Over the past decade, the Vanguard Information Technology ETF (VGT) has seen impressive growth, up by close to 670% compared to the S&P 500’s 270% gain. Much of this growth can be attributed to the artificial intelligence (AI) boom, but the ETF may not be the best choice for exposure to AI stocks.

The Vanguard Information Technology ETF is heavily concentrated in the top 10 holdings, with nearly 59% of its value coming from companies like Nvidia, Apple, and Microsoft. However, important players in the AI industry like Alphabet, Amazon, and Meta Platforms are not included in the ETF due to sector classifications.

Missing key companies like Amazon and Alphabet means the Vanguard Information Technology ETF is not fully exposed to the AI megatrend. These companies play a crucial role in providing the digital storage and computing power needed for AI models, making their absence a significant gap in the ETF’s portfolio.

Before investing in the Vanguard Information Technology ETF, consider that it may not provide the exposure to AI stocks that you are looking for. The Motley Fool Stock Advisor team has identified 10 other stocks with potential for monster returns, so it may be worth exploring other options for your investment portfolio.

Read more at Nasdaq: Interested in AI Stocks? Here’s Why One Popular Vanguard Tech ETF Might Not Be a Good Choice.