VGT Stock Recent News

With March 2025 proving to be a turbulent chapter for the U.S. stock market, the technology sector is at the heart of the storm. What began as a year of cautious optimism has unraveled into a wave of selling pressure driven by tariff uncertainties, fading AI euphoria, and doubts about lofty valuations.

The technology-oriented Nasdaq 100 index is back into correction territory, down 10.5% after hitting an all-time high last month.

After a bit of a rebound, the Nasdaq Composite index is no longer officially in correction territory, for now at least, down by just 9% from the recent highs as of this writing. However, when it comes to finding excellent ETFs, there are still some excellent bargains for long-term investors.

With the stock market stumbling in the past month or so, some investors have understandably been looking for the best places to put their money amid the uncertainty. Trade war worries and concerns about an economic slowdown are also fueling investor anxiety.

With markets in flux, finding exchange traded funds (ETFs) that have the potential to outperform the broader indices is something most investors are after.

If you're looking to make a million dollars or more in the stock market, I have some news for you: It's very possible! One good way to do it is via exchange-traded funds (ETFs) -- funds that trade like stocks.

After dipping into correction territory late last week, the S&P 500 (^GSPC 1.08%) is currently down by 8.73% since mid-February, as of this writing. Recession fears are still surging, however, with close to 60% of U.S. investors feeling pessimistic about the market's six-month future, according to a mid-March survey from the American Association of Individual Investors.

VGT ETF is down 11.8% YTD but boasts a strong 19.8% average annual return over the past decade, outperforming the S&P500 by ~7% annually. VGT is well-diversified across critical tech sub-sectors like semiconductors and software, crucial for the AI era, with top holdings including Apple, Nvidia, and Microsoft. The fund has a low expense ratio (0.09%) and high liquidity ($100 billion AUM), but relatively high valuation metrics indicate it is a higher risk/reward propostion for investors.

The S&P 500 (^GSPC -1.39%) is made up of 500 companies from 11 different sectors of the U.S. economy, but the information technology sector is the largest in the index by far, representing 30.1% of its entire value.

For many, or most, of us, it's smart to aim for average returns, because they're rather powerful and they can be simple to achieve -- by socking money away in one or more low-fee, broad-market index funds such as one that tracks the S&P 500.