Is Vanguard Information Technology ETF Stock a Buy?
Technology stocks belong in most portfolios, and that makes Vanguard Information Technology ETF (NYSEMKT: VGT) a smart choice for investors who want exposure in the IT sector without having to single out potential winners or buying dozens of market leaders to make sure they spread out the risks of ownership. Vanguard Information Technology ETF has earned its keep as a smart way for folks to buy into a large basket of tech stocks with minimal maintenance on their end, and also as a tempting add-on for more seasoned stock pickers who want to enhance their individual selections with broader coverage of the entire sector.
The exchange-traded fund mirrors the MSCI US IMI Information Technology 25/50 benchmark, a collection of more than 320 bellwether stocks in the industry. Vanguard is well-regarded for its low expense ratio, and the same disciplined cost controls apply here. Vanguard Information Technology ETF weighs in with a pedestrian expense ratio of 0.1%, well below the 1.3% average of similar funds that includes actively managed mutual funds with historically higher ownership costs. It's a cost-effective way to own hundreds of important tech stocks in a single buy order.
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Source Fool.com
