VGT — Vanguard Information Technology ETF
Vanguard · Expense Ratio: 0.1% · Sectors · roughly average for its Sectors category
Key Facts
| Ticker | VGT |
| Full Name | Vanguard Information Technology ETF |
| Provider | Vanguard |
| Expense Ratio | 0.1% |
| Category | Sectors |
| Assets Under Management | $85B |
| Inception Year | 2004 (22 years ago) |
| Number of Holdings | 320 |
| Dividend Yield | ~0.5% (low) |
| Top Holdings | AAPL, MSFT, NVDA |
What Is VGT?
VGT, managed by Vanguard, launched in 2004, is a major ETF with deep liquidity and tight bid-ask spreads in the Sectors category. Sector-specific ETF targeting a particular industry like technology, healthcare, or energy. With $85B in assets under management, it benefits from deep institutional liquidity and tight bid-ask spreads.
VGT in a FIRE Portfolio
This fund serves as a satellite position — adding targeted exposure to sectors within a FIRE portfolio built around a broad-market core.
Satellite holdings typically make up 5-20% of your portfolio. Sector bets amplify risk — limit any single sector to 5-10% of your portfolio. The rest should stay in broad-market core holdings.
Cost Analysis: How VGT's 0.1% Fee Affects Your FIRE Timeline
At 0.1%, VGT is moderately priced. Annual fees on a $100K investment: $100. Over 30 years, the fee drag shaves approximately 0.6% off your total returns. For a $1M FIRE portfolio, that's about $10,000 in cumulative fees — noticeable but reasonable for most investors.
Dividend Income Potential
With a low dividend yield of approximately 0.5%, here's what VGT could generate in annual income at different portfolio sizes:
| Portfolio Value | Annual Dividend Income | Monthly Income |
|---|---|---|
| $100,000 | $500/year | $42/month |
| $250,000 | $1,250/year | $104/month |
| $500,000 | $2,500/year | $208/month |
| $1,000,000 | $5,000/year | $417/month |
Frequently Asked Questions About VGT
What is the expense ratio for VGT?
VGT has an expense ratio of 0.1%. This is moderately priced — on a $100K portfolio, annual fees are $100. Roughly average for its sectors category.
Is VGT good for a FIRE portfolio?
This fund serves as a satellite position — adding targeted exposure to sectors within a FIRE portfolio built around a broad-market core. Its 0.1% expense ratio is moderately priced for the Sectors category.
How does the 0.1% fee affect long-term returns?
At 0.1%, you'll pay $100/year per $100K invested. Over 30 years, fees reduce total returns by approximately 0.6%. Use the embedded calculator below to model the exact impact on your specific portfolio.
Similar ETFs in Sectors
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- XLF — Financial Select Sector SPDR (0.1% · Satellite Position)
- XLI — Industrial Select Sector SPDR (0.1% · Satellite Position)
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