You Can Do Better Than the S&P 500. Buy This ETF Instead.
The Vanguard Information Technology ETF has significantly outperformed the S&P 500 over the past decade, often doubling its long-term returns. It is more concentrated in large tech stocks like Apple, Microsoft, and Nvidia compared to broader market trackers.
The Smartest Tech ETF to Buy With $500 Right Now
The ETF is quite diversified, holding more than 300 tech stocks. It has a sizable position in three of the "Magnificent Seven" companies.
VGT Is A Stronger Investment Option Than QQQ
VGT offers a competitive investment strategy with a lower expense ratio (10bps) and higher yield (0.65%) compared to QQQ, making it a strong buy for tech sector exposure. VGT's portfolio is highly concentrated, with top holdings Apple, Microsoft, and Nvidia making up 47.08% of the total weight, providing focused tech exposure. Despite concentration risks, VGT performs similarly to QQQ but with lower fees, making it ideal for long-term, buy-and-hold investors.
VGT: Relative Strength Suggests Caution Warranted
The Vanguard Information Technology ETF (VGT) is dominated by Apple, NVIDIA, and Microsoft, which together account for 44% of the ETF. The VGT ETF's recent underperformance relative to the S&P 500 suggests sector rotation is occurring, as investors shift from expensive tech stocks to cheaper sectors. Technology's underperformance is also consistent with late-cycle dynamics, suggesting caution is warranted.
VGT: Insane Concentration Risk
Tech is currently the most overcrowded sector, likely facing a meaningful correction soon, making it a risky allocation right now. Vanguard Information Technology ETF offers broad tech exposure but has high concentration risk in top holdings like Apple, Microsoft, and Nvidia. VGT outperforms peers like XLK due to more diversified holdings and lower fees, but the sector's volatility and concentration risk are significant concerns.
Here's 1 Vanguard ETF I'm Loading Up On and 1 I Wouldn't Touch With a 10-Foot Pole
Investing in the S&P 500 is a way of tying your portfolio to the growth of the U.S. economy. The Vanguard S&P 500 ETF has averaged over 14% annual total returns since its inception.
2 Unstoppable Vanguard ETFs to Buy With $950 During the S&P 500 Bull Market
The S&P 500 index is firmly in bull market territory. The technology sector is leading the way, with stocks like Nvidia, Microsoft, and Apple driving the index higher.
1 Technology ETF to Buy With $1,000 and Hold Forever
Three stocks dominate the Vanguard IT ETF. Investors pay a tiny expense ratio, which lets them keep more of their money.
Want to Invest in Tech Stocks With Less Risk? Try This Proven Strategy
Investing in the stock market is a proven way to generate long-term wealth. ETFs are lower-maintenance and can help minimize risk.
Stock Market Sell-Off: Here Are the 3 Best Vanguard ETFs to Buy on the Dip
Buying on the dip is a great way to lower an investor's cost basis -- making it easier to build wealth. The Vanguard Information Technology ETF has outperformed the S&P 500 since its inception in 2004.
4 Reasons to Buy This ETF Like There's No Tomorrow
The Vanguard Information Technology ETF has a strong track record. It gives investors instant access to a number of top AI companies.
1 ETF I Wouldn't Touch With a 10-Foot Pole
The top three holdings make up over 47% of the Vanguard Information Technology ETF. If this Vanguard ETF's top holdings experience a correction, it'll have a tangible effect on the overall ETF.
