The Vanguard Information Technology ETF (VGT) is one of the purest plays on the U.S. tech sector in the market. Tracking the MSCI US Investable Market Information Technology 25/50 Index, it captures nearly every primary name driving digital transformation, from AI hardware and cloud software to chip manufacturing and enterprise systems. In 2025, it’s up 22.7% year-to-date, easily outpacing the broader market as investors continue to chase innovation-led growth.
| Rank | Symbol | Company | % Weight |
|---|---|---|---|
| 1 | NVDA | NVIDIA Corp. | 17.18% |
| 2 | MSFT | Microsoft Corp. | 13.73% |
| 3 | AAPL | Apple Inc. | 13.05% |
| 4 | AVGO | Broadcom Inc. | 4.32% |
| 5 | ORCL | Oracle Corp. | 2.02% |
| 6 | PLTR | Palantir Technologies Inc. | 1.86% |
| 7 | CSCO | Cisco Systems Inc. | 1.50% |
| 8 | AMD | Advanced Micro Devices Inc. | 1.44% |
| 9 | CRM | Salesforce Inc. | 1.32% |
| 10 | IBM | International Business Machines Corp. | 1.23% |
| 11 | NOW | ServiceNow Inc. | 1.04% |
| 12 | INTU | Intuit Inc. | 1.03% |
| 13 | TXN | Texas Instruments Inc. | 1.02% |
| 14 | QCOM | QUALCOMM Inc. | 0.99% |
| 15 | ACN | Accenture plc | 0.90% |
| 16 | ADBE | Adobe Inc. | 0.85% |
| 17 | ANET | Arista Networks Inc. | 0.84% |
| 18 | APH | Amphenol Corp. | 0.77% |
| 19 | MU | Micron Technology Inc. | 0.75% |
| 20 | LRCX | Lam Research Corp. | 0.74% |
| 21 | AMAT | Applied Materials Inc. | 0.74% |
| 22 | PANW | Palo Alto Networks Inc. | 0.73% |
| 23 | ADI | Analog Devices Inc. | 0.71% |
| 24 | KLAC | KLA Corp. | 0.67% |
| 25 | SNPS | Synopsys Inc. | 0.67% |
Tech’s resurgence this year has been driven by surging AI investment, continued expansion of enterprise cloud services, and resilient consumer demand for connected devices and services. VGT brings these stories together in one package. Its three most significant holdings, NVIDIA, Microsoft, and Apple, make up nearly 45% of the portfolio, giving the ETF intense exposure to the companies shaping global computing trends.
For investors, VGT remains a core vehicle for accessing the digital backbone of the modern economy. Whether it’s semiconductors powering AI data centers, software enabling business productivity, or hardware driving consumer ecosystems, VGT consolidates the entire value chain into one efficient fund.
1. NVIDIA (NVDA)
NVIDIA dominates VGT with a 17.2% weighting, reflecting its unmatched role in powering artificial intelligence. The company’s GPUs have become the global standard for AI training and inference, making them indispensable to cloud providers, research institutions, and enterprises. As demand for accelerated computing skyrockets, NVIDIA continues to post record-breaking revenue and profitability.
In 2025, the company’s AI data-center business remains the main growth engine, bolstered by demand for its high-end H100 and Blackwell chips. Its CUDA software platform and growing suite of AI-as-a-service offerings have deepened customer dependency, transforming NVIDIA from a hardware manufacturer into a full-stack computing company.
For VGT investors, NVIDIA is the portfolio’s growth heartbeat, high risk, high reward, and a clear beneficiary of the ongoing AI revolution. Its strong balance sheet, pricing power, and dominance across industries ensure it remains the ETF’s key performance driver.
2. Microsoft (MSFT)
Microsoft, VGT’s second-largest holding at 13.7%, continues to redefine how businesses operate through its cloud and software ecosystem. Azure, Office 365, and Dynamics remain pillars of enterprise productivity, while the company’s AI integration efforts have expanded its reach across both consumer and business applications.
This year, Microsoft’s strategic use of OpenAI’s technology has propelled it to the center of the AI productivity race. The launch of Copilot across its software suite has created new recurring revenue streams and cemented Microsoft’s lead in enterprise AI. Its diversification, spanning cloud infrastructure, gaming, and cybersecurity, makes it one of the most balanced tech giants in the world.
For VGT investors, Microsoft provides stability amid the sector’s volatility. It’s a steady compounder with robust cash flow, recurring revenue, and a proven record of turning emerging technologies into profitable platforms.
Value stocks in less than 60 seconds with TIKR’s new Valuation Model (It’s free) >>>
3. Apple (AAPL)
Apple, with a 13.1% weighting in VGT, continues to dominate the global consumer technology sector. Its ecosystem of devices, services, and digital platforms keeps billions of users locked into a seamless experience, a combination that has powered over a decade of unmatched brand loyalty.
While hardware sales have matured, Apple’s services segment, including iCloud, Apple Music, and App Store revenue, has become a powerful growth engine. In 2025, Apple is leaning into AI-enabled features and augmented reality, positioning itself for the next computing frontier with the Vision Pro headset and improved device integration.
For VGT investors, Apple offers stability and predictable cash generation in an otherwise cyclical sector. Its consistent innovation, share buybacks, and dividend policy make it a cornerstone of both growth and income within the fund.
What VGT Really Owns
VGT’s top three holdings, NVIDIA, Microsoft, and Apple, comprise roughly 44% of the ETF, illustrating the concentrated power of Big Tech. Together, they embody the evolution of modern computing, from hardware innovation to cloud dominance and digital ecosystems. Below them, the ETF’s next tier of holdings, including Broadcom, Oracle, Palantir, Cisco, and AMD, provide a blend of infrastructure, enterprise software, and semiconductor exposure.
This combination gives VGT remarkable depth across the tech stack. Investors benefit from both the long-term compounding of software and the cyclical growth potential of semiconductors. The fund’s 22.7% YTD return underscores how effectively this balance has captured the resurgence in global technology demand.
Key Insights
- +22.7% YTD return, 30.8% CAGR over 0.76 years.
- Focused exclusively on U.S. information technology stocks.
- Top holdings: NVIDIA (17.2%), Microsoft (13.7%), Apple (13.1%).
- Key themes: AI, cloud computing, semiconductors, and software services.
- Expense ratio: 0.10%, one of the lowest in the tech-ETF category.
- Offers exposure to AI hardware (NVIDIA, AMD) and enterprise software (MSFT, ORCL, CRM) in one fund.
Why You Should Invest In VGT
The Vanguard Information Technology ETF (VGT) remains one of the most efficient and powerful ways to invest in America’s tech leadership. Its concentrated but high-quality portfolio focuses on companies that define the global economy, cloud computing, artificial intelligence, semiconductors, and digital services. With an expense ratio of just 0.10%, VGT provides access to innovation at a fraction of the cost of actively managed funds.
While the ETF is inherently cyclical and can be sensitive to valuation swings, its long-term track record speaks for itself. The combination of innovation, scale, and profitability among its top holdings makes it a proven compounder for patient investors.
As AI and automation continue to reshape industries, VGT stands as a straightforward way to participate in that transformation. It’s not just a tech ETF, it’s a lens into the next chapter of global productivity and digital evolution.
Quickly value any stock with TIKR’s powerful new Valuation Model (It’s free!) >>>
Want to Invest Like Warren Buffett, Joel Greenblatt, or Peter Lynch?
TIKR just published a special report breaking down 5 powerful stock screeners inspired by the exact strategies used by the world’s greatest investors.
In this report, you’ll discover:
- A Buffett-style screener for finding wide-moat compounders at fair prices
- Joel Greenblatt’s formula for high-return, low-risk stocks
- A Peter Lynch-inspired tool to surface fast-growing small caps before Wall Street catches on
Each screener is fully customizable on TIKR, so you can apply legendary investing strategies instantly. Whether you’re looking for long-term compounders or overlooked value plays, these screeners will save you hours and sharpen your edge.
This is your shortcut to proven investing frameworks, backed by real performance data.
Click here to sign up for TIKR and get this full report now, completely free.
Looking for New Opportunities?
- See what stocks billionaire investors are buying so you can follow the smart money.
- Analyze stocks in as little as 5 minutes with TIKR’s all-in-one, easy-to-use platform.
- The more rocks you overturn… the more opportunities you’ll uncover. Search 100K+ global stocks, global top investor holdings, and more with TIKR.
Disclaimer:
Please note that the articles on TIKR are not intended to serve as investment or financial advice from TIKR or our content team, nor are they recommendations to buy or sell any stocks. We create our content based on TIKR Terminal’s investment data and analysts’ estimates. Our analysis might not include recent company news or important updates. TIKR has no position in any stocks mentioned. Thank you for reading, and happy investing!
