Should You Invest in the Vanguard Information Technology ETF (VGT)? (2024)

FAQs

Is Vanguard VGT a good investment? ›

Vanguard Information Technology ETF holds a Zacks ETF Rank of 2 (Buy), which is based on expected asset class return, expense ratio, and momentum, among other factors. Because of this, VGT is a great option for investors seeking exposure to the Technology ETFs segment of the market.

What do analysts say about VGT? VGT's analyst rating consensus is a Moderate Buy. This is based on the ratings of 2804 Wall Streets Analysts.

Ratios above 1.00 indicate higher risk than average. Vanguard Information Technology ETF has an above average total risk index of 1.59 because of its standard deviation of 23.8%.

ETFs are considered to be low-risk investments because they are low-cost and hold a basket of stocks or other securities, increasing diversification. For most individual investors, ETFs represent an ideal type of asset with which to build a diversified portfolio.

Considering the 90-day investment horizon and your complete indifference towards market risk, our recommendation regarding Vanguard Information Technology is 'Strong Buy'.

Vanguard's Technology ETF VGT has underperformed in 2022 as many large firms face layoffs amid falling sales and rising input costs. Inflation is particularly troublesome for technology companies due to their dependence on imports and the impact of interest rates on growth stock valuations.

Capital Growth as of May 31, 2023

An investment of 1000$, since January 2005, now would be worth 10392.20$, with a total return of 939.22% (13.55% annualized). The Inflation Adjusted Capital now would be 6502.66$, with a net total return of 550.27% (10.70% annualized).

Based on our forecasts, a long-term increase is expected, the "VGT" fund price prognosis for 2028-06-14 is 645.059 USD. With a 5-year investment, the revenue is expected to be around +46.75%. Your current $100 investment may be up to $146.75 in 2028. Get It Now!

Yes, VGT has paid a dividend within the past 12 months. How much is VGT's dividend? When is VGT ex-dividend date? VGT's previous ex-dividend date was on Mar 23, 2023.

Should I invest in QQQ or VGT? ›

Bottom Line. VGT has edged past QQQ with its returns. Moreover, it has a lower expense ratio of 0.10% compared to QQQ's 0.20%. However, both of these ETFs carry a Moderate Buy consensus rating on TipRanks and have an Outperform Smart Score.

VGT has a dividend yield of 0.71% and paid $3.00 per share in the past year. The dividend is paid every three months and the last ex-dividend date was Mar 24, 2023.

Holding period:

If you hold ETF shares for one year or less, then gain is short-term capital gain. If you hold ETF shares for more than one year, then gain is long-term capital gain.

Now is a great time to load up on quality ETFs.

The stock market has been rough this year, which can make it a daunting time to invest. But this volatility will pass, and over the long term, it's extremely likely the market will see positive average returns.

At this time, the etf appears to be undervalued. Our model measures the value of Vanguard Information from inspecting the etf fundamentals such as Five Year Return of 16.51 %, number of employees of 12, and Price to Earning of 20.75 X as well as reviewing its technical indicators and Probability Of Bankruptcy.

If you're willing to take on more risk for the chance of beating the market, right now may be your best time to buy. Growth stocks have been pummeled during this downturn, and by investing now, you'll be well-positioned to take advantage of the upswing.

Leveraged ETF prices tend to decay over time, and triple leverage will tend to decay at a faster rate than 2x leverage. As a result, they can tend toward zero.

You're forced to sell or take liquidation proceeds, which can create a tax burden or lock in investment losses. You may incur a capital gains tax on profits if the ETF's in a taxable account, that is, a non-retirement account.

What is the price prediction for Vanguard Information Technology ETF? ›

Should I buy Vanguard Information Tech ETF Stock (VGT) now? Future price of the stock is predicted at $405.79 (+0.88%) after a year according to our prediction system. This means that if you invested $100 now, your current investment may be worth $100.9 on 2024-May-22.

Most investors would view an average annual rate of return of 10% or more as a good ROI for long-term investments in the stock market. However, keep in mind that this is an average.

A good return on investment is generally considered to be about 7% per year, based on the average historic return of the S&P 500 index, and adjusting for inflation. But of course what one investor considers a good return might not be ideal for someone else.

VGT's top 3 holdings are AAPL, MSFT, NVDA. ETF VGT's is holdings 366 different assets. ETF VGT's total assets are 52.36B.

Vanguard Information Technology ETF Is A Growth Machine.

Vanguard High-Yield Corporate Fund (VWEAX)

The Vanguard High-Yield Corporate Fund is the company's top performing bond fund over the past decade, featuring a high-yield, intermediate-term fixed income portfolio.

The fastest growing fund managed by U.S. asset management company Vanguard is the Vanguard Energy Index Fund. Over the year to January 16, 2023, the ETF generated an annual return of 44.19 percent. Vanguard's fastest growing mutual fund was also the Vanguard Energy Index Fund, which grew by 38.4 percent.

Bottom Line. Overall, Vanguard and Fidelity are both great choices for those interested in investing. They offer a wide range of investment options, low costs, and hands-off or active management depending on your preference. When it comes to index funds, Vanguard is hard to beat, with hundreds of low-cost options.

Do you have to pay taxes on ETFs? ›

The IRS taxes dividends and interest payments from ETFs just like income from the underlying stocks or bonds, with the income being reported on your 1099 statement. Profits on ETFs sold at a gain are taxed like the underlying stocks or bonds as well.

Also available as an Admiral™ Shares mutual fund.

VGT - Volatility Comparison. The current volatility for Invesco QQQ (QQQ) is 5.04%, while Vanguard Information Technology ETF (VGT) has a volatility of 5.86%. This indicates that QQQ experiences smaller price fluctuations and is considered to be less risky than VGT based on this measure.

Since the job of most ETFs is to track an index, we can assess an ETF's efficiency by weighing the fee rate the fund charges against how well it “tracks”—or replicates the performance of—its index. ETFs that charge low fees and track their indexes tightly are highly efficient and do their job well.

ETFs often generate fewer capital gains for investors than mutual funds. This is partly because so many of them are passively managed and don't change their holdings that often. However, ETFs also have a structural ability, called the in-kind creation/redemption mechanism, to minimize the capital gains they distribute.

Dividend ETFs are established in order to gain high yields when investing in high-dividend-paying common stocks, preferred stocks, or real estate investment trusts (REIT). Dividend ETFs may contain only U.S. domestic stocks, or they may be global dividend ETFs, which have an international focus.

Vanguard Information Technology ETF holds a Zacks ETF Rank of 2 (Buy), which is based on expected asset class return, expense ratio, and momentum, among other factors. Because of this, VGT is a great option for investors seeking exposure to the Technology ETFs segment of the market.

For Vanguard Information Tech ETF Stock (VGT) price forecast for 2024, a forecast is offered for each month of 2024 with average VGT price forecast of $441.75, a high forecast of $442.81, and a low forecast of $351.24. The average VGT price prediction of 2024 represents a +0.04% increase from the last price of $441.58.

How much dividend does VGT pay per share? ›

When is VGT dividend payment date? VGT's next quarterly payment date is on Mar 28, 2023, when VGT shareholders who owned VGT shares before Mar 23, 2023 received a dividend payment of $0.77 per share.