
IGM Broad MarketiShares Expanded Tech Sector ETF0/5 short1/3 long−7.9%+0.2%+11.0%+21.4%+23.1%+149%+126%+686%26.6%0.75−40.7%0.37%$11B—
FXL TechnologyFirst Trust Technology AlphaDEX Fund5/5 short0/3 long−2.1%+8.6%+17.8%+28.7%+29.3%+104%+66.4%+514%26.2%0.52−38.5%0.60%$2.7B91%
TECB Broad MarketiShares U.S. Tech Breakthrough Multisector ETF4/5 short0/3 long−3.2%+10.2%+23.2%+27.6%+25.6%+117%+84.5%—23.9%0.63−41.6%0.30%$500M58%
QTEC TechnologyFirst Trust NASDAQ-100-Technology Sector Index Fund3/5 short0/3 long−9.6%−2.2%+16.4%+29.2%+28.2%+110%+78.8%+509%30.4%0.54−45.5%0.55%$4.4B86%
IGV Broad MarketiShares Expanded Tech-Software Sector ETF3/5 short0/3 long+1.8%+22.1%+22.5%+6.0%−4.2%+60.5%+25.5%+381%28.9%0.30−45.9%0.38%$15B—
XSW TechnologyState Street SPDR S&P Software & Services ETF3/5 short0/3 long+6.3%+26.3%+36.2%+16.2%+8.6%+77.8%+17.6%+301%29.7%0.26−45.4%0.35%$488M91%
PSCT TechnologyInvesco S&P SmallCap Information Technology ETF3/5 short0/3 long−5.0%−4.4%+7.2%+33.3%+40.4%+92.6%+63.5%+275%29.0%0.48−40.4%0.29%$508M91%
TDIV TechnologyFirst Trust NASDAQ Technology Dividend Index Fund2/5 short0/3 long−1.5%+4.2%+6.8%+17.8%+16.4%+118%+115%+384%21.3%0.83−32.0%0.50%$4.4B84%
VUG Broad MarketVanguard Morningstar Growth ETF1/5 short0/3 long−4.2%+1.8%+5.2%+7.9%+9.2%+96.1%+75.4%+407%22.6%0.61−35.6%0.03%$392B59%
RSP Broad MarketInvesco S&P 500 Equal Weight ETF1/5 short0/3 long+2.5%+3.0%+8.6%+14.5%+16.8%+68.3%+49.6%+214%16.1%0.58−39.0%0.20%$98B19%
XLC CommunicationState Street Communication Services Select Sector SPDR ETF1/5 short0/3 long−5.4%−1.3%−8.3%−7.3%−6.0%+66.3%+40.9%—21.1%0.43−46.7%0.08%$24B0%
FTEC TechnologyFidelity MSCI Information Technology Index ETF0/5 short0/3 long−6.1%+2.6%+15.4%+25.9%+26.9%+136%+132%+737%26.1%0.78−34.9%0.08%$22B100%
QQQ Broad MarketInvesco QQQ Trust, Series 10/5 short0/3 long−5.8%0.0%+7.8%+15.3%+16.9%+101%+94.0%+531%23.0%0.69−35.1%0.18%$492B59%
VOX Broad MarketVanguard Communication Services ETF0/5 short0/3 long−5.9%−0.7%−6.3%−4.2%0.0%+78.0%+36.6%+131%21.6%0.40−46.8%0.09%$6.3B—
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How did VGT do year by year?

This table shows each investment's total return in every full calendar year since 2005, along with where VGT ranked among its popular alternatives each year. Annual results reveal how consistently each one kept pace with VGT and how far its good and bad years diverged, detail that multiyear averages tend to smooth over.

Note: VGT began trading on January 30, 2004, so the table starts with 2005, its first full calendar year, and cannot show how it fared during the dot-com bust.

Newest year first. Green marks a year in which the fund came out ahead of VGT; gray means the two finished within a fraction of a point. The rank row places VGT among the alternatives that traded the full year; dark green is the top quarter and red the bottom quarter.

InvestmentYears ahead of VGT202520242023202220212020201920182017201620152014201320122011201020092008200720062005
VGT This pageVanguard Information Technology ETF—+21.8%+29.3%+52.7%−29.7%+30.5%+46.0%+48.6%+2.4%+37.1%+13.7%+5.0%+18.1%+30.9%+14.0%+0.6%+12.8%+61.6%−42.8%+14.7%+9.1%+3.1%
Rank among alternativesTop quarter in 3 of 2116 of 259 of 2514 of 257 of 258 of 2512 of 247 of 244 of 238 of 2316 of 238 of 2310 of 2316 of 2211 of 215 of 2014 of 199 of 198 of 196 of 188 of 146 of 13
SPY S&P 500State Street SPDR S&P 500 ETF8 of 21+17.7%+24.9%+26.2%−18.2%+28.7%+18.3%+31.2%−4.6%+21.7%+12.0%+1.2%+13.5%+32.3%+16.0%+1.9%+15.1%+26.4%−36.8%+5.1%+15.9%+4.8%
SMH VanEck Semiconductor ETF13 of 21+49.2%+39.1%+73.4%−33.5%+42.1%+55.5%+64.5%−9.1%+38.5%+35.6%−0.3%+30.2%+33.4%+8.6%+6.8%+19.0%+60.5%−44.7%+6.0%−6.7%+10.8%
SOXX iShares Semiconductor ETF12 of 21+40.7%+12.9%+67.1%−35.1%+44.1%+52.7%+62.4%−6.5%+39.8%+38.3%−2.0%+29.8%+41.6%+6.6%−10.6%+14.3%+74.8%−51.7%−2.2%+0.2%+13.4%
PSI Invesco Semiconductors ETF9 of 20+36.3%+17.2%+49.0%−34.4%+46.5%+56.8%+52.5%−11.5%+40.2%+44.1%−0.9%+37.5%+31.9%+4.4%−14.5%+20.9%+47.0%−46.3%+0.4%+4.6%—
XSD State Street SPDR S&P Semiconductor ETF10 of 19+29.8%+10.8%+34.9%−30.9%+42.5%+62.0%+64.7%−6.3%+25.2%+29.4%+10.2%+31.1%+36.4%+2.4%−18.1%+15.7%+99.0%−47.7%−5.2%——
IXN iShares Global Tech ETF4 of 21+25.3%+24.8%+53.0%−29.9%+29.6%+43.6%+47.9%−5.4%+41.2%+13.9%+4.0%+15.3%+25.1%+15.8%−3.3%+10.3%+52.2%−42.9%+12.5%+9.9%+3.3%
RSPT Invesco S&P 500 Equal Weight Technology ETF6 of 19+22.2%+15.2%+35.2%−24.4%+28.5%+30.2%+42.1%−0.7%+32.8%+19.3%+2.8%+19.3%+40.9%+11.6%−6.6%+17.5%+69.1%−45.8%+0.9%——
XLK State Street Technology Select Sector SPDR ETF10 of 21+24.6%+21.6%+56.0%−27.7%+34.8%+43.6%+49.9%−1.7%+34.3%+15.0%+5.5%+17.9%+26.2%+15.4%+2.5%+11.5%+51.1%−41.5%+15.5%+12.2%−0.4%
PTF Invesco Dorsey Wright Technology Momentum ETF4 of 19+5.7%+43.6%+33.7%−31.7%+18.1%+82.0%+46.7%0.0%+32.1%+0.8%+3.5%+8.8%+35.9%+13.2%−9.1%+11.0%+43.8%−41.1%+5.3%——
IYW iShares U.S. Technology ETF8 of 21+25.4%+30.3%+65.5%−34.8%+35.4%+47.5%+46.6%−1.0%+36.6%+13.7%+3.7%+19.5%+26.6%+11.6%−0.1%+12.5%+63.8%−43.1%+15.1%+9.7%+2.6%
XNTK State Street SPDR NYSE Technology ETF9 of 21+38.1%+23.5%+70.1%−41.1%+17.6%+73.9%+38.1%−7.1%+40.4%+12.9%+7.2%+14.7%+32.6%+17.6%−10.5%+15.3%+70.5%−44.9%+9.6%+9.2%+2.8%
IGM iShares Expanded Tech Sector ETF6 of 21+26.8%+37.0%+60.8%−35.8%+25.7%+45.1%+41.9%+2.3%+37.1%+13.0%+9.5%+14.8%+34.1%+14.5%−1.1%+11.9%+62.5%−43.4%+16.1%+8.8%+1.4%
FXL First Trust Technology AlphaDEX Fund5 of 18+13.3%+16.0%+40.5%−30.4%+18.2%+54.2%+38.7%+2.7%+35.8%+15.4%−3.3%+16.4%+38.2%+8.5%−11.7%+26.7%+66.8%−48.4%———
TECB iShares U.S. Tech Breakthrough Multisector ETF1 of 5+14.8%+24.4%+57.5%−34.4%+19.6%————————————————
QTEC First Trust NASDAQ-100-Technology Sector Index Fund6 of 19+22.3%+7.3%+67.0%−39.8%+26.9%+38.8%+48.2%−4.6%+37.8%+25.3%−1.5%+25.1%+38.1%+8.0%−5.8%+21.7%+79.6%−45.1%+7.5%——
IGV iShares Expanded Tech-Software Sector ETF10 of 21+5.6%+23.4%+58.6%−35.7%+12.3%+52.9%+34.3%+12.5%+42.1%+5.8%+12.2%+13.4%+30.6%+16.9%−7.3%+24.6%+47.6%−38.5%+15.7%+10.8%−5.5%
XSW State Street SPDR S&P Software & Services ETF5 of 14−0.9%+25.8%+38.5%−34.2%+7.5%+52.4%+36.5%+7.7%+28.0%+8.5%+7.1%+5.8%+48.2%+15.0%———————
PSCT Invesco S&P SmallCap Information Technology ETF3 of 15+18.6%−1.1%+20.8%−22.5%+26.2%+27.8%+39.3%−9.3%+9.9%+33.6%+4.3%+12.9%+45.3%+10.7%−4.7%——————
TDIV First Trust NASDAQ Technology Dividend Index Fund3 of 13+25.3%+24.4%+36.7%−22.1%+29.5%+17.5%+33.3%−3.2%+22.0%+20.1%−6.4%+15.6%+30.9%————————
VUG Vanguard Morningstar Growth ETF7 of 21+19.4%+32.7%+46.8%−33.1%+27.4%+40.2%+37.0%−3.3%+27.8%+6.2%+3.3%+13.6%+32.6%+17.1%+1.8%+17.1%+36.3%−38.0%+12.8%+9.0%+4.8%
RSP Invesco S&P 500 Equal Weight ETF8 of 21+11.2%+12.8%+13.7%−11.6%+29.4%+12.7%+28.9%−7.8%+18.5%+14.5%−1.7%+15.1%+36.7%+18.6%+0.2%+21.5%+44.7%−40.0%+0.9%+15.5%+7.4%
XLC State Street Communication Services Select Sector SPDR ETF2 of 7+23.1%+34.7%+52.8%−37.6%+16.0%+26.9%+31.1%——————————————
FTEC Fidelity MSCI Information Technology Index ETF0 of 12+22.1%+29.4%+53.3%−29.6%+30.5%+45.8%+48.9%−0.4%+36.8%+13.9%+5.0%+18.4%—————————
QQQ Invesco QQQ Trust, Series 19 of 21+20.8%+25.6%+54.9%−32.6%+27.4%+48.6%+39.0%−0.1%+32.7%+7.1%+9.4%+19.2%+36.6%+18.1%+3.4%+19.9%+54.7%−41.7%+19.0%+7.2%+1.6%
VOX Vanguard Communication Services ETF7 of 21+26.3%+33.1%+44.8%−38.9%+13.8%+29.1%+28.0%−16.7%−5.5%+22.8%+2.7%+4.0%+24.3%+16.5%−2.1%+19.6%+29.5%−38.6%+5.1%+36.7%+2.0%
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Risk and diversification

How VGT has fallen, how it held up in crashes beside the S&P 500 and its popular alternatives, and what moves independently of it.

What were VGT's worst declines?

A drawdown is the decline from a peak to the lowest point before a new high. This section presents VGT's five deepest drawdowns since it began trading in 2004, alongside the S&P 500's return over the same dates, and how long each took to recover. Together, these figures show how much an investor could have lost and how long it took to get back to even.

Note: VGT began trading on January 30, 2004, so this list cannot include the dot-com bust. The crash tests on this page show how older funds and the S&P 500 fared through those years.

Green means VGT fell less than the S&P 500 over the same dates. Based on daily closing prices with dividends reinvested.

DuringVGT fellS&P 500, same datesPeakLowTime to the lowBack at the peakTime to recover
2008 financial crisis−54.6%−50.2%Oct 2007Nov 200813 monthsJan 20112.2 years
2022 bear market−35.1%−24.2%Dec 2021Oct 202210 monthsNov 202313 months
Covid crash−31.8%−33.7%Feb 2020Mar 20201 monthJun 20203 months
No named crash−27.2%−17.7%Dec 2024Apr 20254 monthsJun 20252 months
Late-2018 sell-off−23.7%−19.2%Oct 2018Dec 20182 monthsMar 20193 months

How did VGT do in stock market crashes?

This section measures how far VGT, the S&P 500 and each alternative fell from peak to trough during every major market crash since 2000. A smaller decline means an investment held up better, and comparing results across crashes shows whether that resilience was consistent or a one-off.

Note: VGT began trading on January 30, 2004, so its row reads "Not yet trading" for the dot-com bust. The older alternatives and the S&P 500 show how those crashes played out.

Newest crash first. Each figure is the fund's deepest fall within the crash window; green means a smaller fall than VGT.

InvestmentHeld up better2023 regional bank crisisMar 20232022 bear marketJan 2022Covid crashFeb 2020Late-2018 sell-offSep 2018February 2018 volatility shockFeb 20182015 China and oil sell-offAug 20152011 euro debt crisisJul 20112010 flash crashMay 20102008 financial crisisOct 2007Dot-com bustMar 2000
VGT This pageVanguard Information Technology ETF—−3.5%−33.6%−31.8%−23.7%−6.6%−16.4%−18.1%−2.1%−54.6%Not yet trading
SPY S&P 500State Street SPDR S&P 500 ETF4 of 9−3.4%−24.5%−33.7%−19.3%−6.5%−12.8%−17.9%−1.5%−55.2%−47.5%
SMH VanEck Semiconductor ETF1 of 9−3.6%−44.1%−33.6%−23.5%−7.4%−17.9%−18.6%−1.5%−59.2%—
SOXX iShares Semiconductor ETF2 of 9−3.9%−44.6%−34.3%−22.8%−7.4%−18.9%−19.8%−1.2%−65.7%—
PSI Invesco Semiconductors ETF0 of 9−4.2%−43.4%−36.6%−23.9%−8.2%−20.5%−30.2%−2.4%−59.2%—
XSD State Street SPDR S&P Semiconductor ETF2 of 9−4.8%−40.6%−35.9%−22.2%−8.1%−18.6%−27.5%−1.1%−63.5%—
IXN iShares Global Tech ETF4 of 9−3.1%−35.1%−30.9%−23.2%−6.7%−14.8%−17.6%−1.9%−55.8%—
RSPT Invesco S&P 500 Equal Weight Technology ETF2 of 9−4.6%−31.6%−33.7%−22.1%−6.8%−16.9%−20.5%−2.3%−58.2%—
XLK State Street Technology Select Sector SPDR ETF5 of 9−3.2%−32.4%−31.1%−23.8%−6.7%−12.7%−15.9%−2.1%−53.0%−82.0%
PTF Invesco Dorsey Wright Technology Momentum ETF1 of 9−4.9%−37.0%−34.6%−26.8%−5.8%−26.1%−24.4%−2.7%−54.5%—
IYW iShares U.S. Technology ETF1 of 9−3.7%−36.7%−30.5%−23.7%−6.7%−16.0%−17.8%−2.3%−54.8%—
XNTK State Street SPDR NYSE Technology ETF0 of 9−4.2%−44.4%−32.3%−25.3%−6.6%−21.5%−19.3%−2.0%−58.0%—
IGM iShares Expanded Tech Sector ETF1 of 9−3.8%−37.7%−30.2%−23.9%−6.6%−17.3%−18.2%−2.6%−54.9%—
FXL First Trust Technology AlphaDEX Fund0 of 9−5.3%−34.2%−34.0%−24.3%−6.7%−20.7%−24.6%−2.4%−61.4%—
TECB iShares U.S. Tech Breakthrough Multisector ETF1 of 3−4.1%−37.2%−27.9%———————
QTEC First Trust NASDAQ-100-Technology Sector Index Fund1 of 9−4.2%−41.9%−32.3%−20.0%−7.0%−18.1%−19.3%−2.2%−58.9%—
IGV iShares Expanded Tech-Software Sector ETF3 of 9−4.9%−36.3%−30.3%−22.2%−6.2%−21.5%−22.4%−2.5%−49.8%—
XSW State Street SPDR S&P Software & Services ETF1 of 6−6.9%−35.8%−37.8%−23.3%−4.0%−24.0%————
PSCT Invesco S&P SmallCap Information Technology ETF3 of 8−5.3%−29.6%−37.5%−25.2%−5.1%−14.8%−28.0%−6.1%——
TDIV First Trust NASDAQ Technology Dividend Index Fund5 of 6−2.4%−32.0%−30.6%−18.5%−6.3%−14.7%————
VUG Vanguard Morningstar Growth ETF3 of 9−3.5%−33.7%−31.8%−22.3%−6.2%−15.2%−18.3%−2.0%−50.7%—
RSP Invesco S&P 500 Equal Weight ETF4 of 9−5.4%−21.4%−39.0%−19.8%−6.1%−14.8%−21.3%−1.6%−59.1%—
XLC State Street Communication Services Select Sector SPDR ETF2 of 4−3.6%−38.5%−30.1%−20.5%——————
FTEC Fidelity MSCI Information Technology Index ETF0 of 6−3.5%−33.5%−31.9%−24.0%−6.6%−16.4%————
QQQ Invesco QQQ Trust, Series 14 of 9−3.1%−33.4%−28.6%−22.7%−6.8%−16.1%−16.1%−2.5%−53.4%−83.0%
VOX Vanguard Communication Services ETF4 of 9−4.1%−39.5%−31.2%−20.0%−6.4%−9.3%−16.4%−2.1%−56.7%—
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How closely does VGT move with the S&P 500?

Upside capture measures how much of the S&P 500's gains an investment kept in the months the market rose, and downside capture how much of its losses it took in the months the market fell. An investment that captures more of the gains than the losses has compounded ahead of the market over time. This section compares VGT with its popular alternatives on both measures, and on beta (how strongly each has moved with the market), over the past 10 years.

Monthly total returns over the past 10 years, measured against SPY. 100% capture or a beta of 1.00 means moving in line with the S&P 500. Green marks a better figure than VGT's: more upside, less downside or a higher capture ratio. Sorted by capture ratio.

InvestmentUpside captureDownside captureCapture ratioBeta
VGT This pageVanguard Information Technology ETF130%104%1.251.22
SMH VanEck Semiconductor ETF159%108%1.471.46
SOXX iShares Semiconductor ETF156%112%1.391.50
PSI Invesco Semiconductors ETF150%110%1.361.54
XLK State Street Technology Select Sector SPDR ETF128%100%1.281.19
IYW iShares U.S. Technology ETF131%104%1.261.21
IXN iShares Global Tech ETF127%102%1.251.20
FTEC Fidelity MSCI Information Technology Index ETF130%104%1.241.21
XNTK State Street SPDR NYSE Technology ETF131%108%1.221.30
PTF Invesco Dorsey Wright Technology Momentum ETF125%103%1.211.38
IGM iShares Expanded Tech Sector ETF131%110%1.191.24
QQQ Invesco QQQ Trust, Series 1118%102%1.161.13
XSD State Street SPDR S&P Semiconductor ETF151%133%1.131.65
RSPT Invesco S&P 500 Equal Weight Technology ETF125%114%1.101.24
QTEC First Trust NASDAQ-100-Technology Sector Index Fund124%113%1.101.26
FXL First Trust Technology AlphaDEX Fund120%111%1.081.22
VUG Vanguard Morningstar Growth ETF113%108%1.041.13
TDIV First Trust NASDAQ Technology Dividend Index Fund109%108%1.011.07
IGV iShares Expanded Tech-Software Sector ETF112%114%0.991.10
PSCT Invesco S&P SmallCap Information Technology ETF108%119%0.911.27
XSW State Street SPDR S&P Software & Services ETF110%129%0.861.18
RSP Invesco S&P 500 Equal Weight ETF92%107%0.861.01
VOX Vanguard Communication Services ETF91%120%0.751.03
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What diversifies VGT?

Correlation measures how closely two investments move together, on a scale from 1 (in lockstep) through 0 (unrelated) to -1 (in opposite directions). This section lists large ETFs and stocks whose returns have had a low correlation with VGT's. Because such investments tend not to fall at the same time, pairing VGT with them can reduce a portfolio's overall swings.

Only ETFs with at least $1.0B in assets and stocks worth at least $10B, with a correlation below 0.5 over the past 5 years and a positive return, are included, ranked by Sharpe ratio; funds that hold the same thing are shown once. The year columns are the years in which VGT lost money. The last two columns show a portfolio that is 80% VGT and 20% the other investment, rebalanced monthly.

ETFs

InvestmentCorrelation5Y returnSharpe2022200880/20 mix volatility80/20 mix annual return
VGT Vanguard Information Technology ETF (this page)1.00+130%0.77−29.7%−42.8%23.4%+20.9%
LVHI InternationalFranklin International Low Volatility High Dividend Index ETF0.26+119%1.48+3.8%—19.3%+20.6%
DXJ InternationalWisdomTree Japan Hedged Equity Fund0.43+225%1.34+6.0%−20.8%19.9%+22.5%
EMLP Broad MarketFirst Trust North American Energy Infrastructure Fund0.32+103%1.06+10.4%—19.8%+20.3%
EWP Broad MarketiShares MSCI Spain ETF0.35+141%0.97−5.2%−36.8%20.3%+21.4%
XLE EnergyState Street Energy Select Sector SPDR ETF0.03+178%0.94+64.4%−39.0%19.6%+22.4%
GLD CommoditiesSPDR Gold Shares0.03+120%0.93−0.8%+4.9%19.1%+21.1%
AMLP EnergyAlerian MLP ETF0.21+114%0.90+25.5%—19.8%+21.1%
EFV InternationaliShares MSCI EAFE Value ETF0.38+89.4%0.89−5.2%−41.7%20.1%+20.0%

Stocks

InvestmentCorrelation5Y returnSharpe2022200880/20 mix volatility80/20 mix annual return
VGT Vanguard Information Technology ETF (this page)1.00+130%0.77−29.7%−42.8%23.4%+20.9%
CAH Medical - DistributionCardinal Health, Inc.0.16+471%1.54+54.1%−39.6%20.3%+25.1%
MCK Medical - DistributionMcKesson Corporation0.00+397%1.41+51.8%−40.4%19.4%+24.6%
MPC Oil & Gas Refining & MarketingMarathon Petroleum Corporation0.11+660%1.39+86.6%—20.5%+27.4%
PBR Oil & Gas IntegratedPetróleo Brasileiro S.A. - Petrobras-0.02+721%1.32+55.4%−55.6%20.0%+27.3%
HWM Aerospace & DefenseHowmet Aerospace Inc.0.38+544%1.31+24.2%−67.4%22.3%+27.2%
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Common questions

What was VGT's worst drawdown?

VGT's deepest decline since it began trading in 2004 was 54.6%, from October 2007 to November 2008. It took 26 months from the low to climb back to its old high. Because VGT launched in January 2004, that record does not include the dot-com bust.

What were VGT's best and worst years?

Over 21 full calendar years, VGT's best year was 2009, when it returned 61.6%. Its worst was 2008, with a return of -42.8%.

Is there a better investment than VGT?

Looking beyond its popular alternatives, MSFT (software) fell less than VGT in each recent sell-off and kept up with it over the past decade. Few investments have done better on both counts: only 31 of the 3,641 stocks and funds worth at least $500 million earned more than VGT with less volatility over the past 5 years, among them WMT, ABBV and PM.

Is VGT more volatile than the S&P 500?

Yes. VGT's volatility over the past 5 years was 26.1%, 1.5 times the S&P 500's 17.2%. Volatility measures how widely returns swing around their average: in roughly two years out of three, VGT's return lands within 26.1% of its average, either way. The higher it is, the rougher the ride and the harder it is to hold through a slump.

What is VGT's Sharpe ratio?

VGT's Sharpe ratio over the past 5 years was 0.77, against 0.78 for the S&P 500, so VGT earned less for each unit of risk than an index fund did. The Sharpe ratio is the return earned above cash for each unit of volatility: two investments with the same return are not equal if one got there with far bigger swings.

How correlated is VGT with the S&P 500?

Over the past 5 years, VGT's monthly returns had a correlation of 0.90 with the S&P 500. Correlation runs from 1 (moving in lockstep) through 0 (unrelated) to −1 (moving in opposite directions). They move almost in lockstep, so holding both adds little diversification. In the table, the correlation column measures each option against VGT instead: the lower it is, the more that option would diversify a VGT holding.

What are the best alternatives to VGT?

None of the 24 popular alternatives we compared outperformed VGT in at least 3 of 5 short-term and 2 of 3 long-term timeframes, which says more about VGT's strength than about its alternatives.

Did VGT outperform the S&P 500?

VGT finished ahead of the S&P 500 (SPY) in 13 of 21 full calendar years. In 2025, it returned +21.8%, against +17.7% for the index.

How did VGT do in stock market crashes?

VGT fell less than the S&P 500 (SPY) in two of the nine major crashes it has traded through, and further in four. The clearest case was the 2022 bear market, when VGT fell 33.6% and the S&P 500 fell 24.5%.

What diversifies VGT?

These had a low correlation with VGT over the past 5 years and still earned a positive 5-year return: among large ETFs, LVHI (correlation 0.26), DXJ (correlation 0.43) and EMLP (correlation 0.32); among large stocks, CAH (correlation 0.16), MCK (correlation 0.00) and MPC (correlation 0.11). A correlation near zero means the two have moved largely independently.

How we measure

More research

Popular alternatives to VGT

Other stocks and ETFs