The tech trade has struggled in recent weeks. Neuberger Berman's Raheel Siddiqui says it's an opportunity to buy the dip and position for a stronger 2026. You can sign up for Business Insider's daily markets newsletter here. Worried that the tech stock sell-off that's rattled markets in recent weeks is the beginning of the end for the AI boom? Don't be, says Raheel Siddiqui, senior investment strategist at Neuberger Berman, which manages $460 billion. Siddiqui told Business Insider on Monday that ...

Key Points These Vanguard ETFs are set to outperform if growth stocks continue to lead the market higher. All three ETFs are heavily weighted to megacap tech stocks benefiting from AI. Investors should still look to employ a dollar-cost averaging strategy. 10 stocks we like better than Vanguard World Fund - Vanguard Mega Cap Growth ETF › Growth stocks have helped lead the market higher for much of the past two decades, and with artificial intelligence (AI) still looking like it is in the early inn ...

Core Viewpoint - The Vanguard Mega Cap Growth ETF is positioned as a strong investment opportunity in leading AI stocks, especially during the current market pullback [1]. Group 1: ETF Overview - The Vanguard Mega Cap Growth ETF is concentrated with only 66 stocks, with nearly 70% of its portfolio in technology stocks, including top AI names [2][3]. - The ETF tracks the CRSP US Mega Cap Growth Index, which consists solely of megacap companies that represent 70% of the total market capitalization of U.S. stocks [4]. - The smallest stock in the ETF has a market cap of just under $70 billion, indicating a focus on large, established companies [4]. Group 2: Performance Metrics - Over the past 10 years, the ETF has generated an average annual return of 18.3%, with a yearly return of 19.3% over the past five years and 33.2% over the past three years [6]. - The ETF's top holdings are primarily in stocks leading the AI sector, which are expected to continue strong growth despite concerns about an AI bubble [8][9]. Group 3: Investment Strategy - The current market pullback presents a favorable entry point for investors, allowing them to purchase shares of the ETF more than 5% off its highs [9]. - A dollar-cost averaging strategy is recommended for long-term investment in the ETF to build wealth and mitigate market timing risks [10].

Core Insights - Vanguard Information Technology ETF (VGT) is a broad technology ETF with 310 stocks, primarily focused on technology, and includes small allocations to communication services and financials [1] - VGT has a long track record of 21.8 years, appealing to buy-and-hold investors due to its structural stability and lack of leverage resets [1][5] - iShares US Technology ETF (IYW) has delivered slightly stronger five-year growth but with a deeper maximum drawdown, indicating more volatility during market downturns [2][4] Cost and Performance Comparison - VGT is more affordable with a 0.09% expense ratio and a 0.4% yield compared to IYW's 0.38% cost and 0.1% yield [2][5] - VGT holds over twice as many stocks as IYW, which has a more concentrated portfolio with nearly 90% in technology [5][6] - IYW has a higher 1-year return but VGT's milder historical drawdown may appeal to risk-averse investors [5][6] Investment Philosophy - VGT is designed for breadth, providing a diversified exposure across more than 300 holdings, making it suitable for long-term investors seeking stability [9][11] - IYW focuses on a narrower selection of large-cap tech stocks, capturing more upside in strong market years but with deeper drawdowns [10][11] - The distinction between the two ETFs lies in their ability to maintain a consistent tech allocation across market cycles, with VGT having a stronger claim to this role [12]

Core Insights - The Vanguard Information Technology ETF provides a simple way to invest in major growth stocks, particularly Nvidia, Microsoft, and Apple, which have significant market capitalizations [1][2] Investment Overview - Nvidia, Microsoft, and Apple constitute 20.7% of the S&P 500 and 43.6% of the Vanguard Information Technology ETF [2] - The ETF allows for dollar-based investing, enabling investors to purchase fractional shares rather than full shares, making it accessible for financial planning [3] Market Concentration - The U.S. stock market has become increasingly concentrated, with a few companies driving most gains; Nvidia, Microsoft, Apple, and others account for 40% of the S&P 500 [5][6] - The Vanguard Tech ETF is heavily concentrated, with its top 10 holdings making up 57.6% of the fund, despite holding over 300 stocks [7] Performance Metrics - Over the last decade, the Vanguard Information Technology ETF has achieved a total return of 681%, outperforming the Nasdaq Composite and S&P 500 [8] - In the last three years, the ETF has increased by 165%, again surpassing both the Nasdaq Composite and S&P 500 [8] Sector Focus - The ETF serves as a vehicle to invest in artificial intelligence through companies like Nvidia, Broadcom, and AMD, as well as software and cloud infrastructure firms [10] - Notably, the ETF does not include Amazon, Tesla, Alphabet, Meta Platforms, or Netflix, which may lead investors to consider other Vanguard funds for broader exposure [11] Valuation Considerations - The Vanguard Information Technology ETF has a low expense ratio of 0.09%, making it an attractive option for exposure to top tech stocks [12] - Nvidia's earnings have surged to over $86 billion, highlighting the importance of continued exceptional earnings growth from leading companies in the tech sector [13] - The ETF trades at a price-to-earnings ratio of just over 40, indicating a premium compared to the Vanguard S&P 500 ETF, which has a P/E under 29 [14] Long-term Investment Strategy - The Vanguard Tech ETF is designed for long-term investors who are willing to accept potential volatility due to its concentration in the tech sector [15]

Core Insights - The article presents several growth stock ideas for consideration in the upcoming year, highlighting their potential for continued growth and investment opportunities. Group 1: Nvidia - Nvidia has averaged annual gains of 145% over the past three years and is not considered overvalued due to its strong growth [2] - In the second quarter, Nvidia's revenue increased by 56% year over year, driven by high demand for data centers supporting AI technologies [3] - Nvidia recently became the first stock to achieve a $5 trillion valuation [3] Group 2: Netflix - Netflix has averaged annual gains of 26% over the past decade and has announced a 10-for-1 stock split [5] - In the third quarter, Netflix's revenue rose by 17% year over year, and its share of TV time in the U.S. has been increasing [5] - Netflix's shares are considered somewhat overvalued, with a price-to-sales ratio of 10.9 compared to a five-year average of 6.6, and a forward-looking P/E ratio of 34 [5] Group 3: Vanguard Information Technology ETF - The Vanguard Information Technology ETF has averaged annual gains of 20% over the past 15 years and includes Nvidia as its top holding [7] - This ETF provides exposure to over 300 growth stocks, making it a convenient investment option [7]

Core Insights - Investing in a tech-focused ETF, such as the Vanguard Information Technology ETF, can lead to significant wealth accumulation over time due to the explosive earnings potential of tech stocks [1][2] - The Vanguard Information Technology ETF has shown an average annual return of 23.45% over the past decade, turning an initial investment of $1,000 into approximately $7,181 [2][3] - Consistent monthly contributions can greatly enhance earning potential, with an example showing that investing $50 per month could yield around $18,000 after 10 years [3][4] Investment Performance - The Vanguard Information Technology ETF includes 314 stocks across various technology sectors, providing substantial diversification [2] - Historical performance indicates that the ETF has consistently outperformed the market over time since its launch in 2004 [2] - The potential total portfolio value can grow significantly with time and consistent contributions, reaching $56,000 after 15 years and $161,000 after 20 years [4] Market Considerations - While tech stocks and ETFs can be lucrative, they also carry higher risks compared to more established industries, often experiencing severe corrections during market downturns [5] - The Vanguard Information Technology ETF has a history of recovering from recessions and bear markets, although short-term volatility can be challenging for risk-averse investors [6][9] - Long-term investment strategies are recommended, with a focus on consistent contributions and a minimum investment horizon of five to ten years to mitigate risks associated with market timing [8]

Core Insights - The Vanguard Information Technology ETF (VGT) and the Technology Select Sector SPDR Fund (XLK) are compared for their performance, diversification, cost, and risk metrics [1] Cost & Size - XLK has a lower expense ratio of 0.08% compared to VGT's 0.09% [2][3] - As of October 27, 2025, XLK's one-year return is 29.9%, while VGT's is 30.6% [2] - XLK offers a dividend yield of 0.5%, slightly higher than VGT's 0.4% [3] - XLK has an AUM of $96.4 billion, while VGT has $128.3 billion [2] Performance & Risk Comparison - Over five years, XLK has a max drawdown of 33.56%, while VGT's is 35.08% [4] - A $1,000 investment in XLK would grow to $2,681 over five years, compared to $2,621 for VGT [4] Holdings & Diversification - VGT holds approximately 310 stocks, primarily in technology, with a small 1% in communication services [5] - XLK is more concentrated with only 68 holdings, focusing exclusively on technology [6] - Both funds have significant investments in NVIDIA, Apple, and Microsoft, but with different weightings [6] Historical Performance - Over the past five years, XLK has delivered a total return of 181.8%, while VGT has produced a total return of 174.3% [7] Index Tracking - VGT tracks the MSCI U.S. Investable Market Information Technology 25/50 index, which includes large, medium, and small U.S. tech companies [8] - XLK tracks technology stocks limited to those in the S&P 500 index [8]

Core Insights - Investing in the stock market does not require significant wealth; a $1,000 investment can potentially yield substantial returns [1] - Exchange-traded funds (ETFs) are effective for building long-term wealth with minimal effort, as they consist of a collection of stocks [2] ETF Overview - The Vanguard Information Technology ETF (NYSEMKT: VGT) is highlighted as a strong option for maximizing earnings with minimal effort [3] - This ETF includes 314 technology stocks, providing diversification and risk mitigation [5] Holdings and Risk Management - The top three holdings in the ETF are Nvidia, Microsoft, and Apple, which together account for nearly 44% of the fund [6] - A mix of industry leaders and smaller companies within the ETF can help balance risk and reward, with smaller stocks offering explosive earnings potential [7] Market Considerations - The tech sector is known for significant volatility, which can lead to severe fluctuations in the ETF's performance [8] - A long-term investment horizon is recommended to weather market downturns and avoid losses [9]

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]