Latest news with #VanguardInformationTechnology
Yahoo
9 hours ago
- 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
10-06-2025
- Business
- Yahoo
Apple Unveils Big UI Overhaul at WWDC: ETFs in Focus
Apple Inc. AAPL unveiled a major revamp of its entire software ecosystem at its annual Worldwide Developers Conference (WWDC), introducing what it calls the most significant UI changes in years. However, the event failed to impress investors due to a lack of AI updates. As such, Apple shares dropped 1.2% on the has put ETFs with the largest allocation to the tech titan in focus. These are Vanguard Information Technology ETF VGT, iShares Global Tech ETF IXN, MSCI Information Technology Index ETF FTEC, iShares US Technology ETF IYW and Technology Select Sector SPDR Fund XLK (see: all the Technology ETFs here). The highlight of the event was Apple's new 'Liquid Glass' design language, a unified and translucent UI framework being rolled out across iPhone, iPad, Mac, Watch, TV and Vision Pro. This marks Apple's biggest aesthetic leap since iOS 7 in 2013. From an investment standpoint, the move could drive strong upgrade cycles, especially for users still on older devices, incentivizing them to stay within Apple's ecosystem. The iPhone maker sprinkled in new features under the Apple Intelligence banner, such as live translation in Messages and FaceTime, Genmoji or personalized AI-generated emojis, Image Playground - an AI image generation tool, and Smarter Visual Intelligence and Spotlight these enhancements are underwhelming in comparison to the full-stack AI platforms unveiled by rivals Microsoft (Copilot+) and Google (Gemini) (read: Why Big Tech Stocks Are Powering Market Gains Again). Apple showcased a major software overhaul, introducing iOS 26, macOS Tahoe, iPadOS 26, watchOS 26, tvOS 26 and visionOS 26. iOS 26 brings adaptive UI, a Games hub and enhanced call screening. iPadOS 26 further blurs the line with macOS, featuring full window resizing, Preview integration and enhanced multitasking. macOS Tahoe now integrates Live Activities in the menu bar, improved Spotlight, and even native Phone app support for seamless call handling. watchOS 26 has introduced a Notes app, wrist gestures, and smarter audio. tvOS 26 allows AirPlay speaker defaults and revamps Apple TV+ UI. visionOS 26 focuses on productivity and immersive content alignment. Vanguard Information Technology ETF (VGT)Vanguard Information Technology ETF manages $87.9 billion in its asset base and provides exposure to 307 technology stocks. It currently tracks the MSCI US Investable Market Information Technology 25/50 Index. Apple takes the top spot, accounting for a 17.1% share. Vanguard Information Technology ETF has an expense ratio of 0.09%, whereas volume is solid at nearly 546,000 shares. It has a Zacks ETF Rank #1 (Strong Buy).iShares Global Tech ETF (IXN) iShares Global Tech ETF provides exposure to electronics, computer software and hardware, and information technology companies by tracking the S&P Global 1200 Information Technology 4.5/22.5/45 Capped Index. Holding 119 stocks in its basket, Apple occupies the second spot with a 15.8% share. iShares Global Tech ETF has amassed $5.1 billion in its asset base and trades in a good volume of 162,000 shares a day, on average. The expense ratio is 0.41%. MSCI Information Technology Index ETF (FTEC)MSCI Information Technology Index ETF is home to 293 technology stocks with an AUM of $13.1 billion. It follows the MSCI USA IMI Information Technology Index. Apple occupies the third spot at 14.7% share in the basket. MSCI Information Technology Index ETF has an expense ratio of 0.08%, while volume is solid at 345,000 shares a day. It has a Zacks ETF Rank #1 (read: ETFs Poised to Win in the MSFT vs. NVDA Market Cap Battle).iShares US Technology ETF (IYW)iShares Dow Jones US Technology ETF tracks the Russell 1000 Technology RIC 22.5/45 Capped Index, giving investors exposure to 139 U.S. electronics, computer software and hardware, and informational technology companies. Apple is the third firm, making up for 13.6% of the assets. iShares US Technology ETF has an AUM of $19.8 billion and charges 39 bps in fees and expenses. Volume is good as it exchanges 889,000 shares a day. It has a Zacks ETF Rank # Sector SPDR Technology ETF (XLK)Select Sector SPDR Technology ETF is the most popular and liquid ETF in the technology space, with AUM of $73.7 billion and an average daily volume of 6 million shares. It offers broad exposure to the technology sector and follows the Technology Select Sector Index. Select Sector SPDR Technology ETF holds about 69 securities in its basket, with Apple occupying the third position at 12.2%. Select Sector SPDR Technology ETF charges 8 bps in fees per year from investors and has a Zacks ETF Rank #1. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Apple Inc. (AAPL) : Free Stock Analysis Report Technology Select Sector SPDR ETF (XLK): ETF Research Reports Fidelity MSCI Information Technology Index ETF (FTEC): ETF Research Reports iShares U.S. Technology ETF (IYW): ETF Research Reports Vanguard Information Technology ETF (VGT): ETF Research Reports iShares Global Tech ETF (IXN): ETF Research Reports This article originally published on Zacks Investment Research ( Zacks Investment Research 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
Time of India
19-05-2025
- Business
- Time of India
$100 a Month, half a million later? Why tech ETFs are the new investor favorite
Amid a resurgent stock market , investors are increasingly exploring passive yet high-yielding strategies to build long-term wealth. One option gaining popularity is a targeted tech ETF, which could potentially transform small monthly investments into substantial portfolios with minimal effort, as per a report by The Motley Fool. Recent gains in the broader markets, particularly the S&P 500's nearly 20% surge since April, have reignited interest in exchange-traded funds. Experts suggest that amid ongoing economic volatility, technology-based ETFs with strong historical performance could offer a compelling solution for those seeking reliable, hands-off growth. Tech ETFs: A Low-Maintenance Path to Long-Term Wealth Exchange-traded funds (ETFs) are investment vehicles that combine various stocks into a single portfolio, allowing individuals to diversify without having to manage each asset separately. Among these, tech ETFs are considered particularly promising due to the enduring growth of the technology sector. Live Events One such example is the Vanguard Information Technology ETF , known for its robust composition and long-term consistency, as mentioned in a report by The Motley Fool. This fund includes major players across the tech industry, offering exposure to innovative companies while spreading risk across a wide range of assets. Crucially, such funds are designed for investors looking to 'set it and forget it.' Once capital is committed, investors can simply maintain their contributions over time and benefit from compounded growth. The $100-a-Month Strategy: How It Grows According to financial modeling using average historical returns, a monthly investment of just $100 in a tech ETF earning approximately 19% annually could reach a value close to $500,000 over a 25-year period, as per a report by The Motley Fool. Even under more conservative projections—around 13% annual growth—the portfolio could still cross the half-million mark with slightly more time. Long-term projections show that, in the most optimistic case, such a strategy could potentially generate upwards of $3 million over a 35-year horizon, assuming consistent returns and reinvestment of gains. This compounding growth trajectory underscores the benefits of staying invested over multiple market cycles, especially in a dynamic and innovation-driven segment like technology. Why the Stock Market's Momentum Favors Tech ETFs The current stock market rally has been driven in part by strong corporate earnings and renewed optimism around artificial intelligence, cloud computing, and semiconductor development. These themes are well-represented within top-performing tech ETFs, giving such funds a structural advantage in capitalizing on broader economic trends. Although technology stocks can experience short-term volatility, historically they have demonstrated resilience and outperformance over the long term. The Vanguard Information Technology ETF, for example, has weathered multiple downturns and consistently rebounded with strong returns. Final Considerations for Investors While some high-performing individual stocks like Nvidia have generated spectacular returns for early investors, tech ETFs offer a more balanced and less risky approach to tapping into the sector's growth. They eliminate the need for deep research or active management, making them an attractive option for new and seasoned investors alike. In the current environment, regular contributions to a reliable tech ETF could be a prudent path to long-term financial security. For those with patience and discipline, starting with just $100 a month might prove to be a decision worth hundreds of thousands of dollars in the future. FAQs What is a tech ETF and why is it popular now? A tech ETF (exchange-traded fund) is a basket of technology-related stocks combined into a single investment vehicle. It offers diversification and exposure to the fast-growing tech sector. How does investing $100 a month in a tech ETF work? By consistently investing $100 each month into a tech ETF with strong historical performance, investors can take advantage of compounding returns.
