Vanguard Information Technology ETF has surged 1,310% in 20 years, driven by AI technology growth.

From Nasdaq: 2024-06-07 05:35:00

The Vanguard Information Technology ETF (NYSEMKT: VGT) outperformed the S&P 500 by returning 1,310% over the last two decades. Artificial intelligence could drive continued growth in the sector, with spending on AI expected to rise by 37% annually through 2030. The ETF includes top holdings like Microsoft, Apple, and Nvidia, positioning investors to benefit from AI technology.

The information technology sector has been a standout performer in the last 10 and 20 years, beating the S&P 500. This trend is driven by digital transformation and the adoption of technologies like cloud computing, cybersecurity, and e-commerce. As artificial intelligence continues to grow, companies that provide AI-related services could be big winners.

The Vanguard Information Technology ETF tracks 313 tech stocks, including industry giants like Microsoft and Apple. With a low expense ratio of 0.1%, the ETF offers exposure to companies well-positioned to benefit from AI. However, the fund’s high concentration in a few stocks poses a risk of volatility, so investors should diversify their portfolios accordingly.

Considering the potential for growth in the technology sector driven by AI, investing in the Vanguard Information Technology ETF could be a strategic move. However, investors should also explore other stock options identified by experts to maximize returns. Stock Advisor has a history of outperforming the S&P 500 and provides valuable insights to help investors make informed decisions.



Read more at Nasdaq: 1 Vanguard Index Fund Up 1,310% in 20 Years to Buy for the Artificial Intelligence (AI) Bull Market