VGT is the Vanguard Information Technology ETF, and the number that defines it is not the 0.09% expense ratio. It is 44.37%. That is how much of the fund sat in three stocks in Vanguard’s holdings file dated 31 July 2026.
Nvidia held 17.16% of assets, Apple 16.25% and Microsoft 10.96%. Everything else in the portfolio splits the remaining 55.63%.
Three names, 44% of a 319-stock fund
The fourth position is a long way down. Broadcom sat at 4.21%, Micron at 3.82%, AMD at 3.18%. Only three holdings in the whole fund carried a weight above 5%.
The top ten came to 62.37% of a $160.08 billion portfolio. Cisco, Applied Materials, Intel and Lam Research fill places seven through ten, and none reached 2%.
For the business case behind that ninth slot, we covered what actually drives Intel now separately.
What the 25/50 in the index name limits
The fund tracks the MSCI US Investable Market Index (IMI)/Information Technology 25/50, named in Vanguard’s summary prospectus filed 30 June 2026. The 25/50 is a tax rule wearing an index name.
MSCI’s own methodology document explains it. To qualify as a regulated investment company under the US Internal Revenue Code, a fund cannot hold more than 25% of assets in one issuer, and issuers weighing more than 5% each cannot sum to more than 50%.
Vanguard’s summary prospectus never prints either percentage. The only place 25/50 appears is inside the index name and the performance table, so the cap has to be read out of MSCI’s document rather than the fund’s.
MSCI then applies a 10% buffer to both limits. At each rebalance, no single group entity may exceed 22.5%, and the group of entities above 4.5% cannot exceed 45%.
Apply that to the July file. The three large positions are the only ones over 5%, and together they reach 44.37%.
That sits roughly half a point under the 45% ceiling MSCI enforces at rebalance. Rebalances land on the last business day of February, May, August and November.
The other 316 holdings barely register
Vanguard reported 319 positions. Of those, 221 were weighted below 0.1% each, and the smallest hundred combined came to 1.00% of the fund.
Portfolio turnover ran 8% in the most recent fiscal year, so the tail is held rather than traded. The prospectus also calls the fund nondiversified under the Investment Company Act of 1940, which is the fund telling you this in its own words.
That is the opposite of a screened, rules-weighted product. We walked through how SCHD’s index methodology picks and caps holdings if you want the contrast.
GICS decides what counts as tech here
Alphabet, Amazon, Meta and Tesla do not appear anywhere in the holdings file. The Global Industry Classification Standard files them under communication services and consumer discretionary, so a sector index built on GICS leaves them out.
The practical effect is that VGT is a semiconductor and software fund with a hardware anchor, not a broad megacap technology fund. Our breakdown of the AI chip names driving that weighting covers the companies doing most of the work here.
How many stocks does VGT hold?
319 as of 31 July 2026. The count overstates the diversification, since the top ten accounted for 62.37% of assets and 221 positions were under 0.1% each.
Can a single holding pass 25% of the fund?
Not at a rebalance. MSCI caps any group entity at 22.5% when it resets the index in February, May, August and November. Weights can drift between those dates as prices move.
What does VGT cost to own?
Vanguard lists the expense ratio at 0.09%, with the ETF share class dating to 26 January 2004. Costs are only one input, and none of the figures here are a recommendation to buy or sell.
