{
  "id": 16337491,
  "title": "Vanguard Morningstar Growth ETF vs. Vanguard Information Technology ETF: Here's Which One I Believe Is the Clear Long-Term Winner.",
  "url": "https://urgent.news/2026/10/24/vanguard-morningstar-growth-etf-vs-vanguard-information-technology",
  "topic": "finance",
  "section": "Finance & Markets",
  "published": "2026-10-24T14:11:00.000Z",
  "source": {
    "name": "Motley Fool",
    "slug": "motley-fool",
    "url": "https://www.fool.com/investing/2026/10/24/vug-vgt-clear-long-term-winner/?source=iedfolrf0000001"
  },
  "original_language": "en",
  "account": "Investing in individual stocks demands time and analytical skills, making it a challenging proposition for many. An alternative is to invest in exchange-traded funds (ETFs), which offer exposure to various asset classes, sectors, geographies, and themes. Two prominent ETFs are the Vanguard Morningstar Growth ETF (VUG) and the Vanguard Information Technology ETF (VGT). Both have shown strong performance in the past. However, one stands out as the clear long-term winner.\n\nThe Vanguard Morningstar Growth ETF enables investors to own the biggest growth stocks in America. It tracks the Morningstar U.S. Large Cap Growth Index, which selects large U.S. companies with rapid sales and earnings growth. The fund includes 135 different businesses, with Nvidia, Apple, and Microsoft as the top three holdings, accounting for 63% of the ETF's total assets. The technology sector comprises 72% of the ETF's holdings.\n\nOn the other hand, the Vanguard Information Technology ETF provides more targeted exposure to the U.S. technology sector. It follows the MSCI US Investable Market Information Technology 25/50 Index, consisting of tech companies of all sizes. The fund holds 318 stocks, with Nvidia, Apple, and Microsoft leading the pack at 45% of the ETF's holdings. Semiconductor stocks are the standout industry, making up 38% of the fund.\n\nWhen evaluating cost, the Vanguard Morningstar Growth ETF has an edge with an expense ratio of 0.03%, which is one-third the price of the Vanguard Information Technology ETF (0.09%). Performance is a crucial factor for investors, as it demonstrates the wealth-building potential over time. Over the past decade, the Vanguard Morningstar Growth ETF achieved a total return of 420%, surpassing the S&P 500 by nearly 100 percentage points. However, the Vanguard Information Technology ETF's performance is even more impressive, with a trailing decade total return of 775%. A $10,000 investment would now be worth nearly $88,000.\n\nBoth ETFs have been significantly impacted by the artificial intelligence (AI) boom. The Vanguard Information Technology ETF has a stronger concentration in Nvidia, Apple, and Microsoft, with Nvidia alone representing 17.6% of the portfolio, compared to 13.5% in the Vanguard Morningstar Growth ETF. Given the long-term outlook, taking on greater risk is acceptable. The Vanguard Information Technology ETF is the recommended choice, as it offers more sector concentration while still providing strong returns. However, for those who prefer a more conservative approach, allocating 5% to 10% of their portfolios to the Vanguard Information Technology ETF can help manage risk and volatility while still benefiting from the technology sector's growth potential.",
  "summary": "Both top-tier ETFs have meaningfully outperformed the S&P 500 index in the past decade.",
  "key_points": [],
  "editors_take": null,
  "illustration": null,
  "coverage": {
    "outlets": 2,
    "also_reported_by": [
      {
        "outlet": "Nasdaq Markets",
        "title": "Vanguard Morningstar Growth ETF vs. Vanguard Information Technology ETF: Here's Which One I Believe Is the Clear Long-Term Winner.",
        "url": "https://urgent.news/2026/10/24/vanguard-morningstar-growth-etf-vs-vanguard-information-technology-16338130",
        "published": "2026-10-24T14:31:00.000Z"
      }
    ]
  },
  "ai_generated": true,
  "disclaimer": "Summaries, key points and the editor’s take are written by software from other outlets’ reporting and may contain errors — always check the linked original."
}