1 Tech ETF to Load Up On, and 1 to Avoid Right Now

Core Viewpoint - The tech sector has experienced significant volatility but is expected to yield long-term gains, with a recommendation to consider tech-focused ETFs for investment [2][4]. Group 1: ETF Recommendations - The Invesco QQQ Trust ETF (QQQ) is recommended for investment as it mirrors the Nasdaq-100, which consists of the largest 100 non-financial companies, with over 60% of its holdings in the tech sector [4][10]. - QQQ has shown strong performance since its inception in March 1999, with a price increase of nearly 1,000%, significantly outperforming the S&P 500's approximately 390% increase [5]. - Over the past decade, QQQ has averaged annual returns of 17.5%, compared to the S&P 500's 11.6% [5][7]. Group 2: ETF to Avoid - The Vanguard Information Technology ETF (VGT) is advised against due to its high concentration in three stocks: Nvidia (16.74%), Microsoft (14.89%), and Apple (13.03%), which together account for over 44% of the ETF [9][12]. - VGT is broader in scope, including U.S. companies of all sizes in the tech sector, but its heavy reliance on a few stocks raises diversification concerns [8][9]. - QQQ includes major tech companies like Amazon, Meta Platforms, and Alphabet, which are not present in VGT, enhancing its appeal for tech exposure [10]. Group 3: Expense Ratios - VGT has a lower expense ratio of 0.09% compared to QQQ's 0.20%, which could impact returns if both ETFs perform similarly [12].