Own VGT? Here’s How Much of It Is Really Nvidia, Apple, Microsoft, and Broadcom.
When investing in tech exchange-traded funds (ETFs), sometimes it’s a good idea to peek under the hood and see what you’re really buying within each fund’s portfolio. Sometimes there is a lot of overlap from one tech ETF to another. This can make it easier to choose the best tech ETF for your goals, based on which fund holds which mix of stocks and sectors.
The Vanguard Information Technology ETF (NYSEMKT: VGT) is a popular tech fund that holds 318 stocks. It represents a wide range of companies in the electronics and computer industries, including semiconductors, software, hardware, and tech-related services and components. And VGT is a passive index fund, so it doesn’t pick stocks — it just tracks the performance of its tech sector benchmark.
When you buy VGT, you’re going to get a strong concentration of major tech names that are also top holdings in the S&P 500 index (SNPINDEX: ^GSPC) and Nasdaq-100 index. But how much of VGT is just a few major tech stocks that you can buy in other ETFs?
Source: www.fool.com — article syndicated from the publisher’s feed; all rights remain with the original publisher.