4/17/2023 0 Comments Blue spheres schg![]() That means a change in fortunes for either tech giant could significantly weigh on the entire fund. Thus, while VGT hold 330 stocks, nearly 40% of AUM are invested in Apple and Microsoft – the sector's two largest stocks by a country mile. VGT is market cap-weighted, which means the bigger the stock in the fund's investing universe, the more assets it dedicates to it. Just note that this wide net isn't as diversified as it seems. Still, with VGT you get access to industries such as systems software, application software, data processing, semiconductors, tech hardware, communications equipment, IT consulting and more. This included the creation of the communications sector, which essentially “stole” various stocks from tech, including the likes of FB and GOOGL. That's because in 2018, changes were made to the Global Industry Classification Standard (GICS) that determines which stocks belong in which sectors and industries. But it's not social media giant Facebook ( FB (opens in new tab)), nor is it Alphabet ( GOOGL (opens in new tab)), the parent of search leader Google. But an important thing to note is that "technology" isn't always what you think it is.įor instance, the tech sector is software companies such as Microsoft ( MSFT (opens in new tab)), device makers like Apple ( AAPL (opens in new tab)) and chip manufacturers such as Intel ( INTC (opens in new tab)). The Vanguard Information Technology ETF holds roughly 330 stocks within the technology sector, with a heavy emphasis on large-cap stocks, which make up about 85% of the fund. In mid-May, VGT surpassed the Technology Select Sector SPDR Fund ( XLK (opens in new tab)) by assets under management, and it hasn't looked back since, currently boasting roughly $37 billion versus XLK's $34 billion. ![]() The Vanguard Information Technology ETF ( VGT (opens in new tab), $316.61) has long been considered among the best technology ETFs for broad access, as well as one of the cheapest ways to access the space. ![]() We'll start with a few ways investors can get broad access to the technology sector. ![]()
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