- VGT has been a wonderful investment through the Pandemic years and has left long-term investors with fine profits even after a 12% correction.
- But this year it has become extremely concentrated in two mega cap stocks to the point where over 40% of an investment in VGT is going into Microsoft and Apple.
- GICS is about to announce if it will move the stocks currently in the Tech Sector's Data Processing and Outsourced Services sub-industry to other sectors.
- This is part of GICS's decade-long pattern of moving popular tech stocks out of the Tech sector into sleepier sectors. This harms VGT.
- It is unlikely the top stocks that will remain in VGT can live up to their lofty valuations. Quant Ratings and Fastgraphs both tell me its time to take profits.
For further details see:
Is VGT A Good Long-Term Buy For ETF Investors? No. Not Anymore.