Core Insights - The tech sector has been the most rewarding for investors over the past decade, with nine of the world's ten most valuable companies being tech firms, each with a market cap of at least $1.4 trillion as of October 15 [1] ETF Overview - Investing in tech-focused exchange-traded funds (ETFs) is a great way to capitalize on the tech sector's growth while minimizing risks associated with individual stocks [2] - Two popular tech ETFs are the Invesco QQQ Trust ETF (NASDAQ: QQQ) and the Vanguard Information Technology ETF (NYSEMKT: VGT) [3] ETF Focus - QQQ mirrors the Nasdaq-100, which includes the largest 100 non-financial companies on the Nasdaq stock exchange, with over 60% of the fund allocated to the tech sector [4] - VGT is a pure-tech ETF containing 314 companies solely from the information technology sector, including large-cap, mid-cap, and small-cap stocks [5] Top Holdings - Both QQQ and VGT share Nvidia, Microsoft, Apple, and Broadcom as their top four holdings, with Nvidia making up 9.56% of QQQ and 17.16% of VGT [5][6] - VGT has outperformed QQQ over the past decade by over 140%, but its high concentration in a few stocks makes it riskier for long-term investment compared to QQQ [6] Performance Comparison - Over the past decade, VGT has returned 616% while QQQ has returned 468%, translating to average annual returns of 21.8% for VGT and 19% for QQQ [8] - VGT's outperformance has been particularly notable in the past year, driven by significant growth from Nvidia [9] Cost Efficiency - VGT is cheaper than QQQ, with an expense ratio of 0.09% compared to QQQ's 0.2%, which can lead to substantial savings over time for investors [10]