Vanguard Information Technology ETF offers low fees, and a dividend yield, gaining over 35% since September last year. VGT's outperformance is due to the innovation factor, with companies like Nvidia and Microsoft driving growth in AI. The AI base of VGT has broadened, with companies like Oracle and Advanced Micro Devices entering the AI semiconductor space, without forgetting Cisco.
The Vanguard Information Technology ETF has delivered superior returns for many years. It's not low fees that generate the bulk of its outperformance, nor is it a simple focus on big tech stocks.