VGT Stock Recent News

Big tech has dominated the markets, but with tariffs and market uncertainty, what should investors do with the sector now? Ivana Delevska, Spear Invest Founder and CIO, joins Wealth to give some tips on investing in the tech space right now.

Since mid-February, the S&P 500 (^GSPC 2.03%) has fallen by over 14%, as of this writing. The Nasdaq Composite (^IXIC 2.74%) and the Dow Jones Industrial Average (^DJI 1.23%) have dropped by around 19% and 12%, respectively, in that time.

Vanguard Information Technology Index Fund (VGT) is down 12% in the last month but has gained 3.5% over the last year. VGT is heavily weighted in Apple, Nvidia, and Microsoft, which account for nearly 50% of its holdings. Despite a 21% correction, VGT's valuation remains high with a P/E ratio of 33.2, but earnings growth is strong at 28.3%.

U.S. stock markets are in turmoil. Since the start of the year, the benchmark S&P 500 has plunged by over 11%, and the tech-laden Nasdaq-100 has dropped by over 16%, as of this writing.

The S&P 500 (SNPINDEX: ^GSPC) is made up of 500 companies from 11 different economic sectors. The information technology sector is the largest by a wide margin, representing 29.9% of the entire value of the index.

We highlight ETFs from the sectors expected to post Q1 earnings growth that could make great plays amid tariff woes.

The Vanguard Information Technology ETF (VGT) was launched on 01/26/2004, and is a passively managed exchange traded fund designed to offer broad exposure to the Technology - Broad segment of the equity market.

VGT has outperformed the SP500 with an average return of 15.52% since 2004, despite recent volatility and a 24.12% loss this year. The ETF is heavily concentrated in tech giants like AAPL, NVDA, and MSFT, which make up 45.98% of its holdings, increasing sector-specific risk. VGT offers a higher CAGR (17.43%) and better diversification with 314 companies compared to its substitutes, making it attractive for long-term growth and regular income.

Many investors are scanning the investment horizon right now, trying to decipher what's coming down the road. President Donald Trump's tariffs are causing panic among many and have spurred economists to revise their recession predictions upward.

Nvidia (NASDAQ: NVDA) took the market by storm in 2023 and 2024 -- increasing by several-fold in just two years to become the third most valuable company in the world behind only Apple (NASDAQ: AAPL) and Microsoft (NASDAQ: MSFT). But Nvidia and several other megacap growth stocks are underperforming the S&P 500 (^GSPC 0.38%) and Nasdaq Composite (^IXIC 0.87%) in 2025 as fears of an economic slowdown and tariffs rock markets.