# How Vanguard Information Technology ETF (VGT) compares with the whole market and its popular alternatives

> Source: EasyCompare research, https://easycompare.io/research/vgt
> Data as of October 20, 2026. Total returns include reinvested dividends. Past performance does not predict future results; nothing here is investment advice.

Built by QuantCommons' quantitative engine, this page is about relative opportunity, not data on VGT alone. It places VGT (Vanguard Information Technology ETF) against 20+ popular alternatives, its neighboring categories and the entire market of over 10,000 U.S.-listed stocks and ETFs, and surfaces what has done better on consistent outperformance, return for the risk taken, behavior in real market crashes and diversification. The result is a clearer view of where VGT stands in the market, and of the alternatives worth a closer look.

Period covered: VGT's full trading record, from January 2004 through September 2026. The crash tests reach back to 2000 using older funds and the S&P 500. All returns include reinvested dividends. Data as of October 20, 2026.

## Key findings

- **What you're buying:** 99% of VGT sits in technology, against 38% for the S&P 500.
- **Right now:** Over the past 6 months, VGT rose 19.1% against 9.1% for the S&P 500 and 11.2% for the Nasdaq 100. VGT has bounced back 27.3% from its April 2025 low after a 27.2% loss from December 2024 to April 2025 after falling while the S&P 500 fell 17.7%.
- **Fund or market?:** VGT rose 6.3% over the past 3 months, in line with the technology equity ETF XLK (State Street Technology Select Sector SPDR ETF), which rose 5.7%. The S&P 500 rose 3.9%. Its similar funds did not move as one over the past 3 months: IGV (iShares Expanded Tech-Software Sector ETF) rose 15.0%, while SOXX (iShares Semiconductor ETF) fell 4.5%.
- **Long term:** VGT turned $10,000 into $87,900 over the past decade, against $42,100 in the S&P 500. VGT's 10-year return of 779% puts it ahead of 99% of the ETFs with at least $100 million in assets with that much history. The S&P 500 returned 321%.
- **In a crash:** In the 2022 bear market, VGT fell 33.6%, against 24.5% for the S&P 500. That was more than XLK (State Street Technology Select Sector SPDR ETF, 32.4%) but less than SMH (VanEck Semiconductor ETF, 44.1%). VGT fell further than the S&P 500 in three of the last four sell-offs, including the 2022 bear market (33.6% against 24.5%).
- **Diversification:** VGT is more of the same, not a cushion: a correlation of 0.90 with the S&P 500 over 5 years and 0.89 with the total US market, more closely than 82% of ETFs with at least $100 million in assets.
- **Better options**
  - **Nearby categories and themes:** ADI (Analog Devices, semiconductors) was ahead of VGT in most short and long periods, though with much bigger swings (34.1% volatility against 26.0%).
  - **Whole market:** Few investments have done better on both counts: only 24 of the 3,633 stocks and funds worth at least $500 million earned more than VGT with less volatility over the past 5 years, among them WMT (Walmart), ABBV (AbbVie) and PM (Philip Morris International).

## How much would $10,000 in VGT have grown?

This chart tracks a hypothetical $10,000 investment in VGT over the past 22 years, with dividends reinvested, alongside the same amount in the S&P 500, investments that ended ahead of VGT over the same span and VGT's popular alternatives, among those that traded for the entire period.

- $10,000 invested in VGT at the end of September 2004 would have grown to $291,569 by September 2026, more than the $102,174 it would have become in SPY, an S&P 500 fund.
- Five of the eight other investments on the chart ended ahead of VGT, and SMH finished highest, at $644,463.

## VGT at a glance

This section summarizes the key facts about the fund, its returns over periods from one to ten years and the risk it has carried, with dividends reinvested throughout.

- VGT's deepest decline since it began trading in 2004 was 54.6%, from October 2007 to November 2008. It took 26 months from the low to climb back to its old high.
- Over 21 full calendar years, VGT's best was 2009, when it returned 61.6%, and its worst was 2008, when it lost 42.8%. It lost money in two of those years.
- VGT is 7.4% below its all-time high.

- Type: ETF, Technology (Asset Management)
- Trading since: January 30, 2004
- Assets: $178B
- Expense ratio: 0.09%
- Volatility (5 years): 26.0%; Sharpe ratio: 0.78
- Worst decline ever: −54.6%, from October 31, 2007 to November 20, 2008; back at its high by January 6, 2011

| Period | VGT total return |
| --- | --- |
| 1 month | −4.2% |
| 3 months | +6.3% |
| 6 months | +19.1% |
| year to date | +27.6% |
| 1 year | +26.7% |
| 3 years | +138% |
| 5 years | +133% |
| 10 years | +779% |

## VGT against the whole market

Where VGT ranks among every stock and fund, and what across the market has done better.

### How does VGT rank among all ETFs?

This section ranks VGT on return, volatility, risk-adjusted return and worst decline against every ETF worth at least $100 million with enough history.

- VGT's 10-year return ranks in the top 1% of the 958 ETFs with at least $100 million in assets with 10 years of history.
- VGT is among the more volatile ETFs: its price swings rank in the bottom 11% of the 1,560 ETFs with at least $100 million in assets, where the top is the calmest.

| Measure | VGT | Rank |
| --- | --- | --- |
| 1-year return | +26.7% | 227 of 2,485 (top 10%) |
| 3-year return | +138% | 92 of 1,949 (top 5%) |
| 5-year return | +133% | 60 of 1,560 (top 4%) |
| 10-year return | +779% | 8 of 958 (top 1%) |
| Volatility, 5 years | 26.0% | 1,392 of 1,560 (top 90%) |
| Sharpe ratio, 5 years | 0.78 | 371 of 1,560 (top 24%) |
| Worst decline, past 10 years | −35.1% | 352 of 951 (top 38%) |

### What has beaten VGT on both return and risk?

Each dot is an investment, placed by how much it earned a year over the past 5 years (higher is better) and how much its price swung, its volatility (further left is calmer).

- 15 stocks and nine ETFs worth at least $500 million sit in the green region: each earned more than VGT over the past 5 years with smaller price swings. That is fewer than 1% of the 3,633 screened. Few investments beat it on both counts.
- Among those with at least half VGT's swings, DXJ has the best return for its risk: 26.6% a year at 19.1% volatility, 27% less than VGT's 26.0%, and a Sharpe ratio (return above cash per unit of volatility) of 1.34 against 0.78 for VGT.

### Is there a better investment than VGT?

The table below lists investments that beat VGT over the past 5 years on at least one of these measures: a higher annual return with lower volatility, a higher annual return at similar volatility, a similar return with lower volatility, a higher Sharpe ratio with a smaller worst decline, a higher total return in most periods from 3 months to 10 years, or smaller losses in recent market crashes, and, for funds, the same exposure at a lower expense ratio.

- Among VGT's popular alternatives, SOXX was ahead of VGT in most short and long periods, though with much bigger swings (38.9% volatility against 26.0%).
- Looking beyond its popular alternatives, ADI (semiconductors) was ahead of VGT in most short and long periods, though with much bigger swings (34.1% volatility against 26.0%).
- Few investments have done better on both counts: only 24 of the 3,633 stocks and funds worth at least $500 million earned more than VGT with less volatility over the past 5 years, among them WMT, ABBV and PM.

The 15 strongest of 24 investments that beat VGT over the past 5 years, out of 3,633 stocks and funds worth at least $500 million.

| Investment | Group | Annual return (5 years) | Volatility | Sharpe | Worst decline (10 years) | 10Y return | Correlation with VGT | Better on |
| --- | --- | --- | --- | --- | --- | --- | --- | --- |
| VGT: Vanguard Information Technology ETF (this page) |  | +18.4% | 26.0% | 0.78 | −35.1% | +779% |  |  |
| [PM](https://easycompare.io/research/pm): Philip Morris International Inc. | Tobacco | +21.0% | 23.4% | 0.94 | −42.9% | +242% | 0.00 | Higher return, lower volatility; Higher return in most periods |
| [WMT](https://easycompare.io/research/wmt): Walmart Inc. | Discount Retail | +20.8% | 22.6% | 0.96 | −25.7% | +508% | 0.24 | Higher return, lower volatility; Higher Sharpe, smaller worst decline |
| [TRV](https://easycompare.io/research/trv): The Travelers Companies, Inc. | Property & Casualty Insurance | +22.4% | 22.3% | 1.02 | −46.3% | +347% | 0.02 | Higher return, lower volatility; Higher return in most periods |
| EWT: iShares MSCI Taiwan ETF | International Equity | +20.4% | 24.2% | 0.89 | −38.9% | +468% | 0.76 | Higher return, lower volatility; Higher return in most periods |
| FLTW: Franklin FTSE Taiwan ETF | Technology | +21.8% | 24.3% | 0.94 | −38.0% | — | 0.76 | Higher return, lower volatility; Higher return in most periods |
| ACT: Enact Holdings Inc. | Insurance | +20.5% | 24.3% | 0.89 | −20.2% | — | 0.14 | Higher return, lower volatility; Higher Sharpe, smaller worst decline |
| [MPLX](https://easycompare.io/research/mplx): MPLX Lp | Oil & Gas Midstream | +23.5% | 18.8% | 1.22 | −75.2% | +350% | 0.21 | Higher return, lower volatility |
| [ABBV](https://easycompare.io/research/abbv): AbbVie Inc. | Pharmaceuticals | +26.1% | 23.4% | 1.11 | −45.1% | +603% | 0.01 | Higher return, lower volatility |
| DXJ: WisdomTree Japan Hedged Equity Fund | International Equity | +26.6% | 19.1% | 1.34 | −39.1% | +428% | 0.43 | Higher return, lower volatility |
| [WELL](https://easycompare.io/research/well): Welltower Inc. | Healthcare REITs | +26.0% | 23.8% | 1.09 | −63.3% | +379% | 0.27 | Higher return, lower volatility |
| [TJX](https://easycompare.io/research/tjx): The TJX Companies, Inc. | Specialty Retail | +19.9% | 22.3% | 0.93 | −42.5% | +361% | 0.23 | Higher return, lower volatility |
| [BNY](https://easycompare.io/research/bny): Bank of New York Mellon Corp | Banks | +22.7% | 24.4% | 0.97 | −50.5% | +341% | 0.47 | Higher return, lower volatility |
| [WMB](https://easycompare.io/research/wmb): The Williams Companies, Inc. | Oil & Gas Midstream | +24.6% | 24.0% | 1.04 | −68.1% | +288% | 0.20 | Higher return, lower volatility |
| [COR](https://easycompare.io/research/cor): Cencora, Inc. | Health Care Distribution | +24.2% | 22.8% | 1.07 | −32.4% | +406% | 0.10 | Higher return, lower volatility |
| [MFC](https://easycompare.io/research/mfc): Manulife Financial Corporation | Life Insurance | +22.6% | 24.0% | 0.97 | −57.5% | +373% | 0.42 | Higher return, lower volatility |

## VGT against its popular alternatives

The investments people most often weigh against VGT, compared period by period and year by year.

### How do VGT's risk and return compare with its alternatives?

This map plots each investment's annual return over the past 5 years against its volatility, the size of its typical price swings.

- Only XLK was both more rewarding and calmer than VGT over the past 5 years, earning a higher annual return with lower volatility.
- Over the past 5 years, VGT returned 18.4% a year, more than the S&P 500's 12.7%, with higher volatility (26.0% against 17.1%).

### Has VGT consistently beaten its popular alternatives?

This section compares VGT with the investments people most often weigh against it, checking each one over eight periods from one month to ten years.

- Only one of the 24 popular alternatives, SOXX, outperformed VGT in at least 3 of 5 short-term and 2 of 3 long-term timeframes.
- XLK, TDIV and FTEC earned more for the risk they took than VGT (a higher Sharpe ratio) and fell less in their worst decline of the past 10 years.
- IYW outperformed VGT over all three long-term periods but in only one of the five short-term ones, so VGT has had the better of it lately.

| Investment | 1Y return | 3Y return | 5Y return | 10Y return | Periods ahead of VGT | Verdict | Sharpe |
| --- | --- | --- | --- | --- | --- | --- | --- |
| VGT: Vanguard Information Technology ETF (this page) | +26.7% | +138% | +133% | +779% |  |  | 0.78 |
| [SOXX](https://easycompare.io/research/soxx): iShares Semiconductor ETF | +71.2% | +234% | +237% | +1,392% | 3/5 short-term, 3/3 long-term | consistent | 0.82 |
| [SMH](https://easycompare.io/research/smh): VanEck Semiconductor ETF | +57.8% | +290% | +323% | +1,665% | 2/5 short-term, 3/3 long-term |  | 0.97 |
| PSI: Invesco Semiconductors ETF | +68.1% | +217% | +196% | +1,134% | 2/5 short-term, 3/3 long-term |  | 0.73 |
| IYW: iShares U.S. Technology ETF | +27.0% | +143% | +138% | +805% | 1/5 short-term, 3/3 long-term |  | 0.79 |
| XSD: State Street SPDR S&P Semiconductor ETF | +35.0% | +166% | +132% | +857% | 2/5 short-term, 2/3 long-term |  | 0.62 |
| IXN: iShares Global Tech ETF | +32.0% | +145% | +141% | +720% | 2/5 short-term, 2/3 long-term |  | 0.81 |
| [XLK](https://easycompare.io/research/xlk): State Street Technology Select Sector SPDR ETF | +29.3% | +131% | +143% | +767% | 3/5 short-term, 1/3 long-term |  | 0.82 |
| PTF: Invesco Dorsey Wright Technology Momentum ETF | +30.6% | +147% | +89.4% | +675% | 2/5 short-term, 1/3 long-term |  | 0.52 |
| XNTK: State Street SPDR NYSE Technology ETF | +26.2% | +168% | +119% | +728% | 0/5 short-term, 1/3 long-term |  | 0.68 |
| IGM: iShares Expanded Tech Sector ETF | +24.3% | +156% | +130% | +720% | 0/5 short-term, 1/3 long-term |  | 0.76 |
| RSPT: Invesco S&P 500 Equal Weight Technology ETF | +42.9% | +141% | +119% | +572% | 5/5 short-term, 0/3 long-term |  | 0.75 |
| FXL: First Trust Technology AlphaDEX Fund | +28.3% | +103% | +68.2% | +523% | 4/5 short-term, 0/3 long-term |  | 0.53 |
| TECB: iShares U.S. Tech Breakthrough Multisector ETF | +25.7% | +119% | +84.9% | — | 4/5 short-term, 0/3 long-term |  | 0.64 |
| QTEC: First Trust NASDAQ-100-Technology Sector Index Fund | +29.2% | +115% | +84.2% | +531% | 3/5 short-term, 0/3 long-term |  | 0.56 |
| IGV: iShares Expanded Tech-Software Sector ETF | −6.1% | +57.9% | +24.0% | +383% | 3/5 short-term, 0/3 long-term |  | 0.29 |
| XSW: State Street SPDR S&P Software & Services ETF | +3.9% | +71.5% | +14.1% | +293% | 3/5 short-term, 0/3 long-term |  | 0.24 |
| PSCT: Invesco S&P SmallCap Information Technology ETF | +37.7% | +92.2% | +64.9% | +284% | 3/5 short-term, 0/3 long-term |  | 0.49 |
| [QQQ](https://easycompare.io/research/qqq): Invesco QQQ Trust, Series 1 | +17.9% | +106% | +97.2% | +553% | 1/5 short-term, 0/3 long-term |  | 0.71 |
| [VUG](https://easycompare.io/research/vug): Vanguard Morningstar Growth ETF | +10.2% | +100% | +78.6% | +419% | 1/5 short-term, 0/3 long-term |  | 0.63 |
| TDIV: First Trust NASDAQ Technology Dividend Index Fund | +15.2% | +117% | +111% | +388% | 1/5 short-term, 0/3 long-term |  | 0.81 |
| [RSP](https://easycompare.io/research/rsp): Invesco S&P 500 Equal Weight ETF | +15.5% | +65.4% | +48.6% | +211% | 1/5 short-term, 0/3 long-term |  | 0.57 |
| FTEC: Fidelity MSCI Information Technology Index ETF | +27.0% | +139% | +135% | +763% | 0/5 short-term, 0/3 long-term |  | 0.79 |
| VOX: Vanguard Communication Services ETF | +1.7% | +83.7% | +37.4% | +137% | 0/5 short-term, 0/3 long-term |  | 0.40 |
| XLC: State Street Communication Services Select Sector SPDR ETF | −4.0% | +71.5% | +41.9% | — | 0/5 short-term, 0/3 long-term |  | 0.44 |

### How did VGT do year by year?

This table shows each investment's total return in every full calendar year since 2005, along with where VGT ranked among its popular alternatives each year.

- VGT finished ahead of the S&P 500 in 13 of its 21 full calendar years, and ahead of it in each of the last three.
- Ranked against its popular alternatives each year, VGT finished in the top quarter in three of 21 years and in the bottom quarter in no. In 2025, it ranked 16 of 25.
- Among its popular alternatives, SMH came out ahead of VGT most often, in 13 of the 21 years both traded.

| Year | VGT | SPY |
| --- | --- | --- |
| 2025 | +21.8% | +17.7% |
| 2024 | +29.3% | +24.9% |
| 2023 | +52.7% | +26.2% |
| 2022 | −29.7% | −18.2% |
| 2021 | +30.5% | +28.7% |
| 2020 | +46.0% | +18.3% |
| 2019 | +48.6% | +31.2% |
| 2018 | +2.4% | −4.6% |
| 2017 | +37.1% | +21.7% |
| 2016 | +13.7% | +12.0% |

## Risk and diversification

How VGT has fallen, how it held up in crashes beside the S&P 500 and its popular alternatives, and what moves independently of it.

### What were VGT's worst declines?

A drawdown is the decline from a peak to the lowest point before a new high.

- In four of VGT's five worst declines, the S&P 500 held up better over the same dates.
- The slowest recovery came after VGT fell 54.6% from October 2007 to November 2008; it did not regain that peak until January 2011, two years later.

| Decline | Peak | Low | Back at the high | SPY over the same dates | Market event |
| --- | --- | --- | --- | --- | --- |
| −54.6% | October 31, 2007 | November 20, 2008 | January 6, 2011 | −50.2% | 2008 financial crisis |
| −35.1% | December 27, 2021 | October 14, 2022 | November 20, 2023 | −24.2% | 2022 bear market |
| −31.8% | February 19, 2020 | March 23, 2020 | June 9, 2020 | −33.7% | Covid crash |
| −27.2% | December 16, 2024 | April 8, 2025 | June 24, 2025 | −17.7% |  |
| −23.7% | October 3, 2018 | December 24, 2018 | March 21, 2019 | −19.2% | late-2018 sell-off |

### How did VGT do in stock market crashes?

This section measures how far VGT, the S&P 500 and each alternative fell from peak to trough during every major market crash since 2000.

- Among its popular alternatives, TDIV held up best, falling less than VGT in five of the six crashes they both traded through.
- VGT began trading after the dot-com bust, but two of its popular alternatives lived through it. The mildest fall among them was XLK's 82.0%, against 47.5% for the S&P 500.
- VGT fell further than the S&P 500 in four of the nine crashes it has traded through. The clearest case was the 2022 bear market, when VGT fell 33.6% and the S&P 500 fell 24.5%.

| Crash | Dates | VGT fall | SPY fall |
| --- | --- | --- | --- |
| Dot-com bust | March 10, 2000 to October 9, 2002 | not trading | −47.5% |
| Global financial crisis | October 9, 2007 to March 9, 2009 | −54.6% | −55.2% |
| Flash crash | May 6, 2010 to May 7, 2010 | −2.1% | −1.5% |
| Euro debt crisis | July 22, 2011 to October 3, 2011 | −18.1% | −17.9% |
| China devaluation & oil rout | August 10, 2015 to February 11, 2016 | −16.4% | −12.8% |
| Volmageddon | February 2, 2018 to February 9, 2018 | −6.6% | −6.5% |
| Q4 2018 selloff | September 21, 2018 to December 24, 2018 | −23.7% | −19.3% |
| COVID crash | February 19, 2020 to March 23, 2020 | −31.8% | −33.7% |
| 2022 bear market | January 4, 2022 to October 12, 2022 | −33.6% | −24.5% |
| SVB / regional bank stress | March 8, 2023 to March 13, 2023 | −3.5% | −3.4% |

### How closely does VGT move with the S&P 500?

Upside capture measures how much of the S&P 500's gains an investment kept in the months the market rose, and downside capture how much of its losses it took in the months the market fell.

- Over the past 10 years, VGT captured 130% of the S&P 500's gains in rising months and 104% of its losses in falling months, with a beta of 1.22. It amplified the market's moves in both directions.
- Five of the 22 popular alternatives had a higher capture ratio (upside capture divided by downside capture) than VGT's 1.25, led by SMH, SOXX and PSI.

Measured over the past 10 years of monthly returns against SPY.

| Investment | Upside capture | Downside capture | Beta |
| --- | --- | --- | --- |
| VGT: Vanguard Information Technology ETF (this page) | 130% | 104% | 1.22 |
| [SOXX](https://easycompare.io/research/soxx): iShares Semiconductor ETF | 156% | 112% | 1.50 |
| [SMH](https://easycompare.io/research/smh): VanEck Semiconductor ETF | 159% | 108% | 1.46 |
| PSI: Invesco Semiconductors ETF | 150% | 110% | 1.54 |
| IYW: iShares U.S. Technology ETF | 131% | 104% | 1.21 |
| XSD: State Street SPDR S&P Semiconductor ETF | 151% | 133% | 1.65 |
| IXN: iShares Global Tech ETF | 127% | 102% | 1.20 |
| [XLK](https://easycompare.io/research/xlk): State Street Technology Select Sector SPDR ETF | 128% | 100% | 1.19 |
| PTF: Invesco Dorsey Wright Technology Momentum ETF | 125% | 103% | 1.38 |
| XNTK: State Street SPDR NYSE Technology ETF | 131% | 108% | 1.30 |
| IGM: iShares Expanded Tech Sector ETF | 131% | 110% | 1.24 |
| RSPT: Invesco S&P 500 Equal Weight Technology ETF | 125% | 114% | 1.24 |
| FXL: First Trust Technology AlphaDEX Fund | 120% | 111% | 1.22 |
| QTEC: First Trust NASDAQ-100-Technology Sector Index Fund | 124% | 113% | 1.26 |
| IGV: iShares Expanded Tech-Software Sector ETF | 112% | 114% | 1.10 |
| XSW: State Street SPDR S&P Software & Services ETF | 110% | 129% | 1.18 |
| PSCT: Invesco S&P SmallCap Information Technology ETF | 108% | 119% | 1.27 |
| [QQQ](https://easycompare.io/research/qqq): Invesco QQQ Trust, Series 1 | 118% | 102% | 1.13 |
| [VUG](https://easycompare.io/research/vug): Vanguard Morningstar Growth ETF | 113% | 108% | 1.13 |
| TDIV: First Trust NASDAQ Technology Dividend Index Fund | 109% | 108% | 1.07 |
| [RSP](https://easycompare.io/research/rsp): Invesco S&P 500 Equal Weight ETF | 92.0% | 107% | 1.01 |
| FTEC: Fidelity MSCI Information Technology Index ETF | 130% | 104% | 1.21 |
| VOX: Vanguard Communication Services ETF | 91.0% | 120% | 1.03 |

### What diversifies VGT?

Correlation measures how closely two investments move together, on a scale from 1 (in lockstep) through 0 (unrelated) to -1 (in opposite directions).

- Moving a fifth of the money in VGT into GLD would have cut the portfolio's volatility by 18% over the past 5 years and raised its annual return (+20.9% for VGT alone, +21.1% for the mix).
- Among large ETFs, LVHI, DXJ and EMLP have moved largely independently of VGT over the past 5 years, with correlations of 0.43 or lower, and each still earned a positive 5-year return.
- Among large stocks, CAH, MCK and MPC have moved largely independently of VGT over the past 5 years, with correlations of 0.16 or lower, and each still earned a positive 5-year return.

| Investment | Correlation with VGT | 5Y return | Volatility | Sharpe | Rose in VGT's 2 down years |
| --- | --- | --- | --- | --- | --- |
| LVHI: Franklin International Low Volatility High Dividend Index ETF | 0.26 | +119% | 11.1% | 1.48 | 1 of 2 |
| DXJ: WisdomTree Japan Hedged Equity Fund | 0.43 | +225% | 19.1% | 1.34 | 1 of 2 |
| EMLP: First Trust North American Energy Infrastructure Fund | 0.32 | +101% | 14.5% | 1.04 | 1 of 2 |
| EWP: iShares MSCI Spain ETF | 0.35 | +140% | 20.3% | 0.97 | 0 of 2 |
| [GLD](https://easycompare.io/research/gld): SPDR Gold Shares | 0.03 | +126% | 18.9% | 0.96 | 1 of 2 |
| [XLE](https://easycompare.io/research/xle): State Street Energy Select Sector SPDR ETF | 0.03 | +177% | 25.5% | 0.93 | 1 of 2 |
| AMLP: Alerian MLP ETF | 0.21 | +111% | 18.9% | 0.89 | 1 of 2 |
| EFV: iShares MSCI EAFE Value ETF | 0.38 | +89.0% | 15.9% | 0.88 | 0 of 2 |

## Common questions

### What was VGT's worst drawdown?

VGT's deepest decline since it began trading in 2004 was 54.6%, from October 2007 to November 2008. It took 26 months from the low to climb back to its old high. Because VGT launched in January 2004, that record does not include the dot-com bust.

### What were VGT's best and worst years?

Over 21 full calendar years, VGT's best year was 2009, when it returned 61.6%. Its worst was 2008, with a return of -42.8%.

### Is there a better investment than VGT?

Among VGT's popular alternatives, SOXX was ahead of VGT in most short and long periods, though with much bigger swings (38.9% volatility against 26.0%). Looking beyond its popular alternatives, ADI (semiconductors) was ahead of VGT in most short and long periods, though with much bigger swings (34.1% volatility against 26.0%).

### Is VGT more volatile than the S&P 500?

Yes. VGT's volatility over the past 5 years was 26.0%, 1.5 times the S&P 500's 17.1%. Volatility measures how widely returns swing around their average: in roughly two years out of three, VGT's return lands within 26.0% of its average, either way. The higher it is, the rougher the ride and the harder it is to hold through a slump.

### What is VGT's Sharpe ratio?

VGT's Sharpe ratio over the past 5 years was 0.78, against 0.79 for the S&P 500, so VGT earned less for each unit of risk than an index fund did. The Sharpe ratio is the return earned above cash for each unit of volatility: two investments with the same return are not equal if one got there with far bigger swings.

### How correlated is VGT with the S&P 500?

Over the past 5 years, VGT's monthly returns had a correlation of 0.90 with the S&P 500. Correlation runs from 1 (moving in lockstep) through 0 (unrelated) to −1 (moving in opposite directions). They move almost in lockstep, so holding both adds little diversification. In the table, the correlation column measures each option against VGT instead: the lower it is, the more that option would diversify a VGT holding.

### What are the best alternatives to VGT?

Of the 24 popular alternatives we compared, one outperformed VGT in at least 3 of 5 short-term and 2 of 3 long-term timeframes, with dividends reinvested: SOXX.

### Did VGT outperform the S&P 500?

VGT finished ahead of the S&P 500 (SPY) in 13 of 21 full calendar years. In 2025, it returned +21.8%, against +17.7% for the index.

### How did VGT do in stock market crashes?

VGT fell less than the S&P 500 (SPY) in two of the nine major crashes it has traded through, and further in four. The clearest case was the 2022 bear market, when VGT fell 33.6% and the S&P 500 fell 24.5%.

### What diversifies VGT?

These had a low correlation with VGT over the past 5 years and still earned a positive 5-year return: among large ETFs, LVHI (correlation 0.26), DXJ (correlation 0.43) and EMLP (correlation 0.32); among large stocks, CAH (correlation 0.16), MCK (correlation 0.00) and MPC (correlation 0.11). A correlation near zero means the two have moved largely independently.

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## Explore further

- Full page with charts: https://easycompare.io/research/vgt
- All research pages: https://easycompare.io/llms.txt
- Compare the entire market against VGT live: https://betterthanspy.com/?b=VGT&utm_source=easycompare&utm_medium=research