1 No-Brainer Technology Vanguard ETF to Buy Right Now for Less Than $1,000

Core Viewpoint - The Vanguard Information Technology ETF (VGT) has demonstrated strong performance, compounding at an annualized rate of 21.3% over the past decade, making it a compelling investment option in the technology sector [1][6]. Group 1: ETF Characteristics - ETFs provide instant diversification and reduce risk compared to individual stock picking, particularly beneficial in the volatile technology sector [2]. - The Vanguard Information Technology ETF is a pure-play technology ETF, holding stakes in 319 technology stocks, unlike other ETFs that may include multiple sectors [5]. - The ETF has a low expense ratio of 0.09%, which is significantly lower than the Invesco QQQ's 0.20%, making it a cost-effective choice for investors [10]. Group 2: Performance Metrics - The Vanguard Information Technology ETF has generated an annualized return of 13.7% since its inception in 2004, with a remarkable 21.3% return over the last decade [6]. - The ETF is positioned to benefit from the anticipated economic value generated by artificial intelligence (AI) in the coming years [7]. Group 3: Holdings Breakdown - The ETF's top six submarkets include Semiconductors (30.4%), Systems Software (21.8%), and Application Software (15.1%), indicating a strong focus on foundational technology sectors [8]. - The top ten holdings of the ETF are heavily weighted towards major technology companies, with Nvidia (16.74%), Microsoft (14.89%), and Apple (13.03%) being the largest [8]. Group 4: Investment Strategy - The Vanguard Information Technology ETF is recommended as a long-term buy-and-hold investment due to its strong past performance, low fees, and concentrated yet diversified exposure to the technology sector [11][12].