The article recommends Vanguard's Information Technology ETF (VGT) for passive investors looking to capitalize on technology's growth, particularly during the AI boom. VGT has outperformed the S&P 500 recently, attracting investors seeking exposure to crucial sectors like e-commerce and AI. While it provides extensive tech coverage, concerns about high valuations and a possible AI bubble suggest caution. The author argues that VGT is a preferable option over the Nasdaq 100 due to its encompassing nature, encouraging a balanced approach to include tech alongside broader market investments.
With VGT, most bases within the tech scene are covered, from e-commerce and the cloud to emerging themes like AI and the metaverse.
While more tech exposure can beef up your total returns, extended valuations and 'AI bubble' talk could make for tougher sledding on the way down.
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