Investing in a technology ETF can be a great way to take advantage of the ups and downs of the technology sector. However, there are a few things that you should know before you make an investment decision.
If you are looking for a broadly diversified technology fund, you can try the Vanguard Information Technology ETF (VGT). VGT tracks a market-cap-weighted index of information technology companies. It includes a variety of technology stocks from across the United States.
VGT also has a very low expense ratio. It costs just 0.10% of the fund’s total assets. This is much lower than the category average. However, you should know that there are other expenses associated with investing in an ETF. These include management fees, brokerage commissions, and other expenses. You should also research these charges and expenses carefully.
The Vanguard Information Technology ETF has a very strong long-term growth outlook. It has averaged 18.4% annual returns over the last decade. It also has a low beta of 1.17. However, you should be aware that VGT’s total risk rating is above average.
The information technology sector can be affected by competition, government regulation, rapid obsolescence of products, and overall economic conditions. In addition, the fund’s portfolio is relatively top-heavy, as 54% of its assets are in the top ten positions. This can influence its track record.
The Esoterica NextG Economy ETF makes it easy for individual investors to gain exposure to the technology sector. It has 30 holdings.
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