VGT Has Doubled VUG and MGK Since April’s Split and Here’s Why

Vanguard executed an 8-for-1 split on VGT, a 6-for-1 split on VUG, and a 5-for-1 split on MGK. VGT tracks the MSCI US IMI/Information Technology 25/50, focusing on semiconductors and platform software. MGK tracks the CRSP US Mega Cap Growth Index, blending tech giants with consumer and communications names. VUG is the broadest, diluting tech with various growth stocks.

Nvidia's Q1 FY27 revenue of $81.615 billion (up 85.23% year-over-year) and Broadcom's $8.40 billion in Q1 AI revenue (up 106% year-over-year) have significantly boosted VGT. Conversely, Meta's 5.02% fall and Microsoft's minimal gain of 0.89% since April 21 have weighed on VUG and MGK.

VGT's focus on AI semiconductors, particularly Nvidia and Broadcom, drove its outperformance, while VUG and MGK were diluted by underperforming stocks like Meta and Microsoft.

VGT has an expense ratio of 9 basis points, MGK has 5 basis points and VUG also has 5 basis points.

For investors seeking concentrated AI semiconductor exposure, VGT is a strong choice. MGK suits those wanting mega-cap growth without being fully invested in tech, while VUG is best for those seeking the widest growth stock exposure. A rotation out of semiconductors or a China policy shock could negatively impact VGT.

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