What is the expense ratio of VGT?

VGT has an expense ratio of 0.10%, half of QQQ's 0.20%.

Has VGT outperformed QQQ?

Yes, according to the article, VGT has outperformed QQQ recently due to its focus on the high-growth technology sector.

What are the top holdings of VGT?

Top holdings of VGT include NVIDIA (NVDA), Microsoft (MSFT), and Apple (AAPL).

Vanguard's VGT Tech ETF Outperforms QQQ at Half the Fee

Vanguard Information Technology ETF (VGT) outperforms Invesco QQQ Trust (QQQ) in performance while charging half the expense ratio, making it an attractive option for tech-focused investors. The fund has approximately $143 billion in assets.

July 4, 2026

2 min read

Source: 24/7 Wall St.

Key Numbers

vgt aum

143B

vgt expense ratio

0.10%

qqq expense ratio

0.20%

Why Vanguard's $143 Billion Tech ETF Outpaced QQQ While Charging Half the Fee

A 45-year-old tech professional sitting on $200,000 in Invesco QQQ Trust (QQQ) for growth exposure has a fair question in 2026: why hold a Nasdaq-100 fund that includes Costco and Pepsi when a pure-tech alternative exists at half the cost? That alternative is Vanguard Information Technology ETF (VGT), a roughly $143 billion fund that has outperformed QQQ.

Details

VGT charges an expense ratio of 0.10%, half of QQQ's 0.20%. It focuses exclusively on the technology sector, while QQQ includes companies from other sectors like consumer staples and healthcare. This pure-play focus gives VGT greater exposure to high-growth tech stocks such as NVIDIA (NVDA), Microsoft (MSFT), and Apple (AAPL).

Context

In recent years, the technology sector has outperformed the broader market, making sector-specific funds like VGT more attractive. However, sector concentration carries higher risk if tech stocks decline.

What It Means for Investors

For investors seeking pure tech exposure, VGT offers a cost-effective alternative with historically superior performance. However, sector concentration increases risk, and QQQ may be better for those wanting broader diversification.

Frequently Asked Questions

VGT is a sector-specific ETF focused solely on technology, while QQQ tracks the Nasdaq-100 index, which includes companies from multiple sectors like technology, consumer staples, and healthcare.

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This article was rewritten in Wrqti's editorial style based on information from the original source above. Content is informational only — not investment advice.