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VGT Looks Like a Diversified Tech Bet Until You Realize Three Stocks Are 43 Percent of It
24/7 Wall St.78d agoneutral
VGT Looks Like a Diversified Tech Bet Until You Realize Three Stocks Are 43 Percent of It

The pitch on the Vanguard Information Technology ETF (NYSEARCA:VGT) is sector breadth. You pay nine basis points, you get the entire information technology sleeve of the U.S. market, roughly $125 billion in assets aggregated into one ticker. So a 50 year old tilting their 401(k) toward tech with VGT thinks they own a sector. They ... VGT Looks Like a Diversified Tech Bet Until You Realize Three Stocks Are 43 Percent of It

XLK’s quiet edge over FTEC comes from a cap limit most investors never notice
24/7 Wall St.79d agoneutral
XLK’s quiet edge over FTEC comes from a cap limit most investors never notice

If you are picking a U.S. technology ETF, the choice almost always narrows to Fidelity MSCI Information Technology Index ETF (NYSEARCA:FTEC) and The Technology Select Sector SPDR Fund (NYSEARCA:XLK). Both look like the same trade: cheap, passive, mega-cap heavy. But XLK has quietly outrun FTEC 22.06% year to date versus 19.58%, and that gap traces ... XLK’s quiet edge over FTEC comes from a cap limit most investors never notice