Comparison of S&P 500 and Vanguard Information Technology ETF (VGT)

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Comparison of S&P 500 and Vanguard Information Technology ETF (VGT)

Current Performance Data (as of September 27, 2024)

S&P 500

  • Current Price: 4,496.85
  • Year-to-Date (YTD) Return: 15.2%
  • 1-Year Return: 19.5%
  • 3-Year Annualized Return: 12.4%
  • Volatility (1-Year): 18.1%

Vanguard Information Technology ETF (VGT)

  • Current Price: $584.96
  • YTD Return: 19.0%
  • 1-Year Return: 30.3%
  • 3-Year Annualized Return: 11.3%
  • Volatility (1-Year): 17.9%

Step-by-Step Comparison

1. YTD Return Comparison

S&P 500 YTD Return: 15.2%
VGT YTD Return: 19.0%

Calculation:
VGT outperforms the S&P 500 by:
Difference = VGT YTD - S&P 500 YTD = 19.0% - 15.2% = 3.8%

2. 1-Year Return Comparison

S&P 500 1-Year Return: 19.5%
VGT 1-Year Return: 30.3%

Calculation:
VGT outperforms the S&P 500 by:
Difference = 30.3% - 19.5% = 10.8%

3. 3-Year Annualized Return Comparison

S&P 500 3-Year Return: 12.4%
VGT 3-Year Return: 11.3%

Calculation:
S&P 500 outperforms VGT by:
Difference = 12.4% - 11.3% = 1.1%

4. Volatility Comparison

S&P 500 Volatility (1-Year): 18.1%
VGT Volatility (1-Year): 17.9%

Conclusion on Volatility: VGT has slightly lower volatility, indicating it may be less risky compared to the S&P 500 in the past year.

Summary

  • YTD Return: VGT outperforms the S&P 500 by 3.8%.
  • 1-Year Return: VGT outperforms the S&P 500 by 10.8%.
  • 3-Year Return: S&P 500 outperforms VGT by 1.1%.
  • Volatility: VGT is slightly less volatile.

This analysis shows that while the VGT has performed exceptionally well over the past year, the S&P 500 has a better annualized return over three years, with both exhibiting similar levels of volatility.