1 Magnificent Tech ETF That Could Turn $200 per Month Into $704,000 or More
What are the benefits of investing in ETFs?
Investing in ETFs offers several benefits, including instant diversification, potentially lower fees compared to mutual funds, and the ability to trade throughout the day like individual stocks. ETFs can also provide exposure to various asset classes, industries, and markets, making it easier for investors to gain broad market exposure or target specific sectors. Additionally, many ETFs are passively managed, which can lead to tax efficiency and lower overall costs for investors5.
What is the expense ratio of the Vanguard Information Technology ETF?
The expense ratio of the Vanguard Information Technology ETF (VGT) is 0.10%. This means that for every $10,000 invested, you would pay $10 per year in fees. This low expense ratio can potentially save you thousands of dollars over time compared to similar funds with higher fees.
How does the Vanguard Information Technology ETF's performance compare to the Vanguard S&P 500 ETF?
The Vanguard Information Technology ETF (VGT) has significantly outperformed the Vanguard S&P 500 ETF over the past 10 years. VGT achieved an average annual return of 20.35% compared to the Vanguard S&P 500 ETF's average return of 12.66% per year in the same period. This showcases the potential for above-average returns in industry-specific ETFs like VGT.