Exchange-traded funds (ETFs) are fantastic investment vehicles that allow you to own a basket of stocks without picking them individually. ETFs also pool the funds of many investors together, allowing you to easily spread your money across many stocks even if you don't have much money to invest.
The S&P 500 has been a solid benchmark that has produced annualized double-digit returns for many years.
The S&P 500 (^GSPC -0.95%) has performed remarkably well in recent years, soaring by around 23% in 2024 alone and by more than 80% over the past five years.
The stock market has turned in some very robust returns in the past couple of years, which is starting to attract new investors. However, investing in individual stocks is not easy.
Passive investors looking to better capitalize on the AI boom may wish to consider Vanguard's more aggressive, tech-focused ETF, the Vanguard Information Technology ETF (NASDAQ:VGT).
If you're interested in broad exposure to the Technology - Broad segment of the equity market, look no further than the Vanguard Information Technology ETF (VGT), a passively managed exchange traded fund launched on 01/26/2004.
Exchange-traded funds (ETFs) are attractive options for investors because they can often be much safer options than individual stocks. And for investors who want a simplified investment strategy, they can be practical options to hang on to for the long term.
Vanguard has long been the golden standard for low-cost ETFs that deliver exceptional long-term returns.
Building a portfolio worth $1 million or more isn't easy, but the right investments can get you there with enough time and consistency.
The S&P 500 (^GSPC 0.88%) delivered a return of 23% in 2024, which was more than double its average annual gain dating back to when it was established in 1957. However, had you invested in the Vanguard Information Technology ETF (VGT 0.82%) instead, you would have earned a return of 32% for the year.
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.
The technology sector, despite slowing earnings growth, remains attractive due to solid future earnings expectations and AI potential, with Vanguard Information Technology Index Fund ETF Shares (VGT) being a top choice for exposure. With nearly $100 billion in assets, VGT offers broad exposure to tech stocks, including small and mid-caps, and has a low expense ratio of 0.1%. VGT's top holdings are concentrated, but that is a feature in similar funds like XLK and IYW.