Vanguard keeps tech ETF VGT fees unchanged despite strong returns, advising cautious portfolio use.

Vanguard recently cut fees on many funds but left the Vanguard Information Technology Index Fund ETF (VGT) unchanged at 0.09%, despite its strong 30% year-to-date gain. Vanguard prioritizes fee cuts for core index and bond funds, viewing sector ETFs like VGT as satellite holdings rather than core investments. For retirement-age investors, VGT should be a small, intentional part of a portfolio due to its sector concentration and higher fees. Younger investors may tolerate more risk for higher returns, but all should consider overlap with core funds like the Vanguard S&P 500 ETF (VOO) before adding VGT. Alternatives like Invesco QQQ offer tech exposure with different fees and concentration.