Here's How Much You'd Need to Invest in VGT to Generate $500 per Month in Dividends
The Vanguard Information Technology ETF(NYSEMKT: VGT) has been one of the market's best performers over the past few years. With the artificial intelligence (AI) revolution as a tailwind, it has delivered huge returns for investors.
But this fund has never been an income generator, and only a very small percentage of its total return comes from dividends. The tech sector is, however, slowly becoming more of a place to find dividends. Microsoft, Apple, and Broadcomhave all built 10-plus-year track records of annual dividend growth. But their yields remain below 1%.
Missed AI's "Act 1"? Act 2 Could Be 14x Bigger. Most investors think they missed the AI boat because they didn't buy Nvidia in 2005. But according to our analysts, we're only at the end of "Act 1"—the R&D phase. "Act 2" is the global rollout. Continue »
You can try using this ETF as an income generator, but it will require a substantial investment to produce $500 in monthly dividends.
The Vanguard Information Technology ETF currently yields just 0.33%. If you want $500 of monthly income from this fund (or $6,000 annually), it would require an initial investment of roughly $1.82 million.
The yield is so low, obviously, because many of these tech companies are using all available resources to reinvest back into the business for growth. That's especially true now, as companies are committing hundreds of billions of dollars to AI development.
Clearly, this fund isn't built to be an income generator . It's best served within the growth equity portion of your portfolio as a long-term position. Volatility will create periods when drawdowns could be significant. But with a steady buy-and-hold process and ongoing systematic investments in it, the Vanguard Information Technology ETF has a strong outlook.
Should you buy stock in Vanguard Information Technology ETF right now?
Before you buy stock in Vanguard Information Technology ETF, consider this:
The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Vanguard Information Technology ETF wasn't one of them. The 10 stocks that made the cut are built for long-term growth and could produce monster returns in the coming years.
Consider when Netflixmade this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $361,650!* Or when Nvidiamade this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $1,437,517!*
That performance is why people listen. With a track record of beating the S&P 500 by 4x, Stock Advisor offers a distinct advantage. Don't miss the latest top 10 list, available with Stock Advisor , and join an investing community built for the long haul.
*Stock Advisor returns as of October 4, 2026.
David Dierking has positions in Apple and Vanguard Information Technology ETF. The Motley Fool has positions in and recommends Apple, Broadcom, and Microsoft. The Motley Fool has a disclosure policy .
Here's How Much You'd Need to Invest in VGT to Generate $500 per Month in Dividends was originally published by The Motley Fool
