Latest news with #VanguardInformationTechnologyETF
Business Insider
2 days ago
- Business
- Business Insider
Looking for Exposure to Microsoft Stock (MSFT)? Try These Two ETFs
Microsoft's (MSFT) growth prospects look robust, driven by its push into AI, cloud infrastructure, and enterprise software. Its AI-powered tools, such as Copilot, are now used by over 70% of Fortune 500 companies. Also, the tech giant is expanding its AI footprint globally, including a $400 million investment in Switzerland. Thus, investors looking for exposure to MSFT stock may consider investing in these two ETFs: Vanguard Information Technology ETF (VGT) and iShares Global Tech ETF (IXN). Don't Miss TipRanks' Half-Year Sale Take advantage of TipRanks Premium at 50% off! Unlock powerful investing tools, advanced data, and expert analyst insights to help you invest with confidence. Make smarter investment decisions with TipRanks' Smart Investor Picks, delivered to your inbox every week. Let's take a deeper look at these two ETFs. Vanguard Information Technology ETF The VGT ETF provides investors with exposure to technology stocks, including companies in software, semiconductors, internet, and other technology-related sectors. This ETF tracks the MSCI U.S. Investable Market Index/Information Technology 25/50 Index. MSFT stock constitutes 15.11% of the ETF's holdings. Apart from MSFT, some of the top stocks in the VGT ETF are Nvidia (NVDA), Apple (AAPL), and Broadcom (AVGO). Overall, the ETF has $94.11 billion in assets under management (AUM). Also, it has an expense ratio of 0.09%. The VGT ETF has returned 38.2% in the past three months. Turning to Wall Street, the ETF has a Moderate Buy consensus rating. Of the 321 stocks held, 254 have a Buy, 60 have a Hold, and seven have a Sell ratings. At $725.62, the average VGT ETF price target implies a 7.66% upside potential. iShares Global Tech ETF The IXN ETF is ideal for long-term growth investors seeking global tech exposure. The ETF aims to track the performance of the S&P Global 1200 Information Technology Index, which includes tech giants from the U.S., Europe, and Asia. Importantly, MSFT accounts for 17.75% of IXN's total holdings. Some of the top holdings in IXN ETF include NVDA, Oracle (ORCL), and Palantir (PLTR). Overall, the ETF has $296.33 million in AUM and an expense ratio of 0.68%. Over the past three months, the IXN ETF has generated a return of 37.7%. On TipRanks, IXN has a Moderate Buy consensus rating based on 88 Buys, 32 Holds, and one Sell assigned in the last three months. At $97.95, the average IXN ETF price target implies 4.95% upside potential. Concluding Thoughts ETFs provide indirect exposure to Microsoft, reducing risk compared to investing directly in the stock. Furthermore, ETFs are a liquid and transparent way to participate in the market. Investors seeking ETF recommendations might consider VGT and IXN, as these ETFs offer exposure to MSFT stock.
Yahoo
3 days ago
- Business
- Yahoo
Is This Growth Stock-Heavy Vanguard ETF Worth Doubling Up on in July?
Nvidia, Microsoft, and Apple have contributed significant gains to the S&P 500 over the last decade. Many excellent tech companies make up a fraction of the S&P 500 but are better represented in the Vanguard Information Technology ETF. The tech sector is valued based on future earnings growth, so delivering on expectations is paramount to justify lofty valuations. 10 stocks we like better than Vanguard Information Technology ETF › Investors who doubled up on top growth stocks during the rapid sell-off in April were handsomely rewarded -- as the broader indexes are now hovering around all-time highs. But long-term investors know that the truly massive gains aren't made by timing the market or being fortunate enough to put capital to work during a sell-off. Rather, the rewards come from holding shares in excellent companies or exchange-traded funds (ETFs) long-term and letting those investments compound over time. Despite making new highs, there are still plenty of top tech stocks worth buying now for patient investors. Technology is the highest-weighted sector in the S&P 500 (SNPINDEX: ^GSPC) -- making up nearly a third of the index. The Vanguard Information Technology ETF (NYSEMKT: VGT) closely tracks this sector and charges a mere 0.09% expense ratio, or $9 for every $10,000 invested. Here's why the fund could still be worth buying now, as well as factors that could make it a poor choice for some investors. Ten years ago, Apple and Microsoft had a combined market cap of around $1.1 trillion, and Nvidia was a mere $11 billion company. Today, each of these tech companies has a market cap over $3 trillion -- and over $10.3 trillion combined. Put another way, these three companies have added around $9 trillion in market cap to the S&P 500 in the last decade, while the S&P 500 has added just over $29 trillion. That means Nvidia, Microsoft, and Apple have contributed roughly a third of the gains in the index in the last 10 years. Understanding just how vital these names have been to broader market returns illustrates the impact of asymmetric gains. Today, Nvidia, Microsoft, and Apple make up 18.6% of the Vanguard S&P 500 ETF -- which tracks the index -- and 45.7% in the Vanguard Information Technology ETF. So, if you want outsized exposure to these three companies, the tech sector may pique your interest. It's worth mentioning that while Microsoft and Nvidia stocks hover near all-time highs, Apple has been a noticeable laggard -- down close to 20% year to date. Without that underperformance, the ETF would be up even higher. Outside of those three top holdings, the tech sector offers far more exposure to software companies and the semiconductor industry than is available from an ETF that mirrors the performance of the S&P 500 or Nasdaq Composite (NASDAQINDEX: ^IXIC). In fact, semiconductors make up 28.8% of the Vanguard Tech ETF -- led by Nvidia's 14.2% weighting and Broadcom's 4.5% weighting. Perhaps the most attractive quality of the tech sector is its diversified exposure to artificial intelligence (AI). Chip companies provide the computing power needed to handle increasingly complex AI models. Software companies like Salesforce are using AI to enhance their services through AI agents and other tools. Similarly, Microsoft has integrated AI tools through Copilots across its Microsoft 365 suite, as well as other platforms like GitHub for developers. Microsoft Azure is the No. 2 cloud computing service behind Amazon Web Services. However, it's worth noting that Amazon and Google Cloud parent company, Alphabet, are not in the Vanguard tech ETF because Amazon is in the Vanguard Consumer Discretionary ETF, and Alphabet is in the Vanguard Communications ETF. Many legacy tech companies that spent years underperforming the major benchmarks are undergoing resurgences thanks to AI. International Business Machines, Cisco Systems, and Oracle are examples of veteran tech companies that participate in the AI ecosystem through cloud, hardware, and/or software offerings. In sum, there are many phenomenal growth companies in the tech sector outside of the big three players. However, these companies make up a fraction of the S&P 500 index funds. So, buying directly into the tech sector is a good way to increase the impact of the companies in your portfolio. The Vanguard Tech sector ETF can be an excellent tool for getting exposure to Nvidia, Microsoft, Apple, and hundreds of other tech companies. But before diving headfirst into the ETF, it's worth considering how the holdings will fit into your existing portfolio and if they match your risk tolerance. For example, if you already have a sizable position in one or more of those big three top holdings, then buying the Vanguard Tech ETF may be adding more exposure than you intended. Or if you hold growth-focused ETFs or even an S&P 500 ETF, then you already indirectly own many of the stocks in the Vanguard Tech ETF. So, if you're looking to invest more capital in tech stocks and are OK with boosting your exposure to existing holdings, the Vanguard Tech ETF could be a good idea. Another factor to consider is risk tolerance. Tech has dominated the broader market in recent years, which has inflated the valuations of many tech companies. To justify those valuations, earnings have to continue growing at impressive rates. Nvidia is a textbook example. The stock has skyrocketed to new highs, but so have the company's earnings. Over the last three years, Nvidia's stock price has jumped 835% -- but earnings are up 916% thanks to data center demand. So Nvidia's valuation has remained reasonable because it has sustained earnings growth. But the stock could look expensive if that growth cools off, even for factors outside of the company's control. The tech sector can be highly volatile due to its cyclical nature and valuations based on future growth projections. The Vanguard Tech ETF is only worth considering if you're OK with these risks and how the ETF would fit into your existing portfolio. It may seem counterintuitive to buy stocks or an ETF that has increased so quickly. But the best companies grow into their valuations over time, and the tech sector is full of top companies. All told, the Vanguard Tech ETF may be worth a closer look in July. Another option is to scan the fund's holdings and select individual companies you don't own and want to build a position in. That way, you aren't putting an uncomfortable amount of money into existing holdings. Before you buy stock in Vanguard Information Technology ETF, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the for investors to buy now… and Vanguard Information Technology ETF wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $697,627!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $939,655!* Now, it's worth noting Stock Advisor's total average return is 1,045% — a market-crushing outperformance compared to 178% for the S&P 500. Don't miss out on the latest top 10 list, available when you join . See the 10 stocks » *Stock Advisor returns as of June 30, 2025 John Mackey, former CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool's board of directors. Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool's board of directors. Daniel Foelber has positions in Nvidia. The Motley Fool has positions in and recommends Alphabet, Amazon, Apple, Cisco Systems, International Business Machines, Microsoft, Nvidia, Oracle, Salesforce, and Vanguard S&P 500 ETF. The Motley Fool recommends Broadcom and recommends the following options: long January 2026 $395 calls on Microsoft and short January 2026 $405 calls on Microsoft. The Motley Fool has a disclosure policy. Is This Growth Stock-Heavy Vanguard ETF Worth Doubling Up on in July? was originally published by The Motley Fool Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
3 days ago
- Business
- Yahoo
This Is the Best Vanguard ETF to Buy Right Now, and It's Not Even Close
Traditional portfolio theory warns against overweighting sector funds, but the digital revolution demands new thinking. This Vanguard tech fund has crushed the S&P 500 with 20.3% annual returns over the past 10 years, versus 11.1% for the broader market. This single ETF provides exposure to artificial intelligence (AI), quantum computing, robotics, and the entire technology stack reshaping our economy. 10 stocks we like better than Vanguard Information Technology ETF › Every investing textbook tells you the same thing: Don't put too much money in sector-specific exchange-traded funds (ETFs). Diversify broadly. Own the whole market. This advice made perfect sense -- in 1995. But the economy is undergoing a fundamental transformation that makes the old playbook dangerously obsolete. The Vanguard Information Technology ETF (NYSEMKT: VGT) isn't just another tech fund. It's your ticket to owning the companies building the next economy -- one that is rapidly emerging from the shadows. Look at the performance gap and try not to gasp. Over the past 10 years (2015 to 2025), this Vanguard tech fund has delivered a staggering 20.3% annualized return. The S&P 500 (SNPINDEX: ^GSPC)? A respectable but comparatively pedestrian 11.1%. That 9.2-percentage-point difference might sound modest, but compound it over time, and you're talking about life-changing wealth creation. A $10,000 investment in the Vanguard Information Technology ETF 10 years ago would be worth roughly $62,000 today, versus $30,000 in an S&P 500 fund. This isn't a temporary anomaly driven by tech euphoria. Technology spending is projected to reach $5.74 trillion in 2025 -- a 9.3% increase from 2024. But here's what few investors understand: That figure barely scratches the surface. Technology isn't just growing as a sector. It's absorbing every other sector. Banks? They're technology companies that happen to move money. Retailers? Tech companies that happen to sell products. Auto manufacturers? Software companies wrapped in metal. When everything is technology, owning "just tech" means owning everything. Tech is the foundation of modern society. The "Magnificent Seven" stocks in this fund trade at valuations that make traditional investors uncomfortable. Apple is at 26 times forward earnings. Microsoft stock is commanding a premium of 32 times forward earnings. Nvidia, for its part, trades at over 35 times projected earnings. But here's what the bears miss: We're not pricing in yesterday's growth. We're pricing in tomorrow's revolution. Consider artificial general intelligence (AGI). Five years ago, AGI was science fiction -- something for 2050 or beyond. Today? We're arguably witnessing its primitive birth. ChatGPT can write code, analyze data, and reason through complex problems. It's not true AGI yet, but it's close enough to transform industries. And this primitive version is only getting smarter. Every month brings breakthroughs that would have seemed impossible a year earlier. When AGI fully arrives -- and it's now a question of when, not if -- the economic implications are staggering. McKinsey estimates artificial intelligence (AI) could add $13 trillion to global economic output by 2030. That's the equivalent of adding another economy the size of the United States. The companies building this future deserve premium valuations because they're not just growing revenues. They're creating entirely new categories of human possibility. Yes, the Vanguard Information Technology ETF is top-heavy. Apple, Microsoft, and Nvidia comprise about 45% of the fund right now. Critics point to this concentration as a weakness. They're missing the forest for the trees. These aren't just big companies -- they're the architects of our digital infrastructure. Microsoft's Azure powers the cloud. Nvidia's chips enable AI. Apple's ecosystem defines how billions interact with technology daily. But this fund's real genius lies in what else it owns: over 300 companies building tomorrow's breakthroughs. Palantir Technologies is turning data into strategic advantage. Cadence Design Systems creates the software that designs next-generation chips. Advanced Micro Devices is challenging Intel's dominance. Quantum computing pioneers. Cybersecurity innovators. Robotics manufacturers. The Vanguard Information Technology Index Fund is the big tent of tech. This isn't picking winners in the AI race or betting on which quantum computing start-up will succeed. It's owning the entire ecosystem. When one company stumbles, another surges. When new technologies emerge, they're automatically added. The fund rebalances itself, ensuring you own tomorrow's giants, not just today's. Traditional wisdom says to stay broadly diversified across most, if not all, sectors. But when one sector is rewriting the rules of every business on Earth, traditional wisdom becomes tomorrow's regret. The tried-and-true investing strategies must be redrawn for a world where software eats everything, AI makes decisions, and quantum computers solve the unsolvable. The Vanguard Information Technology ETF isn't just the best Vanguard ETF to buy right now. For investors who understand where the world is heading, it's not even close. Before you buy stock in Vanguard Information Technology ETF, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the for investors to buy now… and Vanguard Information Technology ETF wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $697,627!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $939,655!* Now, it's worth noting Stock Advisor's total average return is 1,045% — a market-crushing outperformance compared to 178% for the S&P 500. Don't miss out on the latest top 10 list, available when you join . See the 10 stocks » *Stock Advisor returns as of June 30, 2025 George Budwell has positions in Apple, Microsoft, Nvidia, Palantir Technologies, and Vanguard Information Technology ETF. The Motley Fool has positions in and recommends Advanced Micro Devices, Apple, Cadence Design Systems, Intel, Microsoft, Nvidia, and Palantir Technologies. The Motley Fool recommends the following options: long January 2026 $395 calls on Microsoft, short August 2025 $24 calls on Intel, and short January 2026 $405 calls on Microsoft. The Motley Fool has a disclosure policy. This Is the Best Vanguard ETF to Buy Right Now, and It's Not Even Close was originally published by The Motley Fool Sign in to access your portfolio
Yahoo
18-06-2025
- Business
- Yahoo
Want Exposure to AI, Quantum Computing, and Robotics? This Vanguard ETF Has It All.
One Vanguard ETF offers instant exposure to AI, quantum computing, and robotics without needing to pick individual winners. Automatic rebalancing ensures you own tomorrow's leaders, not just today's giants. 10 stocks we like better than Vanguard Information Technology ETF › Most investors chase the latest hot tech stock -- frantically researching quantum computing start-ups or trying to identify the next AI winner. They're making investing far more complicated than it needs to be. What if you could own the entire technology revolution with a single investment? The answer lies in a deceptively simple investment vehicle: the exchange-traded fund (ETF). Specifically, one technology ETF has delivered market-crushing returns while requiring zero stock-picking skills from its investors. Here's why this boring fund might be the smartest way to play the most exciting sector in the market today. The Vanguard Group has built one of the market's most powerful wealth-building tools. Since the FAANG-led tech rally took off in earnest around 2016, technology stocks have dominated market returns. The Vanguard Information Technology ETF (NYSEMKT: VGT) has delivered a staggering 19.8% annualized return over the past 10 years, far surpassing the S&P 500's respectable 13% average annual return over the same period. This outperformance isn't a fluke. Technology now represents the beating heart of the global economy, with IT spending projected to reach $5.74 trillion in 2025 -- a 9.3% increase from 2024. But that figure barely scratches the surface. Technology isn't just a sector anymore. It's the very foundation of every industry. Banks are now tech companies that happen to move money. Retailers are tech companies that happen to sell products. Even traditional manufacturers rely on AI-powered robotics, cloud computing, and data analytics to remain competitive. From the smartphone in your pocket to the algorithms that power global supply chains, technology touches every dollar that moves through the modern economy. What's in the Vanguard Information Technology ETF right now? The fund holds over 300 technology stocks, with heavyweights like Nvidia, Microsoft, and Apple leading the charge. These three giants alone account for nearly 45% of the fund's assets as of this writing (June 17, 2025). But here's what makes this ETF special: It also owns smaller companies developing tomorrow's breakthroughs -- from Palantir Technologies in AI-driven data analytics to Cadence Design Systems creating the software that designs next-generation chips. While individual investors scramble to understand which technology will dominate, consider the staggering scale of what's coming: Artificial intelligence: AI is racing toward a market size of $826.7 billion by 2030, with some projections reaching $1.8 trillion. By 2034, this emerging tech market could surpass $3.7 trillion in total value. That's an awe-inspiring opportunity for stock investors, to put it mildly. Quantum computing: Though earlier in its development, it presents an eye-popping $450 billion opportunity by 2040, and that's the conservative estimate. Companies like IBM and Alphabet are racing to achieve true quantum supremacy, a benchmark that could unlock trillions in economic value. Robotics: The global robotics market is forecast to reach $375.8 billion by 2035. The humanoid robot segment alone could reach $243.4 billion by 2035. From Amazon's warehouse automation to surgical robots transforming healthcare, this technology is already reshaping industries, and the best is yet to come. The Vanguard Information Technology ETF provides a front-row seat to all three of these massive market opportunities. The fund's 0.09% expense ratio soundly beats the technology ETF category average of roughly 0.93%. This means you're paying just $9 annually for every $10,000 invested -- a fraction of what comparable funds charge. This cost advantage becomes increasingly powerful over time. On a $100,000 investment growing at 10% annually, the difference between a 0.09% and 0.8% expense ratio adds up to over $40,000 in extra returns over 20 years. For long-term investors, these savings compound into serious wealth. Here's the uncomfortable truth: Keeping up with technology's breakneck pace is nearly impossible for individual investors. By the time you've researched one quantum computing company, three competitors have announced breakthroughs. The space simply moves too fast for part-time stock pickers. This ETF provides the intelligent middle ground -- broad exposure to tech's unlimited upside without the impossible task of predicting which company will dominate each emerging field. For investors seeking technology exposure without the headaches of constant research and rebalancing, this boring fund might be the smartest tech investment you'll ever make. This ETF solves the problem through automatic rebalancing. When new tech leaders emerge, they're added to the fund. When former giants stumble, they're reduced or removed. Since launching in 2004, this fund has positioned investors to capture every major tech transformation. Those who bought at inception were perfectly positioned to capitalize on the iPhone revolution, the cloud computing boom, and the AI explosion. They owned the infrastructure before it became essential -- from semiconductors that would power smartphones to the software companies that would move everything to the cloud. Today, the fund holds companies developing quantum processors, AI chips, and robotics software. You'll own whatever company dominates the technologies of 2030, 2040, and beyond -- all without making a single trade. Before you buy stock in Vanguard Information Technology ETF, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the for investors to buy now… and Vanguard Information Technology ETF wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $660,821!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $886,880!* Now, it's worth noting Stock Advisor's total average return is 791% — a market-crushing outperformance compared to 174% for the S&P 500. Don't miss out on the latest top 10 list, available when you join . See the 10 stocks » *Stock Advisor returns as of June 9, 2025 Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool's board of directors. John Mackey, former CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool's board of directors. George Budwell has positions in Apple, Microsoft, Nvidia, Palantir Technologies, and Vanguard Information Technology ETF. The Motley Fool has positions in and recommends Alphabet, Amazon, Apple, Cadence Design Systems, International Business Machines, Microsoft, Nvidia, and Palantir Technologies. The Motley Fool recommends the following options: long January 2026 $395 calls on Microsoft and short January 2026 $405 calls on Microsoft. The Motley Fool has a disclosure policy. Want Exposure to AI, Quantum Computing, and Robotics? This Vanguard ETF Has It All. was originally published by The Motley Fool
Yahoo
13-06-2025
- Business
- Yahoo
This Tech ETF Could Mint $500,000, or More
The Vanguard Information Technology ETF has averaged around 12% annual returns since its January 2004 inception. Investors can cross the $500,000 mark by making relatively small and consistent investments through the years. Apple, Microsoft, and Nvidia make up over 45% of the ETF, so investors should watch out for overlap with other investments. 10 stocks we like better than Vanguard Information Technology ETF › One of the best things to happen to stock investing is the introduction of exchange-traded funds (ETFs). Instead of having to invest in many different stocks to achieve diversification, investors can invest in a single or a few ETFs and instantly be invested in hundreds or thousands of companies. Leaning on ETFs doesn't have to mean sacrificing return potential, either. There are plenty of ETFs on the market that historically outperform many top companies. One of those is the Vanguard Information Technology ETF (NYSEMKT: VGT). This tech-focused ETF has the potential to turn monthly investments as low as $100 into $500,000 or more. If you're looking to add tech stocks to your portfolio, this ETF can be a great starting point. It contains over 300 stocks from various industries within the tech sector, including semiconductors (26.8% of the ETF), systems software (21%), technology hardware (18.8%), application software (15.9%), and IT consulting (3.8%). The tech sector includes many different industries, so the ETF's diversity even within the tech sector gives you broader exposure to its full potential. You don't want to put all your focus on semiconductors and miss the growth of software, put all your focus on hardware and miss the growth of cloud computing, or put all your focus on IT services and miss the growth of cybersecurity. Since its January 2004 inception, this ETF has noticeably outperformed the market (based on S&P 500 returns), up 1,190% compared to 420%. That's an annual average of around 12% versus 8%. When you look at just the past decade, the ETF's returns have been even more impressive, averaging 19% annual returns. Averaging 19% and 12% over the long term is an ideal scenario, but it shouldn't be expected. The market historically averaged around 10% annual returns over the long haul, which is a safer expectation. In either case, here's how much you could earn from this ETF by investing $500 monthly and averaging different returns: Years Invested 10% Average Annual Returns 12% Average Annual Returns 19% Average Annual Returns 15 $189,200 $222,000 $394,500 20 $340,100 $427,800 $981,700 25 $582,100 $789,000 $2.37 million 30 $970,300 $1.42 million $5.69 million Data source: Calculations by author. Values are rounded down to the nearest hundred and take into account the ETF's expense ratio. Even if you don't have $500 available to invest monthly, you can still hit the $500,000 mark by only investing $100. What you don't have in money, you can make up with time and taking advantage of the power of compound earnings. Years Invested 10% Average Annual Returns 12% Average Annual Returns 19% Average Annual Returns 15 $37,800 $44,400 $78,900 20 $68,000 $85,500 $196,300 25 $116,400 $157,800 $475,500 30 $194,000 $284,500 $1.13 million Data source: Calculations by author. Values are rounded down to the nearest hundred and take into account the ETF's expense ratio. Past results don't guarantee future performance, so you never want to assume that this ETF (or any stock) will maintain these returns. However, it's positioned to return great long-term value. One downside to this ETF is its concentration in Apple, Microsoft, and Nvidia stocks. The three combine to make up over 45% of the ETF. That's a lot for any ETF, but especially one with over 300 companies. Here are the ETF's top 10 holdings: Company Percentage of the ETF Apple 17.15% Microsoft 14.32% Nvidia 14.20% Broadcom 4.44% Salesforce 1.75% Palantir Technologies (Class A) 1.73% Oracle 1.59% Cisco Systems 1.59% IBM 1.55% ServiceNow 1.36% Data source: Vanguard. Percentages as of April 30. Granted, Apple, Microsoft, and Nvidia are some of the world's top companies, but that's still a lot riding on just them. Ideally, this ETF would be a complementary piece to your portfolio, rather than the bulk of it. This is especially true for people invested in the S&P 500, because these companies also make up a good portion of the index. The tech sector as a whole can be volatile, so the same applies to this ETF. The best you can do is expect it, ignore it, stay consistent, and trust the long-term returns. Before you buy stock in Vanguard Information Technology ETF, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the for investors to buy now… and Vanguard Information Technology ETF wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $657,871!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $875,479!* Now, it's worth noting Stock Advisor's total average return is 998% — a market-crushing outperformance compared to 174% for the S&P 500. Don't miss out on the latest top 10 list, available when you join . See the 10 stocks » *Stock Advisor returns as of June 9, 2025 Stefon Walters has positions in Apple and Microsoft. The Motley Fool has positions in and recommends Apple, Cisco Systems, International Business Machines, Microsoft, Nvidia, Oracle, Palantir Technologies, Salesforce, and ServiceNow. The Motley Fool recommends Broadcom and recommends the following options: long January 2026 $395 calls on Microsoft and short January 2026 $405 calls on Microsoft. The Motley Fool has a disclosure policy. This Tech ETF Could Mint $500,000, or More was originally published by The Motley Fool Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
