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Tech Concentration in Major Index Funds and ETF Diversification Strategies

The Motley Fool +1 ·

VOO
VOO Vanguard S&P 500 ETF
$715.59 +0.61%
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  1. 1Major index funds are heavily concentrated in a few of the same technology stocks.
  2. 2Vanguard Information Technology ETF (VGT) has recorded higher returns than all other funds over the past 5 years.
  3. 3SCHD and DGRO dividend funds have recorded lower returns than the remaining ETFs over the past 5 years.

So what's the key point?

Major index funds are clustered around a few technology stocks. Vanguard Information Technology ETF (VGT) has produced higher returns than other funds over the past 5 years.

Source The Motley Fool +1 · View original ↗

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