For investors seeking momentum, Vanguard Information Technology ETF VGT is probably on the radar. The fund just hit a 52-week high and is up 49.4% from its 52-week low price of $408.43/share.
These three time-tested Vanguard ETFs can supercharge your long-term wealth-building strategy.
VGT's concentrated portfolio, with Apple, Nvidia, and Microsoft at 45%, reduces diversification and limits upside potential to 6%. VGT tracks the MSCI US IMI/Information Technology 25/50 Index, which forces the ETF into a highly concentrated portfolio. While VGT and QQQ have similar EPS growth, PE, and PEG ratios, VGT's concentration poses a higher risk if one of the three top stocks underperforms.
The Vanguard Information Technology ETF gives investors exposure to many of the top tech stocks in the world.
Technology stocks have consistently beat the S&P 500, and that trend could continue as AI spending increases.
VGT is a solid technology sector fund with a low expense ratio and superior risk-adjusted performance, despite slightly lagging its peers in total return. Technology's recent underperformance is due to overvaluation and crowded positioning, but these issues are fading, making the sector attractive again. I rate VGT a "buy" but suggest waiting for a better entry point around $550, or buying if it breaks the $610 all-time high convincingly.
This high-flying Vanguard ETF could keep its momentum going.
This investment could help you build serious wealth while barely lifting a finger.
Large technology stocks are leading the S&P 500 higher, and that trend is likely to continue thanks to artificial intelligence.
The Vanguard Information Technology ETF's average annual return was 14%-plus over the past two decades.
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 an easy way to participate in the market. Vanguard offers some of the lowest fees in the industry, making them an ideal choice for long-term investors.