Is Vanguard Information Technology Index Fund a good investment?
Vanguard Information Technology ETF holds a Zacks ETF Rank of 1 (Strong Buy), which is based on expected asset class return, expense ratio, and momentum, among other factors. Because of this, VGT is an outstanding option for investors seeking exposure to the Technology ETFs segment of the market.
The Vanguard Information Technology Index Fund is a technology fund. The assets in the fund include both U.S. and non-U.S. stocks in high tech areas such as semiconductors, software and networking. The fund holds technology stocks of all sizes, but the largest companies account for the majority of its performance.
Vanguard Information Technology ETF seeks to track the performance of a benchmark index that measures the investment return of information technology stocks.
- Fidelity Advisor® Semiconductors Fund.
- Fidelity® Select Technology Portfolio.
- Columbia Seligman Tech & Info Fd.
- Columbia Seligman Global Technology Fund.
- Fidelity Advisor® Technology Fund.
- Fidelity® Select Semiconductors Port.
- Columbia Global Technology Growth Fund.
- Technology Select Sector SPDR Fund (XLK)
- Vanguard Growth ETF (VUG)
- Vanguard Mega Cap Growth ETF (MGK)
- Vanguard Information Technology Index (VGT)
- ARK Innovation ETF (ARKK)
- Invesco QQQ ETF (QQQ)
- Direxion Daily Technology Bull 3x Shares (TECL)
VTI is a better candidate to play the mean reversion trade, is more well-rounded, and is available at cheaper valuations. VGT has a solid track record of mitigating risk and delivering ample returns, whilst it also appears to have the requisite earnings and growth potential to justify its forward valuations.
Fastest growing Vanguard funds worldwide in May 2022, by one year return. The fastest growing investment fund managed by U.S. asset management company Vanguard is the Vanguard Energy Index Fund. Over the year to May 1, 2022, the mutual fund generated an annual return of 60.64 percent.
Technology Mutual Funds, or IT Sector Mutual Funds, generated stellar returns in the calendar year 2020 and 2021, delivering average returns of 59.4% and 67.3%, respectively. ICICI Pru Technology Fund turned out to be the top performer in the category, generating 77.8% returns in absolute terms in CY 2021.
Artificial intelligence (AI) isn't coming to the retirement plan space. It's already here. Vanguard uses it every day in an effort to help participants own their future.
VGT (an index fund) is supposed to be a Vanguard alternative to QQQ. Its current benchmark is the MSCI US Investable Market Information Technology 25/50 Transition Index. Wright T: Technology companies have only outperformed recently.
Is Ftec better than VGT?
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Key characteristics.
| VGT | FTEC | |
|---|---|---|
| Daily Std Dev | 29.93% | 29.77% |
| Max Drawdown | -32.10% | -31.90% |
Which stock has the highest allocation in one of the most popular Tech ETFs - Vanguard Information Technology ETF (VGT)? Apple has the highest allocation of (19.3%) in the Vanguard Information Technology ETF.
Technology stocks are perennially one of the hottest areas of the stock market. Investors closely follow this sector because of its track record of scorching returns and the potential for more in the future. So it can be worth keeping an eye on tech stocks and tracking the hot performers.
Schwab U.S. Broad Market ETF (SCHB)
Information technology makes up 27% of the holdings, and healthcare makes up 13.39 % of the fund.
A technology ETF is an exchange-traded fund that invests in companies in the technology sector. Tech ETFs include companies that create and distribute hardware, such as computers, smartphones, semiconductors and other electronics, and software, such as artificial intelligence, cybersecurity and cloud technology.
| Robo-advisor | 2.5-year annualized return |
|---|---|
| SoFi | 4.03% |
| TD Ameritrade | 3.62% |
| TIAA | 4.20% |
| Vanguard | 3.42% |
| AI ETF | Assets Under Management | Expense Ratio |
|---|---|---|
| Global X Robotics & Artificial Intelligence ETF | $2.58 billion | 0.68% |
| ROBO Global Robotics and Automation Index ETF | $1.84 billion | 0.95% |
| iShares Robotics and Artificial Intelligence ETF | $448.5 million | 0.47% |
| First Trust Nasdaq Artificial Intelligence ETF | $244.4 million | 0.18% |
Graphics technology is rocket fuel for AI
As a result, NVIDIA has opened the door to new markets the last few years, including self-driving cars and robotics, healthcare imaging, and retail operations management. Even the U.S. Postal Service has become a customer.
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Zacks Premium Research for VGT.
| Zacks Rank | Definition |
|---|---|
| 1 | Strong Buy |
| 2 | Buy |
| 3 | Hold |
| 4 | Sell |
VGT has been a wonderful investment through the Pandemic years and has left long-term investors with fine profits even after a 12% correction. But this year it has become extremely concentrated in two mega cap stocks to the point where over 40% of an investment in VGT is going into Microsoft and Apple.
Is Ftec better than VGT?
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Key characteristics.
| VGT | FTEC | |
|---|---|---|
| Daily Std Dev | 29.93% | 29.77% |
| Max Drawdown | -32.10% | -31.90% |
VGT has a dividend yield of 0.81% and paid $2.98 per share in the past year. The dividend is paid every three months and the last ex-dividend date was Jun 23, 2022.
