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ETF Comparison

VGT vs VTI: Which Is the Better Pick in 2026?

A head-to-head comparison of Vanguard Information Technology ETF and Vanguard Morningstar Total Stock Market ETF covering yield, cost, risk, and income potential.

Updated September 30, 2026

How these figures are calculated: methodology.

Best for

  • VGTInvestors who want broad equity exposure.
  • VTIInvestors who want higher current income (1.02% vs 0.47% for VGT).

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Visual comparison

Key metrics

Projected income on $10K

Projections assume the current yield and share price remain constant. Actual results will vary.

Total returns

100% reinvested · ex-date convention. Period returns use this fixed assumption, independent of chart settings. YTD and 1Y are cumulative period returns; 3Y, 5Y, and 10Y are annualized. The shared Since-start window is annualized only when it covers at least one year.

VGT has outpaced VTI over the trailing twelve months, posting a 35.88% total return against 15.72%. The lead holds up over 10 years too: VGT has compounded at 24.79% a year, against 14.79% for VTI. VTI has been the steadier holding, though — annualized volatility of 15.4% against 24.6% for VGT. Figures are total returns: price change plus every distribution reinvested.

Total return and risk statistics by fund. Each row is one fund; each column is one period or statistic.
SymbolYTD cumulative1Y cumulative3Y annualized5Y annualized10Y annualizedSince Jan 2004Volatility Sharpe Sortino Max drawdown
VGT33.44%35.88%34.69%20.79%24.79%15.23%24.6%1.031.48-27.2%
VTI12.23%15.72%22.42%12.31%14.79%10.82%15.4%1.031.50-19.3%

Total return with all distributions reinvested on the ex-dividend date (a modeling convention, not the cash-settlement date), split-adjusted, as of September 30, 2026. YTD and 1Y are cumulative period returns; 3Y, 5Y, and 10Y are annualized. The shared Since-start window is annualized only when it covers at least one year. “Since Jan 2004” measures every fund from January 30, 2004 — the start of shared available history — so all funds share one comparison window. Volatility is the annualized standard deviation of daily total returns over the trailing 3 years. Sharpe and Sortino divide the annualized return in excess of the risk-free rate by, respectively, that volatility and the downside deviation (both over the trailing 3 years) — higher is better. Max drawdown is the largest peak-to-trough total-return decline over the same window — shallower is better.

Side-by-side snapshot

Side-by-side snapshot. Each row is one metric; each column is one fund.
MetricVGTVTI
Full nameVanguard Information Technology ETFVanguard Morningstar Total Stock Market ETF
IssuerVanguardVanguard
Underlying indexMSCI US Investable Market Index/Information Technology 25/50Morningstar US Total Market Index
Last Close$125.67 as of September 30, 2026$374.24 as of September 30, 2026
Distribution rate0.47%1.02%
Trailing 12-month yield0.38%1.05%
Distribution Safety Score™ 93100
Safety-Adjusted Yield 0.44%1.02%
Expense ratio0.09%0.03%
AUM$155B$700B
Distribution frequencyQuarterlyQuarterly
ObjectiveSeeks to track the performance of the MSCI US Investable Market Index/Information Technology 25/50, an index made up of stocks of large, mid-size, and small U.S. companies within the information technology sector, including technology software and services, hardware and equipment, and semiconductor manufacturers.Seeks to track the Morningstar US Total Market Index.
Asset classEquityEquity
Inception date01/26/200405/24/2001
Beta1.491.0379
Last dividend$0.1465$0.9555 payable today
Ex-dividend date09/23/202609/28/2026

Bottom lineChoose VGT if you want broad equity exposure. Choose VTI if you want higher current income (1.02% vs 0.47% for VGT).

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Vanguard
ETFs116
Total AUM$4677B

ETFs and AUM reflect what Dividend Vision tracks — the issuer's full lineup may be larger.

Vanguard is one of the largest and most established ETF issuers, known for low-cost, broadly diversified fund offerings built on passive indexing principles. Their lineup spans multiple asset classes and strategies, including core equity and bond index funds, dividend-focused portfolios, ESG-screened options, factor-based strategies, sector exposure, target-date retirement funds, and international investments across developed and emerging markets. The platform is characterized by its emphasis on accessibility and cost efficiency across a comprehensive range of fund families, serving both individual investors seeking broad market exposure and those pursuing specific income, sustainability, or thematic objectives.

See our curated list of related YouTube videos on VGT and VTI.

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Quick verdict

VGT (Vanguard Information Technology ETF) and VTI (Vanguard Morningstar Total Stock Market ETF) are both quarterly-pay dividend ETFs, but they take different approaches.

VTI offers the higher yield at 1.02% vs 0.47% for VGT. A higher yield means more current income per dollar invested, though it may come with different risk characteristics.

VTI is cheaper with an expense ratio of 0.03% compared to 0.09%.

They have different reference exposures: VGT is linked to MSCI US Investable Market Index/Information Technology 25/50 while VTI is linked to Morningstar US Total Market Index, which means their performance drivers differ.

VTI is the larger fund by assets ($700B), but assets alone do not establish trading costs or liquidity.

Deep dive

Yield & income

On a $10,000 investment, VGT would generate roughly $11.75 cash per distribution, while VTI would produce $25.50 cash per distribution, at current distribution rates. Both pay quarterly distributions.

VGT yield0.47%
VTI yield1.02%
Cash diff on $10K$13.75

Cost & efficiency

Over 10 years on $10,000, VGT would cost approximately $90 in fees vs $30 for VTI (simplified, not compounded). The $60.00 difference may be offset by yield or performance.

VGT ER0.09%
VTI ER0.03%

Strategy & risk

VGT tracks MSCI US Investable Market Index/Information Technology 25/50 with an index approach, while VTI tracks Morningstar US Total Market Index. Beta is 1.49 for VGT and 1.0379 for VTI, making VTI the less volatile of the two by this measure.

VGT beta1.49
VTI beta1.0379

Fund details

VGT is managed by Vanguard (launched 01/26/2004) with $155B in assets. VTI is managed by Vanguard (launched 05/24/2001) with $700B in assets.

VGT AUM$155B
VTI AUM$700B
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Frequently asked questions

What is the current distribution rate for VGT and VTI?

VGT currently distributes 0.47% and VTI 1.02%, based on fund data updated September 2026. Distribution rate moves with both the payout and the share price, so check the as-of date before relying on either figure.

Is VGT or VTI better for dividend income?

It depends on your goals. VTI currently offers the higher distribution yield, which means more income per dollar invested. However, a lower-yield fund may offer better total return or lower volatility. Consider your time horizon and risk tolerance.

What is the difference between VGT and VTI?

VGT (Vanguard Information Technology ETF) tracks MSCI US Investable Market Index/Information Technology 25/50 with an index approach, while VTI (Vanguard Morningstar Total Stock Market ETF) tracks Morningstar US Total Market Index. They are issued by Vanguard and Vanguard respectively.

Can I hold both VGT and VTI?

Yes — nothing prevents holding both. Whether the combination actually diversifies depends on how much the underlying exposures overlap, which isn't fully measurable from the data on this page; review each security's holdings, sector, and strategy before treating them as complementary.

Is VGT or VTI safer?

By Dividend Vision's Distribution Safety Score — a rules-based 0–100 estimate of how resilient a distribution looks, where higher is safer — VTI scores 100, VGT scores 93, so VTI's payout currently looks the more resilient of the two. VTI has also shown lower price volatility (beta 1.04 vs 1.49 for VGT). No score makes an investment risk-free — treat this as a screening signal, not a guarantee.

Which has lower fees, VGT or VTI?

VGT has an expense ratio of 0.09% while VTI charges 0.03%. Lower fees mean more of your investment returns stay in your pocket over time.

How much income does $10,000 in VGT vs VTI generate?

At current rates, $10,000 in VGT would generate roughly $11.75 cash per distribution ($47.00 annually). The same in VTI would produce about $25.50 cash per distribution ($102.00 annually).

Which has performed better historically, VGT or VTI?

VGT has outpaced VTI over the trailing twelve months, posting a 35.88% total return against 15.72%. The lead holds up over 10 years too: VGT has compounded at 24.79% a year, against 14.79% for VTI. VTI has been the steadier holding, though — annualized volatility of 15.4% against 24.6% for VGT. Figures are total returns: price change plus every distribution reinvested. Past performance does not guarantee future results.

More comparisons to explore

VGT vs VTI — at a glance

Generated September 26, 2026.

Overview

VGT and VTI are both broad equity index ETFs from Vanguard, but they differ fundamentally in scope. VGT tracks a technology-sector-specific index and holds only information technology stocks—software, hardware, semiconductors, and related companies. VTI tracks the entire U.S. stock market across all sectors, including technology but also financials, healthcare, industrials, consumer, energy, and utilities. The key distinction is concentration: VGT provides pure-play tech exposure; VTI provides market-cap-weighted diversification across the full economy.

How they differ

VGT's biggest difference is its sector focus. It holds only technology stocks, making it a concentrated bet on one industry; VTI holds the entire market and treats technology as one component of a diversified portfolio. That concentration drives a second major difference in risk and return characteristics: VGT's beta is 1.49, meaning it moves roughly 50% more than the market, while VTI's beta of 1.0379 moves with the market as a whole. VTI is substantially larger, with $700B in assets versus $155B.

Who each is best for

  • VGT: Fits investors with a bullish conviction on technology's long-term growth and a high risk tolerance who want to overweight the sector beyond its market-cap weighting. Also suits those building a multi-sector satellite strategy where tech is the chosen concentrated position.
  • VTI: Fits investors seeking a single-fund core holding that captures broad U.S. market exposure with minimal overlap risk, lower volatility, and tax-efficient diversification across sectors and market caps.

Key risks to know

  • Sector concentration in VGT: Technology accounts for a large portion of VTI's holdings as well, so both funds have correlated tech exposure; however, VGT's 100% allocation to the sector means it has no diversifier if technology underperforms for an extended period.
  • Cyclicality and valuation sensitivity: Information technology stocks are highly sensitive to interest-rate and growth-expectations changes. VGT's 1.49 amplifies these swings, meaning sharp market downturns in tech (such as those tied to Fed tightening or recession fears) will hit VGT significantly harder than the broader market.
  • Dividend erosion risk in VGT: The technology sector historically pays lower dividends than the broader market, reflected in VGT's 0.47% yield. Investors seeking high current income may face reinvestment drag or disappointment if they rely on VGT for steady payouts.
  • Overlap in core holdings: Both funds hold the largest U.S. technology companies (Apple, Microsoft, Nvidia, etc.), so their performance correlates strongly during tech rallies and selloffs. Building a portfolio with both may create unintended double-exposure to mega-cap tech rather than genuine diversification.

Bottom line

If you want to overweight technology while accepting roughly 50% more volatility than the overall market, VGT offers focused sector exposure. If you prefer a single, all-encompassing U.S. equity foundation with sector balance and lower turnover, VTI delivers that with a lower expense ratio and higher yield. Past performance of either fund does not predict future results.

AI-generated analysis for educational purposes only. Verify important details independently; past performance does not guarantee future results.

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The metrics behind this comparison, explained in the Academy.

How covered-call funds work How to read a fund's stats The covered-call opportunity cost

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These comparisons follow the Dividend Vision methodology.