You're looking at your portfolio and wondering why everything feels so heavy on just a few names. If you’ve ever asked how many companies are in the VGT, you probably expected a huge, diverse list. On paper, that's exactly what you get. But the reality of the Vanguard Information Technology ETF is a bit more complicated than a single number on a factsheet.
As of early 2026, the official count sits at 320 companies.
That sounds like a lot. It’s a massive basket of tech, ranging from the titans that run the world to tiny software firms you’ve never heard of. But here’s the kicker: even though there are over 300 stocks in the fund, the "vibe" of your investment is dictated by about three of them. Honestly, it’s a bit of a lopsided party.
The Massive Gap Between 320 and the Top 3
People see that 320 number and think they’re getting broad exposure. Sorta. The fund tracks the MSCI US Investable Market Information Technology 25/50 Index. This index is designed to cover the whole US tech sector, including small-cap and mid-cap stocks.
However, because VGT is market-cap weighted, the biggest companies get the biggest slice of the pie. It's basically a winner-take-all system.
Currently, NVIDIA (NVDA), Apple (AAPL), and Microsoft (MSFT) are the undisputed heavyweights. Just look at the concentration:
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- NVIDIA recently ballooned to over 17% of the fund.
- Apple hovers around 15%.
- Microsoft sits near 12%.
If you do the math, those three companies alone make up nearly 45% of the entire ETF. You could have 317 other companies in there, but if NVIDIA has a bad Tuesday, the whole fund is going to feel it. It’s a weird paradox. You own 320 companies, but you’re really betting on a handful of CEOs in Silicon Valley.
What Kind of Companies Are Actually Inside?
So, if those are the big guys, who else is in there? VGT splits its 320 holdings into three main buckets.
First, you have the software and services group. This isn't just Microsoft; it's also companies like Salesforce, Oracle, and Palantir. Palantir has actually been a massive mover lately, climbing its way up to a top-five position in the fund with a weighting of nearly 2%.
Then you have semiconductors. This is the "brain" of the operation. Beyond NVIDIA, you’ve got Broadcom, AMD, and Micron. This sector is notoriously cyclical. It’s boom or bust. If chips are in demand (hello, AI), VGT flies. If there’s a supply glut, things get shaky fast.
Finally, there’s technology hardware and equipment. This is where Apple lives, along with networking giants like Cisco and Arista Networks.
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It's important to realize what isn't in VGT. You won't find Google (Alphabet) or Meta (Facebook) here. Why? Because the index providers reclassified them as "Communication Services" years ago. Amazon isn't here either; it’s considered "Consumer Discretionary." This is why knowing how many companies are in the VGT is only half the battle—you have to know which companies are missing.
Why the Number 320 Changes
The count isn't static. It’s not like Vanguard picked 320 stocks in 2004 and stayed put. The fund rebalances and the index updates.
Companies get bought out. Startups go public. Some firms grow so large they stay in, while others shrink until they’re booted. For instance, the number of holdings was slightly higher—around 325 or 328—just a few months ago. These fluctuations happen because the MSCI index undergoes quarterly reviews and a more intense semi-annual rebalancing.
If a company’s market cap drops too low, it's out. If a new tech firm hits the public markets and meets the size requirements, Vanguard’s managers—led by folks like Nick Birkett—have to buy it to keep the fund matching the index.
The Risks of a Top-Heavy Portfolio
Let’s talk about the 25/50 rule. It’s a tax thing, basically.
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To keep its status as a regulated investment company, VGT has to follow a rule where no single company exceeds 25% of the fund, and the sum of all companies that are over 5% cannot exceed 50% of the total assets.
We are bumping right up against that.
Because NVIDIA and Apple are so massive, the fund has to occasionally "trim" its winners to stay legal. This is why you might see VGT’s performance deviate slightly from a "pure" tech index. It’s a safety valve, but it also means you’re forced to sell a bit of your best performers to buy more of the smaller, riskier ones.
Actionable Insights for Your Portfolio
If you’re holding VGT or thinking about buying in, don’t just stare at the "320 companies" stat and feel safe. Here is how to actually handle this information:
- Check for Overlap: If you already own a total market fund like VTI or an S&P 500 fund like VOO, you are already "double-dipping" on Apple and Microsoft. Adding VGT makes your portfolio extremely vulnerable to a tech-specific downturn.
- Watch the Semi Sector: With nearly a third of the fund in semiconductors, VGT is essentially a proxy for the AI hardware race. If you think the AI hype is peaking, VGT is a dangerous place to be.
- Mind the Expense Ratio: At 0.10%, VGT is incredibly cheap. It’s one of the most efficient ways to own the sector, but don't let the low cost blind you to the volatility. Tech can drop 20% in a month without breaking a sweat.
- Look Beyond the Top 10: If you want true diversification, realize that the bottom 200 companies in VGT account for a tiny fraction of the fund's movement. You aren't really getting "small-cap" exposure in any meaningful way; you’re getting a mega-cap fund with a very long tail of tiny holdings.
The next time someone asks you about this ETF, you can tell them that while there are hundreds of names on the list, the real story is written by the top 10. It's a powerhouse of a fund, but it's a concentrated one. Treat it like a high-octane engine: great for speed, but you really need to keep an eye on the gauges.
For those tracking their specific allocations, the most current data shows the fund holding steady at exactly 320 stocks as of the most recent month-end reporting. Keep an eye on the quarterly rebalancing in March, June, September, and December—that’s when the "official" count usually shifts.
Next Steps for Investors:
Review your current brokerage statement to see if your combined exposure to NVIDIA and Apple across all your funds exceeds 20%. If it does, you might be more "concentrated" than "diversified," and it may be time to look at adding some non-tech sectors to balance the scales.