Vanguard Information Technology ETF has outperformed since 2004, but is heavily concentrated in a few large-cap tech companies. VGT has consistently underperformed the broader NASDAQ index, with core holdings like Microsoft, Apple, and NVIDIA potentially overvalued. Signs of slowing global growth and a strengthening dollar may impact VGT's performance, making it a high-risk ETF with minimal diversity.
The current US economic landscape is unique. Many varying economic forces, making an ideal soft landing a matter of when. VGT has a unique portfolio concentrated enough to reap long-term benefits of technological development, but also account for volatilities in the economy through diversification into areas of information technology. Strong Quant Ratings amidst other technology-based ETFs, along with current economic and secular shifts that align comfortably with VGT's holdings, are also catalysts supporting my buy rating.
ETFs can help create a well-diversified portfolio with less time and effort. Industry-specific funds, like tech ETFs, can provide exposure to particular sectors while reducing risk.
The Vanguard Information Technology ETF gives investors a large amount of exposure to three of the stocks benefiting the most from AI. The ETF has a strong record over the past decade.
The S&P 500 is up 15.7% this year, but one-third of that gain has come from a single stock: Nvidia. Investors who don't own Nvidia or its trillion-dollar tech stock peers have missed out on significant returns in 2024.
Last Year, I predicted IYW would be a better investment than VGT. IYW has outperformed due to its greater concentration in fewer stocks, and it's tracking an index that includes stocks VGT's index expelled. Both VGT and IYW's 1-year results are largely due to NVDA's extreme surge.
ETFs are one of our favorite investment instruments. They provide exposure to a large swath of stocks, allowing you to quickly diversify your portfolio with a single purchase.
Artificial intelligence will redraw the rules and core operating principles for most sectors -- especially healthcare and technology. These two Vanguard ETFs are a great way to gain exposure to this emerging trend.
In the past 20 years, the information technology sector has outperformed every other major sector. Microsoft, Apple, and Nvidia account for more than 44% of the Vanguard Information Technology ETF's holdings.
The Vanguard Information Technology ETF has averaged impressive returns over the past decade. The Vanguard High Dividend Yield ETF's payout is more than double the average yield of the S&P 500.
Vanguard Information Technology Index Fund ETF tracks three broad technology sectors. The ETF has a unique 25/50 methodology to increase diversification.
Looking for broad exposure to the Technology - Broad segment of the equity market? You should consider the Vanguard Information Technology ETF (VGT), a passively managed exchange traded fund launched on 01/26/2004.