No matter how attractive a tech ETF appears, it's vital to understand its expense ratio as well.
You don’t have to be a tech whiz, but it's important to review the entire basket of stocks you’re investing in.
The beauty of ETFs is that they mirror the highest-performing stocks in the sector.
The digital revolution has shaped nearly every area of our lives, from how we watch movies to how we manufacture goods and communicate. If you're seeking exposure to this metamorphic revolution, tech-focused exchange-traded funds (ETFs) may be worth adding to your portfolio. Tech ETFs offer a convenient way to own stock in multiple innovative sectors without putting all your eggs in one basket.
Here are two leading tech ETFs and why they're worth a much closer look.
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While owning stock in these industry giants is nice, VGT also gets you in on the ground floor with the latest emerging titans -- companies that may not be household names just yet, but are positioned to take off.
True to Vanguard's philosophy, VGT's fees are exceptionally low at 0.09%. VGT may be ideal for you if:
While there's a place for cheap tech stocks in a balanced portfolio, there's something to be said for bundling the best and brightest in a single ETF. ROBO focuses on stocks that are expected to drive the automation of the future.
ROBO takes a global approach, investing in innovative companies, regardless of where they originate. This allows ROBO to capture leaders from North America, Europe, and Japan. With 78 current holdings, the common denominator is robotics and automation. Within those holdings, you'll find everything from AI software providers to healthcare robotics and surgical systems.
ROBO is laser-focused on the companies pioneering next-generation technology, and it may be right for you if:
The automation revolution may be in its early stages, but it offers vast potential as these technologies become more efficient and affordable.
Technology is here to stay. It all comes down to determining where your investment dollars have the greatest opportunity to grow.
Before you buy stock in Vanguard Information Technology ETF, consider this:
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Dana George has positions in Apple. The Motley Fool has positions in and recommends Apple, Broadcom, Microsoft, and Nvidia. The Motley Fool has a disclosure policy.