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The stock market increased its volatility in 2025, in part because of President Donald Trump’s pricing actions. But the market was resilient and was fell from losses earlier in the year, both S&P 500 and the Nasdaq Composite now slightly in the year.
A sector that has played an important role in the rebound is the technological industry. The sector is in the middle of a pivot of artificial intelligence (AI) to take advantage of the massive opportunity which should contribute up to 15.7 billions of dollars per year to the world economy by 2030.
Until now, the success of AI actions has been a bit uneven, and choosing winners in the AI race is difficult. So how are investors with limited capital available to buy shares with – say $ 500 – diversify their technological bets to increase their oversized return chances on this $ 500 investment? One of the best ways is to invest in a Fund negotiated in exchange for technology (ETF) which broadcasts your investment in many companies.
Here is why the Vanguard Information Technology FNB (NYSEMKT: VGT) This could be an excellent option for this initial purchase of $ 500.
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The Vanguard Information Technology ETF follows MSCI US Investable Market Information Technology 25/50 Index, which includes more than 300 technological companies. It’s great for technological investors because you never know when a little start-up will start to disrupt a larger and more established player.
With the Vanguard Information Technology ETF, you don’t have to guess if David or Goliath will win. Your investment is spread over hundreds of businesses, from small capitalization to large capitalization. The fund is weighted by the market market, which means that larger technological companies represent a larger percentage of the fund.
In short, you get an exhibition to a myriad of technological companies of different sizes that build the latest hardware and software used by millions of customers and businesses. Although it is not a specific AI fund, with so many companies in the fund, you will be invested in the main strikers of artificial intelligence, including Nvidia,, Microsoft,, PALANTOUT TechnologiesAnd many others.
As always, investors must remember that past performance does not guarantee future gains. This also applies to the Vanguard Information Technology ETF. But it is worth examining its past performance to assess whether it was a good investment.
The fund was created in 2004, and since then it was by far a better investment than the S&P 500. Over the past decade, the technological fund has returned 543% (with reinvested dividends) compared to gains of 245% of the larger market.
It is not too surprising, since technology stocks often work better than many other sectors. For example, 690% gains from the NVIDIA leader in the past three years have had a significant impact on fund’s performance.
Although no one knows what the future will bring for the fund, we know that AI is still in its infancy and could be worth billions of dollars in the years to come. This means that many Vanguard Information Technology ETF companies could be ready for more growth in the years to come.
All funds charge fees and average spending ratio For indexed FNBs is approximately 0.41%. But Vanguard has a great reputation for invoicing very low costs, and information technology Vanguard is not different. The fund’s expenditure ratio is only 0.09%, which means that you will only pay $ 9 in annual costs for each $ 10,000 invested.
If you have $ 500 to invest now, it should be mentioned that a fund’s action is at $ 625 to June 13. But that should not prevent most investors from buying the fund because many brokerage houses offer split stocks, which allow you to buy parts on the one hand.
Technological actions constantly exceeding the market and Vanguard offering an inexpensive and diverse technological fund option, the Vanguard Information Technology ETF should be a purchase unrelated to many investors.
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Chris Neiger Has no position in the actions mentioned. The Motley Fool has positions and recommends Microsoft, Nvidia and Palantir technologies. The Motley Fool recommends the following options: Long January 2026 Calls $ 395 on Microsoft and Court January 2026 405 $ calls Microsoft. The Word’s madman has a Disclosure policy.
