By Matt DiLallo, The Motley Fool
Publication Date: 2026-08-22 12:20:00
The Vanguard Information Technology ETF (NYSEMKT: VGT) has delivered a monster 24% annualized return over the last decade. If the fund maintains its pace over the next 10 years, it would grow from today’s price of around $120 a share to more than $1,000 per share.
The fund’s past performance doesn’t guarantee similar returns in the future. However, the Vanguard Information Technology ETF‘s heavy allocation to AI semiconductor giants Nvidia and Broadcom bodes well for its future return potential.
Missed Nvidia in 2009? This Rare Signal Is Flashing Again. In 2009, a “Double Down” signal flashed for a little-known chipmaker called Nvidia. For the first time in years, that same “Total Conviction” signal is flashing for a company 1/100th the size of Nvidia. Continue »
Loaded with growth
VGT has been a strong performer since its inception in 2004 with a 14.6% annualized return. Its performance has been really strong over the past decade, including one-, three-, and five-year annualized returns ranging from 17.8% to 31.7%. That’s due in large part to the robust performance of semiconductor stocks, which are crucial for AI. For example, Broadcom and Nvidia have delivered eye-popping annualized returns of 35.5% and 63.8%, respectively, over the past decade, helping drive this fund’s robust performance.
They should continue to be major contributors to its future success. Nvidia is the…

