So you've got $1,000 burning a hole in your pocket, and you're looking to invest it for long-term growth. (Maybe you've actually got $100,000 to invest, or just $100 -- the following advice is one-size-fits-all.
Artificial intelligence (AI) will transform the global economy. Market forecasts for its economic impact by 2030 range from optimistic projections of tens of trillions in gross domestic product (GDP) growth to conservative estimates of just half a percent.
The S&P 500 (^GSPC 1.09%) is up 24% this year, which is more than double its average annual return going back to when it was established in 1957. However, the index is in sell-off mode right now with a decline of around 3.4% from its recent record high.
There hasn't been a more flourishing category in the stock market over the past decade than the information technology sector. In that span, the tech sector of the S&P 500 is up around 576%, while the next closest is the consumer discretionary sector at 237% (as of Dec. 9).
The right investment can supercharge your portfolio, and exchange-traded funds (ETFs) can be a simple way to generate wealth with next to no effort.
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.
VGT has outperformed other large-cap ETFs like SPY and QQQ, making it a top recommendation for long-term holding due to its technology focus. Technology is the key growth driver, with ETFs like VGT making it easier to identify market leaders such as AAPL, MSFT, and NVDA. Despite high concentration risks, VGT's performance is battle-tested, and its exclusive technology holdings make it a safe bet for long-term growth.
Mega-cap tech stocks have led the market, but VGT's heavy concentration in Apple, Microsoft, and NVIDIA poses risks if their charts turn bearish. VGT is not a diversified fund; nearly 60% of its holdings are in the top 10 stocks, with 45% in Apple, NVIDIA, and Microsoft alone. The rising wedge pattern in VGT's chart suggests potential downside, but strong momentum indicators and seasonality trends offer mixed signals.
The S&P 500 is soaring in 2024, led by blockbuster returns in some of the world's most valuable stocks.
Is the Vanguard Information Technology ETF a no-brainer option for growth investors?
ETFs require minimal effort but can seriously supercharge your savings.
The Vanguard Information Technology ETF (NYSEARCA:VGT) tracks the MSCI US Investable Market Information Technology 25/50 Index, focusing solely on U.S.