Investors who lacked exposure to the information technology sector over the last decade likely underperformed the S&P 500 by a wide margin. The sector is home to giants like Nvidia, Apple, and Microsoft. The Vanguard Information Technology ETF invests in over 300 stocks across 12 sub-segments, with a 35.1% weighting in the S&P 500.

Buying a slice of the entire information technology sector has never been simpler thanks to the Vanguard Information Technology ETF. The ETF invests in 314 stocks, with a significant portion of its portfolio in Nvidia, Microsoft, and Apple. The semiconductor segment, which includes companies like Broadcom and Advanced Micro Devices, is a major player in the AI industry.

Apple, Microsoft, and Oracle are leading the AI charge, with Apple launching Apple Intelligence to power AI features on its devices. Palantir, a top AI stock, offers platforms like Gotham and Foundry for data extraction and AI development. The Vanguard ETF also holds other powerhouse AI stocks like Adobe and Datadog.

The Vanguard Information Technology ETF has outperformed the S&P 500 with a compound annual return of 14.2% since 2004. It’s ideal for investors looking to gain exposure to AI and the tech sector. Excluding tech from a portfolio can lead to sluggish returns, so owning stocks like Nvidia, Apple, and Microsoft through the ETF is crucial for keeping pace with the market.

Read more at Nasdaq: Meet the Spectacular Vanguard ETF With 43.6% of Its Portfolio Invested in Nvidia, Apple, and Microsoft