Had You Bought This Magnificent Vanguard ETF at the Start of January, You'd Be Crushing the S&P 500 in 2026

12 hours ago 2

Anthony Di Pizio, The Motley Fool

Tue, July 14, 2026 astatine 10:37 AM CDT 5 min read

Despite immoderate caller volatility, the benchmark S&P 500 has returned 10.3% truthful acold successful 2026. But had an capitalist bought the Vanguard Information Technology ETF (NYSEMKT: VGT) connected Jan. 1 instead, they would beryllium sitting connected a overmuch bigger summation of 23.3%.

The exchange-traded money (ETF) invests exclusively successful stocks from the accusation exertion sector, which is location to respective trillion-dollar giants astatine the halfway of the artificial quality (AI) boom. Many of those stocks person consistently outperformed the broader marketplace implicit the past fewer years, fueling blistering returns successful this Vanguard ETF.

Missed Nvidia successful 2009? This Rare Signal Is Flashing Again. In 2009, a "Double Down" awesome flashed for a little-known chipmaker called Nvidia. For the archetypal clip successful years, that aforesaid "Total Conviction" awesome is flashing for a institution 1/100th the size of Nvidia. Continue »

Will the beardown returns continue, oregon are prospective investors present precocious to the party?

A integer render of a bull pushing wealth up the slope of a roller coaster.

This ETF has implicit fractional of its assets parked successful 5 trillion-dollar stocks

There are presently 12 American companies valued astatine $1 trillion oregon more, and 5 of them are successful the accusation exertion sector:

Nvidia (NASDAQ: NVDA): $5.1 trillion.
Apple (NASDAQ: AAPL): $4.7 trillion.
Microsoft (NASDAQ: MSFT): $2.9 trillion.
Broadcom (NASDAQ: AVGO): $1.9 trillion.
Micron Technology (NASDAQ: MU): $1.05 trillion.

The Vanguard Information Technology ETF holds 323 stocks, but the 5 supra unsocial relationship for a whopping 50.6% of its portfolio value, truthful they person a large power connected its performance.

Data source: Vanguard. Portfolio weightings are close arsenic of May 31, 2026, and are taxable to change.

Four of those 5 stocks person outperformed the S&P 500 this year, which helps explain why the Vanguard ETF is beating the index.

Nvidia, Broadcom, and Micron are apt to proceed performing good arsenic request inactive importantly outweighs proviso for information halfway chips and components captious to processing AI models. Microsoft is simply a person successful AI bundle and AI unreality services, and portion its banal is lagging the battalion close now, it's truthful attractively valued that I deliberation a betterment is lone a substance of time.

But I besides privation to radiance a airy connected immoderate of the stocks sitting conscionable extracurricular the Vanguard ETF's top-five holdings. Advanced Micro Devices, Intel, and Lam Research are besides cardinal to the AI infrastructure boom, and their respective stocks person each much than doubled this year.

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