“Issuers are no longer just throwing spaghetti onto the wall to see what sticks, but lasagna & pizza, too.” –@ETFhearsay
ETF quote of year so far.
New launches becoming wilder than ever.
Good thing is ETFs = meritocracy.
Investors vote w/ their $$$ to determine what sticks. pic.twitter.com/FNjzDpdEjm
— Nate Geraci (@NateGeraci) March 18, 2025
The Vanguard Information Technology ETF (VGT) presents an attractive opportunity for investors looking to capitalize on the tech sector’s strengths and future potential, particularly in the realm of artificial intelligence (AI). With the S&P 500 currently experiencing a sell-off, now might be an ideal time to consider investing in this ETF for those with a spare $550. The ETF is composed of 316 stocks spanning 12 different subsegments of the information technology sector, with the semiconductor segment garnering the highest weighting at 27%.
The 3x Europe ETF (EURL) starting to see some nibbles. This thing has lived in oblivion for ages (understandably so). That said its tiny vs the flowathon from degens buying the US dip via $TQQQ et al but it’s something, watch this space.. ht @Todd_Sohn pic.twitter.com/JnR4MJCBBk
— Eric Balchunas (@EricBalchunas) March 18, 2025
It includes some of the most influential tech companies in the world, such as Microsoft, Broadcom, Nvidia, Apple, and Salesforce. These companies are reaping the rewards of increased AI adoption and integration into their products and services.
A tech-sector entry point
Nice look at which ETF issuers were hit the hardest asset-wise by market drop this year. In short, anyone who specializes in hot sauce got it the worst (eg ARK, ProShares, Direxion) while the buffer/cash crowd held up best via @psarofagis pic.twitter.com/izVNeklvWm
— Eric Balchunas (@EricBalchunas) March 18, 2025
Microsoft has integrated AI into its popular software applications and Azure platform, while Apple has enhanced its devices’ capabilities with Apple Intelligence. Salesforce has embedded AI into its CRM platform through Agentforce, streamlining workflows and customer relationship management. The Vanguard Information Technology ETF boasts an impressive track record, delivering a 29.2% return in 2024 and achieving a compound annual return of 13.3% since its inception in 2004.
The ETF is well-positioned to benefit from ongoing advancements in AI, with major tech companies expected to invest heavily in AI data center infrastructure and chips. Given the current market downturn, the ETF is currently down 15% from its recent peak, providing an attractive entry point for investors looking to add high-quality tech stocks to their portfolio at a discounted price. Investing in the Vanguard Information Technology ETF could be a prudent move for those seeking to capitalize on the tech sector’s strengths and future potential, particularly in the realm of AI.
Photo by; Jeff Sheldon on Unsplash