Should You Buy Vanguard’s Hottest Sector-Based ETF?

From Nasdaq: 2024-05-30 06:31:00

Vanguard offers ETFs with low fees in various sectors, with the Communication Services ETF (VOX) performing the best this year. Paradigm shifts in the communications sector have led to disruptive technology like streaming services and mobile phones. The Vanguard ETF is well-balanced with growth, value, and income, making it an attractive investment option.

Alphabet and Meta Platforms make up 45% of the Vanguard Communications Services ETF, with the sector becoming more top-heavy due to rebalancing. Despite being at all-time highs, these companies are trading at reasonable valuations, making them attractive investment opportunities. The ETF has seen significant gains in 2023, but remains an inexpensive option with excellent earnings growth potential.

The Vanguard Communication Services ETF remains an attractive investment option due to trends like artificial intelligence, virtual reality, and the metaverse. Despite potentially facing short-term volatility, the long-term outlook remains positive. Investors should consider the growth potential of the top 10 stocks identified by The Motley Fool Stock Advisor team before investing in this ETF.



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