Published on 30 May 2024 on Motley Fool via Yahoo Finance

Is Vanguard Information Technology Index Fund ETF a Millionaire Maker?

Vanguard Information Technology Index Fund ETF (NYSEMKT: VGT) has risen around 35% over the past year versus a roughly 27% gain for the S&P 500 index. The spread between the two gets even wider as you go back three, five, and 10 years. Is this the exchange-traded fund (ETF) you need to reach millionaire status? Maybe, but go in recognizing the risks.

What does Vanguard Information Technology Index Fund ETF do?

As Vanguard Information Technology Index Fund ETF's name implies, it is an index fund. So it tracks a rote list of stocks that are in the index it follows, which is the MSCI US Investable Market Information Technology 25/50 Index. The index invests in three broad technology segments: internet services and infrastructure companies; information technology consulting and services, and technology hardware and equipment companies; and semiconductor and semiconductor equipment manufacturer companies.