Meet the Magnificent Vanguard ETF With 43% of Its Portfolio Invested in Nvidia, Apple, and Microsoft

Core Insights - Vanguard Information Technology ETF (VGT) has significant exposure to three major tech companies: Nvidia, Apple, and Microsoft, which together account for over 43% of the ETF's holdings [2][6] - The ETF is passively managed and tracks the MSCI US Investable Market Information Technology 25/50 Index, which aims to enhance diversification by limiting the weight of individual stocks [3][5] - The index guidelines restrict any single issuer to a maximum of 25% of the fund's assets and limit the total weight of stocks exceeding 5% to 50% of the fund [5] Investment Characteristics - Despite the heavy weighting of the top three stocks, the ETF includes a total of 314 stocks, providing a diversified portfolio beyond just these giants [7] - The ETF's performance is closely tied to the success of Nvidia, Apple, and Microsoft, which are currently leading the market [9][10] - The expense ratio for the ETF is low at 0.09%, making it a cost-effective option for investors seeking exposure to the technology sector [8][11] Target Audience - Vanguard Information Technology ETF is suitable for investors specifically looking for technology stock exposure while benefiting from diversification [11]