2024-05-29 04:51:15 ET
Summary
- Vanguard Information Technology ETF offers low fees, and a dividend yield, gaining over 35% since September last year.
- VGT's outperformance is due to the innovation factor, with companies like Nvidia and Microsoft driving growth in AI.
- The AI base of VGT has broadened, with companies like Oracle and Advanced Micro Devices entering the AI semiconductor space, without forgetting Cisco.
- Artificial intelligence was the focus area of more S&P 500 companies during the Q1-2024 earning season due to the productivity gains it delivers.
- The acceleration in earnings growth for IT stocks has not yet been fully priced into VGT's share price.
For investors who prefer to be passively invested in big tech, the Vanguard Information Technology ETF ( VGT ) charges fees of only 0.1% and offers a dividend yield of 0.66%. Since my last coverage in the article entitled: "VGT ETF: Buy Based On Productivity Gains And Generative AI" in September last year, it has gained more than 35% and is now trading at $545 while during this time the S&P 500 has appreciated by only 24 %....
Read the full article on Seeking Alpha
For further details see:
VGT: Continued Strength As The AI Base Broadens