Vanguard Information Technology ETF (VGT) has turned $10,000 into over $28,000 in five years

From Nasdaq: 2024-10-17 04:52:00

Exchange-traded funds (ETFs) are like the tortoise in Aesop’s fable – slow and steady wins the race. However, some funds, like the Vanguard Information Technology ETF (VGT), have sprinted ahead, turning $10,000 into over $28,000 in just five years. VGT focuses on AI stocks and has seen rapid growth.

The top holdings of VGT include Apple, Microsoft, and Nvidia, all with strong AI credentials. These stocks have seen massive gains over the last five years. VGT’s success can also be attributed to the rapid adoption of AI and low costs, with an annual expense ratio below the peer average.

Despite VGT’s strong momentum, valuation could pose a challenge with high price-to-earnings ratios. However, as we’re still in the early stages of the AI era, tech stocks focusing on AI could continue to deliver exceptional returns. While volatility is a risk, VGT remains a good pick for long-term investors.



Read more at Nasdaq: 1 Vanguard ETF That’s Turned $10,000 Into Over $28,000 in Just 5 Years