Meet the Low-Cost Vanguard ETF With 32.4% Invested in Nvidia, Broadcom, Micron, AMD, Intel, and Lam Research, While VOO Has Just 14.8%.
The tech sector can continue outperforming the S&P 500 over the long term.
Overview
Even before OpenAI released ChatGPT to the public in November 2022, technology was by far the most valuable sector in the S&P 500 (SNPINDEX: ^GSPC) -- led by software, hardware, consumer electronics, digital services, and cloud computing. The artificial intelligence (AI) boom has taken the S&P 500's concentrated technology sector exposure to a whole new level.
As of Aug. 31, tech stocks accounted for 37.9% of the Vanguard S&P 500 ETF (NYSEMKT: VOO) -- which mirrors the index's performance. And that's even when considering Alphabet, Meta Platforms, Amazon, Tesla, and Space Exploration Technologies are not classified as tech stocks.
Details
By comparison, the STOXX Europe 600 -- which represents nearly 90% of the investable market in Europe's developed economies -- has a mere 8.9% weighting in technology.
Source
Originally published at www.fool.com.