Based on historical average annual returns, this tech ETF could deliver strong gains for the next 20 years.
Based on historical average annual returns, this tech ETF could deliver strong gains for the next 20 years.
Tech stocks have been among the best investments for the past 15 years or more. The best tech exchange-traded funds (ETFs) put your money into innovative, fast-growing companies like the ones building the future of artificial intelligence (AI). But some investors are getting nervous about AI stocks. What does the future hold for tech ETFs? Can the recent run of strong returns really keep going?
The Vanguard Information Technology ETF (VGT +0.25%) is one of the best tech ETFs. It has a 22-year track record of 15.03% annualized returns since its inception in January 2004.
Let's look at what could happen for VGT investors if this tech ETF keeps delivering that same 15.03% average annual return for the next 20 years.
VGT: 20 (more) years of 15.03% annualized returns
There are no guarantees that any stock, sector, or ETF will continue to deliver as it has. The tech sector could enter a major sell-off or long-lasting bear market. VGT might underperform the S&P 500 index at some point.
VGT Vanguard Information Technology ETF
$120.64+$0.31 (+0.25%)
NYSEMKT · As of 1:58 PM ET 10/20/26
But for this example, let's assume that the Vanguard Information Technology ETF delivers 15.03% average annual returns for the next 20 years. If you invest $10,000 today in VGT and it compounds at 15.03% for the next two decades, after 20 years you'll have $164,521.
Averytin News Financial update.