For investors who want to look beyond investing in benchmark index funds, the Vanguard Information Technology ETF (NYSE:VGT) has capitalized heavily on the tech wave to deliver staggering 25% annual returns over the past decade, easily outperforming broad market benchmarks.
The Tech Outperformance Historically, large-cap U.S. stocks have generated an average annual return of around 10%.
Even though the Vanguard S&P 500 ETF (NYSE:VOO) has posted a very strong 15% annual return over the last decade—weathering both the 2020 pandemic and the 2022 bear market—VGT has completely eclipsed those figures.
As the data shows, it has returned roughly 25% annually.
This massive growth is primarily fueled by an artificial intelligence (AI) boom that has turned technology stocks into one of the broader economy's most powerful earnings engines.
