Vanguard’s Information Technology ETF (VGT) and Invesco’s QQQ ETF are the two best ETFs for technology, giving investors an excellent opportunity to slice the tech portion of the stock market.
An ETF is an exchange-traded fund. It is like a mutual fund, but it is traded like a stock. Mutual funds are traded at the end of the day, and ETFs are traded like a stock.
VGT holds 351 different stocks, and 60% of those are found in the top 10% of holdings. The problem with VGT is that it has too much exposure to two top tech companies, Apple (AAPL) and Microsoft (MSFT).
QQQ has been rated the number one best performing large-cap growth fund on the market based on the returns of the last 15 years. It has had a performance of 18.03% over the previous ten years.