The Smartest Vanguard ETF to Buy With $10,000 Right Now
Yahoo Finance·2025-10-06 11:33

Core Insights - The current stock market is perceived as unstable, leading investors to consider safer options like dividend-heavy ETFs and bonds [2] - Investors who sold growth stocks during the 2022 inflation crisis missed significant wealth-building opportunities [3] - The Vanguard Information Technology Fund (VGT) is highlighted as a long-term investment despite current market volatility [4] Fund Comparison - The Vanguard IT Fund has 316 stocks and a net asset value of $128 billion, compared to the Vanguard S&P 500 Fund, which has 504 stocks and a net asset value of $1.4 trillion [5] - The IT Fund has a higher beta value of 1.25, indicating greater volatility, and a median market cap of $635 billion, which is larger than the S&P 500 Fund's median market cap of $368 billion [5][6] - The average price-to-earnings (P/E) ratio for the IT Fund is 39.0, significantly higher than the S&P 500 Fund's 27.7 [5] Performance and Risks - The IT Fund experienced a 34% loss during the inflation panic in 2022, while the S&P 500 Fund saw a 20% decline [7] - Despite its volatility, the Vanguard Information Technology Fund has outperformed other Vanguard ETFs over the past year, three years, and decade [8] - The fund is not recommended for investors needing liquidity within three years or those likely to panic-sell during significant market drops [8]