Own VGT? Here's How Much of It Is Really Nvidia, Apple, Microsoft, and Broadcom.
This Vanguard tech ETF has beaten the Nasdaq-100 for the past 10 years -- but its portfolio is surprisingly top-heavy with just four big names.
Investors should examine what they're purchasing within ETFs, as there can be significant overlaps among tech ETFs. The Vanguard Information Technology ETF (VGT) is a well-known tech fund that holds 318 stocks in the electronics and computer industries, including semiconductors, software, hardware, and tech-related services. As of September 30, four major tech stocks - Nvidia, Apple, Microsoft, and Broadcom - made up 49% of VGT's assets.
VGT has outperformed the Nasdaq-100 index in the past decade, but concerns about its concentration in just these four stocks have arisen. For those seeking a different stock mix, buying an S&P 500 ETF or a Nasdaq-100 ETF may be a more diversified alternative.
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