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.
If you're looking for a more passive approach to investing but don't want to sacrifice your potential gains, there's an obvious solution -- exchange-traded funds, or ETFs. These of course are pre-selected baskets of stocks bought and sold as a group.
The S&P 500 entered its current bull market in October 2022 and has since advanced 65%, led by a 130% gain in the technology sector. But equity analyst Dan Ives at Wedbush says the bull market will run for another two to three years, and he believes technology stocks could soar 25% in 2025.
The right investment has the power to transform your portfolio, and exchange-traded funds (ETFs) can be a smart way to supercharge your savings with very little effort.
The technology sector is witnessing the rise of two transformative subsectors that are reshaping the future. Agentic AI, the next evolution in artificial intelligence (AI), empowers machines to make autonomous decisions and proactively complete complex tasks without constant human oversight.
The tech sector thrived in 2024, with standout performances from Apple, Microsoft, and Nvidia, but potential volatility looms ahead. VGT is highly concentrated in its top three holdings, which poses risks despite their strong performance this year. VGT is well-rounded compared to peers, but currently overbought; a correction would make it a safer investment.