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Key Facts on Vanguard Information Technology ETF
The Vanguard Information Technology ETF (NYSEMKT: VGT) has seen a year-to-date return of 23%, outpacing the S&P 500 which returned 15.6% as of October 29, 2023. This ETF, which holds 314 tech stocks, charges an expense ratio of 0.09% and automatically rebalances to capture gains from leading companies, including Nvidia, Microsoft, and Palantir Technologies.
Nvidia plays a critical role in the ETF’s performance, representing a significant percentage of holdings as the semiconductor market pivots to AI applications. The fund includes major players like Apple and AMD, ensuring exposure to both established and emerging firms in AI and tech. This concentration comes amid warnings about tech sector risks, echoing concerns similar to those seen during the dot-com bubble.
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