Looks like you're using new Reddit on an old browser. There is no free lunch in owning only a segment of the market, nor is there a free lunch in trading on such obvious public information as "AI revolution is coming." Both QQQ and VGT are ETFs. June 20, 2017 10:25 am ET Order Reprints Print Article Text size. Both QQQ and VGT are ETFs. It's instructive to look at the components of the DJIA through history. 0 Comment. Bogleheads are passive investors and diehard fans of Jack Bogle's simple but powerful message to diversify and let compounding grow your wealth. I may take advantage of rally today to sell DFA to be honest. Yes. On average, QQQ has had a higher return over the last 10 years. However, don’t be fooled. You're just performance-chasing. Many investors who want technology exposure choose XLK, VGT or even QQQ as their primary ETF, but two smaller technology ETFs may represent better options. Which technology ETFs are doing best depends on the time frame that is being analyzed. 5 yr return 119% over QQQ's 91%. Have a question about your personal investments? ... At 22, should I purely stick to VOO, or allocate 30% of my portfolio to riskier ETF's (e.g. QQQ is good but its not pure tech. Intuitively, this makes sense, because new leading businesses replace old ones as the economy and society evolve. Added in consumer cyclicals and other tech focused individual stocks not representated well by tech ETFs. QQQ has a higher expense ratio than VGT (0.2% vs 0.1%). By. What you are doing is unjustified overweight to whoever happens to be in certain sectors/indexes. I'd say own them all even though there's overlap. Because this might happen: https://www.reddit.com/r/Bogleheads/comments/fz6kg2/vfiax_vs_voo_questions/fn44nhn/?utm_source=share&utm_medium=ios_app&utm_name=iossmf. Blockchain technology allows for a recorded incorruptible decentralized digital ledger of all kinds of transactions to be distributed on a network. Diversify, buy, hold, and stay the course. Regular tech etfs like VGT, XLK, FTEC doesnt have amazon, fb, google, so i searched for pure tech that has Faamg stocks and I found IGM (ishares Expanded tech sector) it has 1.77B assets and pretty good volume. If you’re looking for market-beating returns, the IT sector is an excellent place to start, and this exchange-traded fund makes it simple to do so. QQQ and VGT duel each other in key categories like cost, exposure strategy, performance and a mystery category. More recently, though, VGT has performed better. - Socrates. Instead they are considered "communication" or "Consumer discretionary". Find out. I have put various amount of my money in VGT in the last 6-7 years (form 10-40% weighting) until the beginning of the years when I cleaned house because of COVID. By analyzing existing cross correlation between Information Technology ETF and Nasdaq QQQ Invesco, you can compare the effects of market volatilities on Information Technology and Nasdaq QQQ and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. The QQQ is actually up nearly 13% this year, compared with a 0.2% decline for the broader S&P 500. Vgt The Sector Fund That Owned Too Much Nysearca Seeking Alpha. Bogleheads are passive investors and diehard fans of Jack Bogle's simple but powerful message to diversify and let compounding grow your wealth. Learn more about VGT on Zacks.com You shouldn't rely on past performances but Im throwing it here for information sake. Active managers want your money - our advice: keep it. Owning one company, owning one sector, and owning the entire market are all equivalent in expected future performance, but by diversifying you reduce risk and reduce volatility -for free-. As part of the year end reshuffling, I looked into VGT again and I think I like QQQ better.. Back in the early 1900s, steel, oil and railroads dominated the market. Below is the comparison between VGT and VUG. Compare it to Vanguard VGT, at only 10 basis points, which has the big boys like Apple, Microsoft, Visa, Mastercard, Cisco. Crystal Kim. Find the best ETF, compare ETF Facts, Performance, Portfolio, Factors, and ESG metrics in one place. VGT has a higher expense ratio than VUG (0.1% vs 0.04%). They also provide the benefit of advanced trading strategies that are passively executed, so you don’t have to watch the market. What do our judges think? However, between 2002 and 2008 VTI actually performed better than QQQ. View Vanguard Information Technology ETF (VGT) investment & fund information. VIOV May be better choice in taxable. QQQ, ICLN, ARKK, ARKG) using dollar cost. Over the past two decades, QQQ has vastly outperformed VTI with a compound annual growth rate (CAGR) of 11.71%. VT and VOO vs VTI and VGT. Is Vanguard Information Technology ETF a Buy? QQQ: PowerShares QQQ Trust, Series 1 (ETF) Financial: NASDAQ: 64320: 1.14: 375.85: 165.9: 54550000: 31180000: Orthogonal Spread Analysis. Learn about VGT (ARCX) with our data and independent analysis including price, star rating, asset allocation, capital gains, and dividends. Global X just launched a new Nasdaq 100 Covered Call ETF that focuses less on yield and more on growth. QQQ has a higher expense ratio than VGT (0.2% vs 0.1%). This is the key finding of William Sharpe's nobel prize in economics. Because these companies are not considered "Tech" by classical definitions. Originally Posted on December 21, 2020. IGM is considered Expanded Tech instead of just a regular Tech ETF. 5 yr return 119% over QQQ's 91%. Regular tech etfs like VGT, XLK, FTEC doesnt have amazon, fb, google, so i searched for pure tech that has Faamg stocks and I found IGM (ishares Expanded tech sector) it has 1.77B assets and pretty good volume. If you are interested in a technology etf, is VGT or QQQ better for you? However, the top 10 are concentrated in the technology sector. It’s tech heavy, but if you believe that the next industrial revolution is powered by AI and technology, isn’t this where you want to put your money in? It doesn't have Google, Facebook, Amazon, etc. I'm young so i can take the risks. Most of Reddit will disagree, but I am heavily weighted on tech. by retire2022 » Mon Sep 14, 2020 10:07 pm, Powered by phpBB® Forum Software © phpBB Limited, Time: 0.396s | Peak Memory Usage: 4.75 MiB | GZIP: Off. For the past decade, return for qqq(15%) has outperformed VTI(9%). QQQ has a lower 5-year return than VGT (25.01% vs 28.72%). Share Traders Insight Facebook Share Traders Insight Linkedin Share Traders Insight Twitter Share Traders Insight Email. If you are easily spooked by volatility and big downturns then better stick to an index that covers the broader market. Compare fees, performance, dividend yield, holdings, technical indicators, and many other metrics to make a better investment decision. It took tech stocks 14 years to recover from the dot com bust. Expenses are slightly higher for QQQ, at .2% vs VGT at .1%. After the Tech Wreck: XLK vs VGT. By Eva | October 17, 2020. "Nobody knows nothing." Invesco qqq etf best technology factor modeling in r gers is vanguard s total stock market etf american muscle etf trading strategy vgt stock dividend hedge fund options. But as I get older, ill probably add VOO for lower risk. by whereskyle » Mon Apr 06, 2020 11:44 am, Post by DesertInvestor » Mon Apr 06, 2020 11:38 am, Post Investors are running from the technology stock wreck. During the same timeframe, VTI ‘only’ yielded 8.36%. Long -term investment idea for ETF AMEX:VGT on potential 2nd COVID-19 market drop. QQQ only has little over 100 companies, but is diversified across industries. Free ratings, analyses, holdings, benchmarks, quotes, and news. vgt TECL arkk qqq xlk etc.