This Tech ETF Is Down 16% From Its Peak. Here's Why I'm Still Buying.

By Katie Brockman – Apr 2, 2026 at 10:45AM ESTKey PointsTech stocks have been hit especially hard as the market continues to stumble.The right ETF can provide ample diversification and long-term growth potential.Holding your investment for at least a few years can mitigate risk.Major market indexes have been steadily declining over the past few weeks, and tech stocks have been hit particularly hard. The tech-heavy Nasdaq Composite (^IXIC 0.38%) recently entered correction territory, falling by nearly 13% from its peak, as of this writing. On the surface, right now may seem like a terrible time to invest in tech stocks. But there's one exchange-traded fund (ETF) that I'm loading up on, even though it's already plunged by more than 16%. Here's why. Why I'm loading up on tech stocks right now I've owned the Vanguard Information Technology ETF (VGT +0.41%) for years, and even as its price plunges, I'm still investing consistently. This ETF is down by around 16.4% from its peak in late 2025, as of this writing. In that time, its price has fallen from around $801 per share in October to roughly $665 per share, as of market close on March 30. ExpandNYSEMKT: VGTVanguard Information Technology ETFToday's Change(0.41%) $2.86Current Price$709.51Key Data PointsDay's Range$688.79 - $712.4652wk Range$451.00 - $806.99Volume220K That may not seem like great news for investors like me, as it means my portfolio has shrunk in value over the past six months. But it also means that this ETF now costs around $136 less per share than it did just a few months ago. Mindset is everything when investing. Some investors will see a 16% price drop as a loss in value, while others will see it as an opportunity to buy a high-priced investment at a 16% discount. Downturns are daunting, even to experienced investors. But they also create an invaluable opportunity to "buy the dip" and invest at lower prices. The future is still bright for investors There is a chance that stock prices will continue to fall in the coming weeks and months. However, this fund's diversified approach can help limit its risk.

The Vanguard Information Technology ETF holds 318 stocks. While around 44% of assets are allocated to its top three holdings -- Nvidia, Apple, and Microsoft -- the other half of the fund is dedicated to hundreds of stocks from all corners of the technology sector. Mixing heavy megacap exposure with broad diversification can help mitigate risk. Industry-leading giants are more likely to thrive over time, even if they experience short-term volatility. But investing in hundreds of other stocks simultaneously can help reduce single-stock risk. The key to long-term investing success Keeping a long-term focus is key right now. Tech stocks are often hit harder than those in more established industries during recessions and bear markets, so this ETF and others similar to it could have further to fall. Over time, though, strong investments are likely to bounce back.

The Vanguard Information Technology ETF was launched in 2004, and it's survived the Great Recession, the COVID-19 crash, the bear market throughout 2022, and many smaller corrections along the way. Since its inception, though, it's earned total returns of around 1,550%. In other words, if you'd invested $5,000 in 2004, you'd have around $82,000 by today. VGT Total Return Level data by YCharts Again, be prepared for more significant volatility if you choose to invest in tech stocks or a tech ETF, and double-check that the rest of your portfolio is well-diversified with stocks from a variety of other sectors. If you're able to hold your investment for at least a few years until the market inevitably recovers, investing in tech stocks now could be lucrative over time.Read NextMar 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 ForeverMar 18, 2026 •By Reuben Gregg Brewer1 Tech ETF to Buy Hand Over Fist -- and 1 to AvoidMar 17, 2026 •By Anthony Di PizioPrediction: This Unstoppable Vanguard ETF Will Crush the S&P 500 Again in 2026About the AuthorKatie Brockman is a contributing writer at The Motley Fool covering retirement, Social Security, and investing fundamentals. Prior to The Motley Fool, Katie held various writing and editing roles at companies ranging from small start-ups to multimillion-dollar brands. Her work has appeared in USA Today, Inc magazine, and other authoritative media outlets. She holds a bachelor’s degree in business administration and management from Illinois Wesleyan University.TMFKatieBrockmanStocks MentionedVanguard Information Technology ETFNYSEMKT: VGT$709.51(+0.41%)+$2.86NASDAQ Composite IndexNASDAQINDEX: ^IXIC$21,798.47(-0.19%)-$42.48MicrosoftNASDAQ: MSFT$370.07(+0.19%)+$0.70AppleNASDAQ: AAPL$254.67(-0.38%)-$0.96NvidiaNASDAQ: NVDA$176.53(+0.44%)+$0.78*Average returns of all recommendations since inception. Cost basis and return based on previous market day close.