Which Is the Better Tech ETF for Artificial Intelligence (AI) Stocks, State Street's XLK or Vanguard's VGT?
Compare portfolio concentration, cost, and sector exposure as two top tech ETFs take different approaches to capturing industry gains.
Which Is the Better Tech ETF for Artificial Intelligence (AI) Stocks, State Street's XLK or Vanguard's VGT?
Overview
The State Street Technology Select Sector SPDR ETF (NYSEMKT:XLK) offers more concentrated exposure to tech giants, while the Vanguard Information Technology ETF (NYSEMKT:VGT) provides broader diversification across hundreds of smaller firms.
Both funds serve as primary vehicles for investors seeking artificial intelligence growth stocks through the information technology sector. While they share many top positions, their underlying strategies result in different levels of diversification and historical performance. Choosing between them depends on whether one prefers the efficiency of a giant-cap focus or a broader market reach.
Details
Beta measures price volatility relative to the S&P 500; beta is calculated from five-year monthly returns. The 1-yr return represents total return over the trailing 12 months. Dividend yield is the trailing-12-month distribution yield.
Source
Originally published at www.fool.com.
