Own VGT? Here's How Much of It Is Really Nvidia, Apple, Microsoft, and Broadcom.
Key PointsThe Vanguard Information Technology ETF (VGT) has delivered impressive annualized returns of 24.7% for the past 10 years, outperforming the high-flying Nasdaq-100 index.
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.
Written by urgent.news from Motley Fool's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
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