Single technology ETF with strong past growth and heavy reliance on a few mega cap innovators
Report created on May 22, 2026Risk profile
5/7
Diversification profile
1/5
Positions
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VG Vanguard Information Technology Index Fund ETF Shares
VGT - US92204A7028 100.00%
This portfolio is extremely simple: it holds a single exchange traded fund that tracks a broad technology index, so 100% of the exposure sits in one product. Simplicity like this makes it easy to understand what drives returns, because every move comes from the same basket. At the same time, the diversification score of 1/5 highlights that all risk is tied to one theme and one fund provider. This structure can work well if the chosen area does well, but it also means there is no internal balance from other sectors or asset types. The outcome is a focused, growth‑oriented equity portfolio with very little built‑in cushioning.
Growth
Historically, the portfolio’s performance has been very strong. A $1,000 investment grew to about $9,227 over roughly ten years, giving a compound annual growth rate (CAGR) of 24.97%. CAGR is like an average yearly “speed” over the whole journey, smoothing out bumps. This has beaten both the US market and global market by a wide margin over the period. The price to pay has been sharp swings: the max drawdown was about -35%, meaning more than a third of value temporarily disappeared. That fall and recovery timeline shows that big declines can take years to fully bounce back even in strong long‑term trends.
Projection
The forward projection uses a Monte Carlo simulation, which is like running thousands of “what if” market paths based on historical ups and downs. It doesn’t predict the future but shows a range of plausible outcomes. The median result turns $1,000 into about $2,692 over 15 years, roughly aligning with an annualized simulated return of 7.93%. The range is wide: in 90% of simulations the ending value sits between about $1,001 and $7,550. This spread shows that tech‑heavy portfolios can go many different ways, from barely breaking even after inflation to multiplying several times. As always, these simulations lean on past patterns, which may not repeat.
Asset classes
- Stocks 100%
All of the portfolio is in stocks, with 0% in bonds, cash, or alternatives. That makes it a pure equity portfolio, aligned with the “Growth” risk label and a 5/7 risk score. Equities are typically the main driver of long‑term returns but can also fall quickly in market stress. Having 100% in one asset class usually means more sensitivity to economic cycles, interest rates, and sentiment than a mixed stock‑bond blend. Compared with broader benchmarks that include more defensive assets, this structure is likely to show higher volatility day to day. The benefit is clear exposure to equity upside; the trade‑off is limited buffering when markets turn.
Sectors
- Technology 98%
Sector exposure is overwhelmingly tilted to technology, with about 98% in that single area. This is much more concentrated than broad market benchmarks, where tech is a large but not dominant slice. Tech‑heavy portfolios often benefit when innovation stories, digital adoption, and growth themes are rewarded by investors, but they can suffer during periods of rising interest rates or when markets suddenly favor more traditional, cash‑rich businesses. The focused sector profile means results will be driven by how the technology industry as a whole performs rather than by a mix of unrelated trends. This is a clear, intentional concentration rather than a diversified sector mix.
Regions
- North America 99%
Geographically, the portfolio is almost entirely tied to North America, at about 99%. That lines up with where many of the world’s biggest technology companies are listed, but it also means the portfolio is highly connected to one region’s economic and policy environment. Compared with global benchmarks that spread more across multiple regions, this concentration can amplify the impact of US‑centric events like regulatory changes or shifts in the dollar. On the positive side, many North American tech firms earn revenue globally, so some business diversification exists beneath the surface. Still, from a stock market perspective, this is primarily a single‑region exposure.
Market capitalization
- Mega-cap 54%
- Large-cap 26%
- Mid-cap 11%
- Small-cap 7%
- Micro-cap 3%
By market capitalization, more than half of the portfolio is in mega‑cap companies, with additional weight in large caps and smaller portions in mid, small, and micro caps. Market cap simply measures company size in the stock market, and mega caps are the giants. This structure is fairly typical for cap‑weighted tech indices and means the biggest firms drive most of the results. The presence of smaller companies does add a bit of growth‑oriented spice, as they can move more sharply both up and down. Overall, the blend leans toward stability and scale at the top, with a modest tail of higher‑volatility smaller names in the background.
True holdings
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NV NVIDIA Corporation 18.59%
Part of fund(s):- Vanguard Information Technology Index Fund ETF Shares
-
AA Apple Inc 14.81%
Part of fund(s):- Vanguard Information Technology Index Fund ETF Shares
-
MS Microsoft Corporation 10.02%
Part of fund(s):- Vanguard Information Technology Index Fund ETF Shares
-
AV Broadcom Inc 4.60%
Part of fund(s):- Vanguard Information Technology Index Fund ETF Shares
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MU Micron Technology Inc 2.62%
Part of fund(s):- Vanguard Information Technology Index Fund ETF Shares
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AM Advanced Micro Devices Inc 2.58%
Part of fund(s):- Vanguard Information Technology Index Fund ETF Shares
-
IN Intel Corporation 1.96%
Part of fund(s):- Vanguard Information Technology Index Fund ETF Shares
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CS Cisco Systems Inc 1.65%
Part of fund(s):- Vanguard Information Technology Index Fund ETF Shares
-
LR Lam Research Corp 1.48%
Part of fund(s):- Vanguard Information Technology Index Fund ETF Shares
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AM Applied Materials Inc 1.43%
Part of fund(s):- Vanguard Information Technology Index Fund ETF Shares
- Top 10 total 59.74%
Looking through to the ETF’s top holdings, a handful of companies dominate effective exposure. NVIDIA accounts for about 18.6%, Apple about 14.8%, and Microsoft around 10%. Together, just these three names make up well over 40% of the portfolio slice we can see. Because all exposure is via a single ETF, there’s no cross‑fund overlap confusion: concentration is straightforward. It’s worth noting that this overlap view only covers about 60% of the ETF via top‑10 data, so overall concentration is somewhat higher than the numbers alone suggest. In practice, a few mega‑cap innovators strongly shape both returns and risk here.
Factors
On factor exposure, the standout tilt is very low value at 14%, meaning the portfolio leans strongly away from traditional “cheap versus earnings” stocks. Factor exposure is like checking which traits your holdings share, such as being inexpensive, high quality, or fast trending. Tech firms here are priced more like growth or innovation stories than bargain plays. Yield and low volatility factors are also somewhat low, reflecting modest dividends and more pronounced price swings than the broader market. Size, momentum, and quality look neutral, so there is no strong tilt toward smaller, fast‑moving, or especially defensive stocks overall; the key trait is expensive, growth‑oriented tech.
Risk contribution
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Vanguard Information Technology Index Fund ETF Shares
Weight: 100.00% 100.0%
Risk contribution shows how much each holding adds to the portfolio’s overall ups and downs, and here the single ETF naturally contributes 100% of risk. Risk contribution can differ from weight when some holdings are more volatile than others, but with only one position, the relationship is one‑to‑one. The “risk/weight” ratio of 1.00 simply confirms that nothing else is present to either magnify or dilute its impact. This makes the portfolio’s behavior very easy to attribute: any volatility or drawdowns stem directly from that tech index. It’s a clean design, but it leaves no internal offsets from other styles or asset types.
Dividends
- Vanguard Information Technology Index Fund ETF Shares 0.30%
- Weighted yield (per year) 0.30%
Dividend yield for the ETF is very low at about 0.30%, which is typical for tech‑focused growth portfolios. Dividend yield is the income paid out each year as a percentage of price, like rent from a property. Here, income plays a minor role in total return: most of the historical growth has come from rising share prices rather than cash distributions. This approach can work well when companies reinvest profits into new projects, but it means the portfolio doesn’t naturally generate much regular cash flow. For someone comparing income‑heavy and growth‑heavy approaches, this portfolio clearly falls on the growth side of that spectrum.
Ongoing product costs
- Vanguard Information Technology Index Fund ETF Shares 0.10%
- Weighted costs total (per year) 0.10%
The total expense ratio (TER) of 0.10% is impressively low, especially for a sector‑specific ETF. TER is the annual fee charged by the fund, expressed as a percentage of assets, and it quietly chips away at returns over time. Here, costs are well aligned with best practices in low‑cost indexing, leaving more of the portfolio’s performance in the investor’s pocket. Over long periods, even small fee differences can compound into meaningful amounts, so starting from a 0.10% base is a solid structural advantage. In short, the cost side of this setup is a clear strength and supports better long‑term compounding.
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