Overview
- A Yahoo Finance analysis recommends avoiding new purchases of the Vanguard Information Technology ETF in December due to concentrated exposure to Nvidia, Apple and Microsoft.
- VGT has risen nearly 21% year to date through November, outpacing the S&P 500 and the tech-heavy Nasdaq Composite.
- Nvidia accounts for 18.18% of VGT, Apple 14.29% and Microsoft 12.93%, totaling more than 45% as of Dec. 1.
- The ETF tracks the U.S. information technology sector across 314 holdings and uses market-cap weighting that magnifies the impact of its largest stocks.
- Invesco QQQ holds the same three companies at roughly one quarter of its portfolio, and its performance this year has largely mirrored VGT.