AND S & P 500 (Snpindex: ^GSPC) In recent years, it has been extraordinarily good, it has increased by about 23% in 2024 alone. and more than 80% in the last five years.
However, as many of these figures, many shares and S&P 500 shares have been demolished lately.
There is no way to find out how the market will perform in 2025, and the types of investment with higher risk can often experience increased volatility in the short term. But there is one Vanguard ETF power plant that has surpassed the S&P 500 in recent years, and there is a reason to believe that it could continue that trend this year.
AND Vanguard Information Technology ETF (Nysemkt: VGT) The fund is solely dedicated to technological sections. Apple (NASDAQ: AAPL),, Nvidia (NASDAQ: NVDA)and Microsoft (NASDAQ: MSFT) are the three most important supplies in this ETF, making a combined 44.94% of the entire fund. The top 10 proportions are close to 60% of the entire ETF, and the remaining 306 shares round the other 40%.
ETF that is so strongly directed towards a handful of stock can be both risk and advantage. On the one hand offers much less diversification than an ETF that spreads evenly per wide range of sections from multiple industries – increasing risk. This is said, if these sections continue their winning streak, you could see serious returns.
Many of the best stakes of ETF are strongly focused on progress in artificial intelligence (AI). Nvidia, for example, is a key supplier of graphic units for processing (GPU) used by many AI developers.
Since AI explodes in recent years, stocks with a lot of technology focus have grown with them. ETF Vanguard Information Technology has earned a total refund of nearly 74% in the last two years, compared to total S&P 500 of 48% at that time.
But they are not just recent achievements in technology that further launched this fund. Vanguard ETF Information Technology has a long history of over-average yield earnings, with an average return of more than 13% annually since its founding in 2004-the historic market average of about 10% per year.
Although there are no guarantees that large technological shares will continue to progress in the coming years, this ETF has had a long history of market surveillance for a decade.
At the end of last month, Nvidia suffered a historic decline after the appearance of Deepsek, a Chinese Ai chatbot that could be a competitive threat to other companies that focused strongly on AI technology. A sharp fall has made history as the biggest one -day sale for an individual section in the history of the US market.
