Latest news with #VanguardInformationTechnologyETF
Yahoo
9 hours ago
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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
5 days ago
- 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
Yahoo
6 days ago
- Business
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Should You Invest in the Vanguard Information Technology ETF (VGT)?
The Vanguard Information Technology ETF (VGT) was launched on 01/26/2004, and is a passively managed exchange traded fund designed to offer broad exposure to the Technology - Broad segment of the equity market. While an excellent vehicle for long term investors, passively managed ETFs are a popular choice among institutional and retail investors due to their low costs, transparency, flexibility, and tax efficiency. Additionally, sector ETFs offer convenient ways to gain low risk and diversified exposure to a broad group of companies in particular sectors. Technology - Broad is one of the 16 broad Zacks sectors within the Zacks Industry classification. It is currently ranked 7, placing it in top 44%. The fund is sponsored by Vanguard. It has amassed assets over $88.65 billion, making it the largest ETF attempting to match the performance of the Technology - Broad segment of the equity market. VGT seeks to match the performance of the MSCI US Investable Market Information Technology 25/50 Index before fees and expenses. The MSCI US Investable Market Information Technology 25/50 Index is designed to transition in and out of securities affected by pending updates to the information technology sector. Cost is an important factor in selecting the right ETF, and cheaper funds can significantly outperform their more expensive counterparts if all other fundamentals are the same. Annual operating expenses for this ETF are 0.09%, making it one of the least expensive products in the space. It has a 12-month trailing dividend yield of 0.51%. Even though ETFs offer diversified exposure which minimizes single stock risk, it is still important to look into a fund's holdings before investing. Luckily, most ETFs are very transparent products that disclose their holdings on a daily basis. This ETF has heaviest allocation in the Information Technology sector--about 99.90% of the portfolio. Looking at individual holdings, Apple Inc (AAPL) accounts for about 17.15% of total assets, followed by Microsoft Corp (MSFT) and Nvidia Corp (NVDA). So far this year, VGT has gained about 1.32%, and it's up approximately 13.04% in the last one year (as of 06/12/2025). During this past 52-week period, the fund has traded between $470.37 and $647.97. The ETF has a beta of 1.24 and standard deviation of 25.61% for the trailing three-year period, making it a medium risk choice in the space. With about 309 holdings, it effectively diversifies company-specific risk. Vanguard Information Technology ETF holds a Zacks ETF Rank of 1 (Strong Buy), which is based on expected asset class return, expense ratio, and momentum, among other factors. Because of this, VGT is an outstanding option for investors seeking exposure to the Technology ETFs segment of the market. There are other additional ETFs in the space that investors could consider as well. IShares U.S. Technology ETF (IYW) tracks Dow Jones U.S. Technology Index and the Technology Select Sector SPDR ETF (XLK) tracks Technology Select Sector Index. IShares U.S. Technology ETF has $20.15 billion in assets, Technology Select Sector SPDR ETF has $75 billion. IYW has an expense ratio of 0.39% and XLK charges 0.08%. To learn more about this product and other ETFs, screen for products that match your investment objectives and read articles on latest developments in the ETF investing universe, please visit Zacks ETF Center. 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 Vanguard Information Technology ETF (VGT): ETF Research Reports Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report NVIDIA Corporation (NVDA) : Free Stock Analysis Report Technology Select Sector SPDR ETF (XLK): ETF Research Reports iShares U.S. Technology ETF (IYW): 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
Yahoo
30-05-2025
- Business
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SPY Attracts $2.3B as Nvidia Earnings Boost Markets
The SPDR S&P 500 ETF Trust (SPY) pulled in $2.3 billion on Thursday, increasing its total assets to just over $601 billion, according to data provided by FactSet. The massive inflows came as markets climbed, with the S&P 500 rising 0.4% after Nvidia Corp.'s (NVDA) strong quarterly results helped offset concerns over ongoing tariff policy uncertainty. The Invesco QQQ Trust (QQQ) attracted $2.2 billion as tech stocks rallied following Nvidia's earnings beat, while the Vanguard Information Technology ETF (VGT) gained $1.1 billion. The SPDR Gold Shares (GLD) pulled in $486.8 million, and the iShares Bitcoin Trust ETF (IBIT) added nearly $481 million. The SPDR Dow Jones Industrial Average ETF Trust (DIA) saw the largest outflows at $547.7 million despite the Dow gaining 117 points. The iShares Gold Trust (IAU) lost $311.3 million, while the Financial Select Sector SPDR Fund (XLF) experienced outflows of $290.8 million. U.S. equity ETFs dominated with $6.8 billion in inflows, while U.S. fixed income collected $1.7 billion. Overall, ETFs attracted $10.5 billion amid judicial developments surrounding President Donald Trump's reciprocal tariffs, though an appeals court reinstated the levies after a lower court initially vacated them. Ticker Name Net Flows ($, mm) AUM ($, mm) AUM % Change SPY SPDR S&P 500 ETF Trust 2,262.57 601,099.28 0.38% QQQ Invesco QQQ Trust Series I 2,179.58 333,917.09 0.65% VGT Vanguard Information Technology ETF 1,124.23 86,733.51 1.30% GLD SPDR Gold Shares 486.75 98,687.67 0.49% IBIT iShares Bitcoin Trust ETF 480.96 71,308.81 0.67% LQD iShares iBoxx $ Investment Grade Corporate Bond ETF 363.60 30,606.26 1.19% SHLD Global X Defense Tech ETF 343.89 2,532.24 13.58% NULG Nuveen ESG Large-Cap Growth ETF 282.20 1,834.30 15.38% SMH VanEck Semiconductor ETF 278.66 22,411.78 1.24% QQQM Invesco NASDAQ 100 ETF 260.67 48,136.36 0.54% Ticker Name Net Flows ($, mm) AUM ($, mm) AUM % Change DIA SPDR Dow Jones Industrial Average ETF Trust -547.72 37,789.82 -1.45% IAU iShares Gold Trust -311.25 45,816.00 -0.68% XLF Financial Select Sector SPDR Fund -290.82 49,505.06 -0.59% IVV iShares Core S&P 500 ETF -265.73 580,169.91 -0.05% RSP Invesco S&P 500 Equal Weight ETF -246.36 70,958.61 -0.35% EMXC iShares MSCI Emerging Markets ex China ETF -234.08 14,045.01 -1.67% BIL SPDR Bloomberg 1-3 Month T-Bill ETF -220.09 44,159.38 -0.50% IWF iShares Russell 1000 Growth ETF -179.30 105,048.71 -0.17% NVDL GraniteShares 2x Long NVDA Daily ETF -177.85 3,779.92 -4.71% EXI iShares Global Industrials ETF -152.45 898.68 -16.96% Net Flows ($, mm) AUM ($, mm) % of AUM Alternatives 1.18 9,967.31 0.01% Asset Allocation 73.06 24,665.24 0.30% Commodities ETFs 318.55 210,567.46 0.15% Currency 541.99 146,534.72 0.37% International Equity 1,084.98 1,781,749.56 0.06% International Fixed Income 148.14 289,989.85 0.05% Inverse -157.79 14,667.48 -1.08% Leveraged 8.16 119,293.57 0.01% US Equity 6,827.64 6,758,710.16 0.10% US Fixed Income 1,669.76 1,659,772.12 0.10% Total: 10,515.67 11,015,917.45 0.10% Disclaimer: All data as of 6 a.m. Eastern time the date the article is published. Data are believed to be accurate; however, transient market data are often subject to subsequent revision and correction by the | © Copyright 2025 All rights reserved 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
29-05-2025
- Business
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3 Unstoppable Vanguard ETFs I'm Buying and Holding Forever -- Even if a Recession Is Coming
With the market fluctuating wildly, it's more important than ever to invest in the right places. ETFs can help balance risk and reward, especially during periods of volatility Even if a recession is coming, I'm continuing to stock up on these three Vanguard funds. 10 stocks we like better than Vanguard Information Technology ETF › If the recent stock market rollercoaster has you feeling nauseated, you're not alone. Investor sentiment has been swinging wildly in recent months, with 43% of investors feeling optimistic about the market in January to only 19% in March to around 38% most recently, according to weekly surveys from the American Association of Individual Investors. Recession probabilities have also shifted substantially. In March, analysts at J.P. Morgan estimated a 40% chance of a recession beginning in 2025. That number then increased to 60% in April, and as of May 19, it's now down to "below 50%." Much of the volatility centers around tariff policies, which, as we've seen in recent months, can change on a dime. Rather than trying to invest at just the right moment, it's often safer to stay in the market for the long haul, regardless of what happens in the coming weeks or months. If you're looking for a few Vanguard ETFs that can provide some stability while still supercharging your savings, these are three that I'm planning to buy and hold for as long as I can -- even if a recession is looming. During periods of volatility, one of the safer funds you can own is an S&P 500 ETF. The Vanguard S&P 500 ETF (NYSEMKT: VOO) tracks the S&P 500 (SNPINDEX: ^GSPC), meaning it includes stocks from all 500 companies within the index. Companies within the S&P 500 are industry leaders and among the largest stocks in the world, which can reduce your risk substantially. Many of these businesses have been around for decades, surviving several recessions and bear markets along the way. If any stocks are likely to survive future volatility, it's those in the S&P 500. The Vanguard S&P 500 ETF, specifically, can be a smart buy due to its low fees. Its expense ratio is just 0.03%, meaning you'll pay $3 per year in fees for every $10,000 in your account. With some funds charging expense ratios of 1% or more, the Vanguard S&P 500 ETF could help save you thousands of dollars in fees over time. The Vanguard Growth ETF (NYSEMKT: VUG) is a broadly diversified fund that spans multiple market sectors, with a focus on stocks that have the potential for above-average returns. It contains 166 stocks, with around 57% of them coming from the tech industry. (For context, only around 30% of the Vanguard S&P 500 ETF is dedicated to the tech sector.) One of the advantages of this fund is that it's diverse enough to help limit risk, but the heavy focus on tech stocks can still set you up for substantial returns. With over 100 stocks from 11 different sectors, you won't be hit quite as hard if one industry or stock takes a substantial blow. At the same time, though, if tech stocks continue to thrive like they have in recent decades, you could earn significantly higher-than-average returns. Over the past 10 years alone, the Vanguard Growth ETF has earned total returns of close to 279% -- compared to just 181% for the Vanguard S&P 500 ETF. If you had invested $10,000 back then, you'd have around $38,000 or $28,000, respectively, by today. The Vanguard Information Technology ETF (NYSEMKT: VGT) goes all-in on tech, with 307 stocks from all corners of the technology industry. This ETF is the riskiest of the three, but it also has the most potential for higher earnings. Over the last 10 years, it's more than doubled the total returns of the S&P 500 while also significantly outperforming the Vanguard Growth ETF. If you'd invested $10,000 in this ETF a decade ago, you'd have close to $56,000 by today. The caveat with this ETF, though, is its risk level. Investing solely in one industry -- especially the tech sector -- raises your risk substantially. Tech stocks are often hit hardest during market downturns, so if you invest in this ETF, be prepared for greater short-term volatility. That said, it can be a smart addition to an already well-balanced portfolio. Investing in the Vanguard Information Technology ETF along with the S&P 500 ETF, for example, can provide greater protection against recessions as well as potential for above-average returns. There's no way to know for sure whether a recession or bear market is looming later this year, but it doesn't hurt to prepare your portfolio just in case. By balancing risk and reward while keeping a long-term outlook, you're more likely to pull through anything the market throws at you. 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 $653,389!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $830,492!* Now, it's worth noting Stock Advisor's total average return is 982% — a market-crushing outperformance compared to 171% 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 May 19, 2025 Katie Brockman has positions in Vanguard Index Funds-Vanguard Growth ETF, Vanguard Information Technology ETF, and Vanguard S&P 500 ETF. The Motley Fool has positions in and recommends Vanguard Index Funds-Vanguard Growth ETF and Vanguard S&P 500 ETF. The Motley Fool has a disclosure policy. 3 Unstoppable Vanguard ETFs I'm Buying and Holding Forever -- Even if a Recession Is Coming 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
