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Should You Buy This Vanguard Fund That's Soared 136% Over 3 Years Before April 17?

newsfeedback@fool.com (Adria Cimino)
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⚡ Quantum Brief
The Vanguard Information Technology ETF has surged 136% over three years, driven by AI-driven tech stock demand, with top holdings including Nvidia, Microsoft, and Apple. An 8-for-1 share split on April 17 will reduce the ETF’s price from ~$700 to ~$85 per share, aiming to broaden investor accessibility without altering total value. The split follows a pattern of lowering psychological barriers for high-priced assets, with post-split trading beginning April 21 at the adjusted price. Investors buying before April 17 will receive additional shares, but the split doesn’t change the fund’s fundamentals or long-term potential. The ETF remains a strong tech-sector bet, offering exposure to AI leaders, though timing the split isn’t critical for investment decisions.
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By Adria Cimino – Apr 5, 2026 at 6:15PM ESTKey PointsThis fund roared higher amid excitement about AI stocks. It offers investors exposure to leading names, such as Nvidia and Microsoft. Technology stocks and funds have skyrocketed in recent years as investors rushed to get in on the next big revolution: artificial intelligence (AI). Like the internet or the printing press, AI may enter history books as one of the biggest transformations in the world of technology. And companies and investors involved in the early stages may score a major win. This idea has sparked investor interest in tech stocks and funds, driving them to highs. And one of these winning assets has been the Vanguard Information Technology ETF (VGT +0.85%). Over the past three calendar years, this exchange-traded fund has soared 136%. Since the start of this year, it's slipped about 6%, but at about $700 a share, it remains close to its peak price of more than $750. In a couple of weeks, the fund's managers will do something that will drastically change the price of this hot ETF. With this in mind, should you buy shares before the key date of April 17? Let's find out. Image source: Getty Images. Making the fund more accessible So, what exactly is happening later this month? Vanguard has decided to launch share splits for several of its funds, and one of them is the Vanguard Information Technology ETF. Vanguard says the reason for this is "to widen availability for investors by keeping share prices within accessible trading ranges." Before going into the details and answering our question, here's a quick refresher on how share splits work. A stock or share split offers current holders of a particular asset additional shares -- this doesn't change the total value of their investment, but instead, lowers the value of each share. The ratio of the split determines how many shares you will hold and their value after the operation. So, for example, in a 10-for-1 split, if you hold 1 share before the operation, you'll receive nine more shares as part of the deal. This would bring a $1,000 stock or fund down to $100 per share. The Vanguard IT fund will undergo an 8-for-1 split, meaning holders will receive seven additional shares for every one they already own. And at the price of the ETF today, that would bring each share to just over $85. ExpandNYSEMKT: VGTVanguard Information Technology ETFToday's Change(0.85%) $6.00Current Price$712.65Key Data PointsDay's Range$688.79 - $713.0052wk Range$451.00 - $806.99Volume449K Approaching $1,000 As mentioned, companies or, in this case, funds do this to make an asset that's climbed considerably an easier buy for a broader range of investors. Often, when a stock or fund approaches the $1,000 level, companies themselves or, in the case of a fund, fund management companies decide on a split; the price of $1,000 may represent a psychological barrier for some investors, as they might view the asset as pricey even if the valuation is reasonable. So, this could be a wise move to keep investors interested in a particular stock or fund. The date of record for the Vanguard split will be April 17, so investors interested in participating in the split should buy before or as of that date. That said, if you buy the stock between this date and the date of the split, the right to the extra shares transfers over to you. In this case, the Vanguard IT fund will begin trading at the split-adjusted price on April 21. Should you buy now? So, now, let's return to our question: Should you rush to get in on this fund prior to the share split? Not necessarily. Though stock splits lower the per-share price, they don't change anything fundamental about a company or a fund's composition. They just make it easier for you to make a smaller investment in that particular asset. Whether you buy the Vanguard IT fund today or in a few weeks, the value of your investment will remain the same. That said, this particular fund remains a solid addition to any tech portfolio. It offers you exposure to the leading names in technology, as its biggest holdings include Nvidia, Apple, Microsoft, and many others. These are players that established their strengths before the AI boom and are likely to benefit from AI and non-AI business in the years to come. All of this means that you don't have to race to buy shares of the Vanguard Information Technology ETF before a certain date -- it makes a great investment before or after April 17.Read NextApr 2, 2026 •By Daniel FoelberThe Best-Performing Vanguard ETF Over the Last Decade Is Issuing an 8-for-1 Stock Split.

But Should Investors Be Concerned That 44% of the ETF Is Invested in Just 3 Growth Stocks?Apr 2, 2026 •By Katie BrockmanThis Tech ETF Is Down 16% From Its Peak. Here's Why I'm Still Buying.Mar 26, 2026 •By Josh Kohn-LindquistVanguard (VGT) vs. Roundhill Investments (CHAT): Which Technology ETF Reigns Supreme?Mar 26, 2026 •By Eric TrieIdentical Tech Exposure, Lower Cost or Greater Liquidity? VGT vs. FTECMar 24, 2026 •By Trevor JennewineBuy 2 Vanguard Index Funds to Beat the S&P 500 in the Next Year, According to Wall StreetMar 23, 2026 •By Chris Neiger3 Vanguard ETFs to Buy With $100 and Hold ForeverAbout the AuthorAdria Cimino is a contributing Motley Fool stock market analyst covering healthcare, technology, and consumer goods sectors. Prior to The Motley Fool, Adria covered the European stock market and U.S. stocks pre-market trading for Bloomberg News, Bloomberg TV, and Bloomberg Radio for more than a decade. Earlier in her career, she wrote about biotech, medtech, and technology companies in Boston for Mass High Tech, an American City Business Journals publication. She holds a bachelor’s degree in mass communications from the University of South Florida.TMFAdriaCiminoX@adria_in_parisStocks MentionedVanguard Information Technology ETFNYSEMKT: VGT$712.65(+0.85%)+$6.00MicrosoftNASDAQ: MSFT$373.46(+1.11%)+$4.09AppleNASDAQ: AAPL$255.92(+0.11%)+$0.29NvidiaNASDAQ: NVDA$177.28(+0.87%)+$1.53*Average returns of all recommendations since inception. Cost basis and return based on previous market day close.

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