VGT ETF

In 2024, the technology industry did very well, especially companies like Apple, Microsoft, and Nvidia, but there are concerns about possible instability in the future. VGT relies heavily on its top three stocks, which can be risky even though they have performed well this year. While VGT is more balanced than similar funds, it is currently overvalued, and a price adjustment could make it a more secure investment.

If you have $1,000 that you want to invest for long-term growth, you're in the right place. Whether you have $100,000 or just $100, the advice here applies to everyone.

Artificial intelligence (AI) is set to change the world economy significantly. Predictions for its economic effects by 2030 vary widely, with some expecting growth in gross domestic product (GDP) of tens of trillions, while others suggest a more modest increase of only half a percent.

The S&P 500 (^GSPC 1.09%) has increased by 24% this year, which is more than twice its average yearly return since it started in 1957. However, the index is currently experiencing a sell-off, having dropped about 3.4% from its latest peak.

On December 20, 2024, Vanda Pharmaceuticals Inc. announced that the U.S. Food and Drug Administration (FDA) has given Orphan Drug Designation to VGT-1849A, a JAK2 inhibitor designed to treat polycythemia vera (PV), a rare blood cancer affecting about 1 in 2000 Americans. PV is a chronic condition that leads to excessive production of red blood cells and increased inflammatory substances due to a mutation in the JAK2 gene found in over 95% of patients. By inhibiting JAK2, the treatment aims to reduce the production of red blood cells, neutrophils, platelets, and lymphocytes.

In the last ten years, the information technology sector has been the most successful category in the stock market. As of December 9, the tech sector of the S&P 500 has increased by about 576%, while the consumer discretionary sector follows with a growth of 237%.

Choosing the right investment can greatly boost your portfolio, and exchange-traded funds (ETFs) offer an easy way to build wealth with minimal effort.

If you want to gain wide exposure to the technology sector of the stock market, you might want to look at the Vanguard Information Technology ETF (VGT). This is a passively managed exchange-traded fund that started on January 26, 2004.

VGT has done better than other large-cap ETFs like SPY and QQQ, which is why it is highly recommended for long-term investment, especially because of its focus on technology. Technology is a major factor for growth, and ETFs like VGT help investors find leading companies like AAPL, MSFT, and NVDA. Although there are risks due to its concentrated holdings, VGT has proven its performance and is considered a reliable choice for long-term growth.