Vanguard Information Technology ETF’s Performance and Holdings
The Vanguard Information Technology ETF (NYSEMKT: VGT) has seen substantial growth over the past decade, with a 670% increase compared to the S&P 500’s 270% gain. Much of this growth is driven by the artificial intelligence (AI) boom. However, despite holding positions in 320 tech companies, nearly 59% of its value is concentrated in just the top 10 stocks, including Nvidia (17.47%), Apple (14.90%), and Microsoft (12.19%).
Notably, the ETF excludes major players in the AI sector, such as Alphabet, Amazon, and Meta Platforms, due to their classification in different sectors. Amazon and Alphabet are critical cloud service providers, with market shares of 29% and 13%, respectively, key for the AI industry’s infrastructure. Consequently, the ETF may offer inadequate exposure to the AI megatrend.
