If You Invested $1,000 in VGT 10 Years Ago, Here's What You'd Have Today
You would have outperformed the market and most tech-focused ETFs.
Overview
Although individual stocks usually get much of investors' attention, exchange-traded funds (ETFs) can often be just as lucrative, if not more so. The Vanguard Information Technology ETF (NYSEMKT: VGT) is a good example of this.
As of Monday's prices, VGT is up 790% over the past 10 years, meaning a $1,000 investment made then would be worth around $8,900 today. Including dividends, the gains jump to 874%, which would take a $1,000 investment to over $9,740.
Details
VGT holds 323 stocks in the information technology sector. It has grown steadily over the past decade, but much of its price appreciation has come in the past few years, driven by the current AI boom. And much of that has come from its top holdings. Nvidia, Apple, and Microsoft alone account for nearly 42% of the ETF, so their performances have a huge impact on VGT's performance. If you're looking for a tech ETF, VGT is a good choice.
Source
Originally published at www.fool.com.