The Vanguard Information Technology Index Fund has surged 22% year-to-date, more than doubling the S&P 500's 8% gain. The ETF, which tracks 323 tech stocks, is heavily concentrated in its top five holdings—Nvidia at 16.8%, Apple at 15.3%, Microsoft at 9.9%, Broadcom at 4.5%, and Micron Technology at 4.2%—which together account for over half of its assets. It has outperformed the S&P 500 over every trailing period in the past decade, driven by secular growth trends like AI and cloud computing. Goldman Sachs estimates AI-related capital spending will reach $765 billion this year and climb to $1.6 trillion annually by 2031, with the bulk going to compute, benefiting key VGT holdings. The fund's focus on these megatrends positions it for continued outperformance, according to the article.
Apple Inc.
Broadcom Inc
Microsoft Corporation
NVIDIA Corporation
Goldman Sachs Group Inc
Micron Technology Inc