NEW YORK, May 29, 2026, 12:01 EDT
- Vanguard’s technology ETF is outpacing the group’s two bigger growth funds five weeks since the April split. Investors are back to buying AI hardware, giving the tech ETF an edge.
- Vanguard said the split dropped per-share prices but left investors’ economic stake the same.
- Concentration is the main risk. VGT’s top positions are the same AI names most at risk if that trade reverses.
Vanguard Information Technology ETF has moved ahead of Vanguard’s wider growth funds since an April share split. The tech-heavy ETF, which gives investors a way to buy into AI hardware and software bets, is still drawing money as buyers stay interested in focused tech trades.
The timing is in focus because after the split, the fund’s price looked lower to screens as AI stocks led U.S. markets higher. VGT was trading at $120.68 late Friday morning in New York. Vanguard Growth ETF quoted at $89.51, and Vanguard Mega Cap Growth ETF at $91.16.
Vanguard said in March it would split five equity ETFs, setting April 21 as the date for trading at the new split-adjusted prices. Splits include VGT at 8-for-1, VUG at 6-for-1, MGK at 5-for-1, Vanguard S&P 500 Growth ETF at 6-for-1, and Vanguard Mid-Cap ETF at 4-for-1. The forward splits add to the share count and cut the price per share. Vanguard said the splits do not affect market value or trigger a tax event.
VGT has nearly doubled VUG and MGK’s post-split returns, according to a 24/7 Wall St. story that ran Friday on Yahoo Finance and AOL. The piece noted the Vanguard split is “five weeks old” and cited performance since April 21. Yahoo Finance
It’s not the split. It’s what’s inside VGT. Vanguard lists Nvidia at about 18.59% of the ETF, Apple at 14.81% and Microsoft at 10.01%. That puts over two-fifths of the portfolio in those three stocks. VUG and MGK hold big tech as well, but those are broader growth ETFs, not focused on information technology.
Dell lifted its annual AI server revenue view to around $60 billion after first-quarter revenue surged 88% to $43.84 billion, thanks to strong demand for Nvidia-based servers. Chief Operating Officer Jeff Clarke told investors on a post-earnings call, “We’re repricing, it feels like, every day,” with supply and cost still tight for AI hardware. Reuters
Nvidia’s push outside the U.S. is clear, too. Reuters said Friday that CEO Jensen Huang was in Taiwan just before Computex and told reporters the company could spend up to $150 billion a year there. Ryan Fletcher, a McKinsey & Company partner, said Taiwan’s role is “moving from a semiconductor story to an infrastructure story.” Reuters
VGT has stood out from its peers. VUG and MGK both hold a lot of the big tech growth names, but VGT tilts harder toward chips, software, hardware, and IT services. That pure-play approach has worked in a market where Dell, Super Micro Computer, and Hewlett Packard Enterprise traded on AI server numbers. That narrower focus has meant more upside.
VGT’s 8-for-1 split is making it easier for holders to use options. A 24/7 Wall St. story last week pointed out the split dropped the cost to sell a covered call from over $80,000 to somewhere near five figures. Selling a covered call lets someone else buy 100 shares at a set price. On Friday, 100 VGT shares would have been about $12,068.
The setup isn’t all positive for VGT. Heavily weighted names like Nvidia, Apple and Microsoft can pull the fund lower when they slip. Covered calls limit gains, and while premiums help, they don’t shield against a fast drop. The split changed how it trades, but didn’t change the risks.
Vanguard’s stock split is not the big story for now. The market is focused on the lead taken by funds tied to AI infrastructure. VGT is getting more attention from investors than the broader Vanguard growth ETFs because it is closer to the AI theme.
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