Nov. 09, 2025 11:08 PM ETVanguard Information Technology Index Fund ETF Shares (VGT), XLK, , , , , , , , , , ,

Summary

• Vanguard Information Technology ETF and Technology Select Sector SPDR Fund have soared, but both are highly concentrated in a few mega-cap tech stocks.
• VGT and XLK face risks from high valuations, economic headwinds, and potential reversals in the AI-driven rally, making them vulnerable to significant pullbacks.
• I recommend investors reduce exposure to these tech ETFs and consider rebalancing portfolios, as the S&P 500 and small-cap value funds may offer better risk-reward.
• Given current market conditions, cash and TIPS are attractive alternatives, and I favor more diversified or defensive equity strategies over concentrated tech exposure.

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The Vanguard Information Technology ETF (VGT) is a large ETF that has increased a lot in price. It is well-managed and is run by a company I highly admire at a cost to holders that is

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