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Globe and Mail
11 hours ago
- Business
- Globe and Mail
2 Vanguard ETFs That Can Turn $300 per Month Into Over $1 Million
Investing a regular amount of money into the stock market each month can be an excellent way to grow your savings and build up a portfolio that's eventually worth $1 million or more. But it can be challenging to do, especially since you have to ensure you can continue to afford making monthly investments, and then picking which investments to make with that money. Amid volatile economic conditions, that's no easy task. You can, however, simplify the process by going with some solid exchange-traded funds (ETFs) that can diversify your portfolio and set you up for some great growth opportunities in the future. A couple of low-cost Vanguard ETFs to consider for this purpose include the Vanguard Growth Index Fund (NYSEMKT: VUG) and the Vanguard Information Technology Index Fund (NYSEMKT: VGT). Where to invest $1,000 right now? Our analyst team just revealed what they believe are the 10 best stocks to buy right now. Continue » Here's why investing $300 per month into either one of these ETFs could put you on track to generating a $1 million portfolio in the future. Vanguard Growth Index Fund The Vanguard Growth Index Fund is a great, growth-focused ETF you can add to your portfolio. It charges an expense ratio of only 0.04%, which means you don't have to worry about high fees chipping away at your gains. What's attractive about this fund is that it focuses on large-cap growth stocks. These are the types of investments that can drive long-run returns for your portfolio and make the most of your money. Stocks such as Tesla, Amazon, and Nvidia are all among its top-10 holdings. These are leaders within their respective industries, and their businesses are synonymous with growth. With more than 160 stocks in total, this is a well-diversified ETF to simply buy and hold. It also yields around 0.5%. Over the past decade, the ETF has achieved total returns (which include dividend payments) of approximately 327%. That averages out to a compound annual growth rate (CAGR) of 15.6%. But for the sake of being conservative, let's assume that its returns will slow down given how hot the market has been in the past few years and how it's reaching record levels. If the ETF averages a return of about 10% for the very long haul (which is in line with the S&P 500 's long-term average), then a $300 per-month investment could grow to more than $1 million after a period of 34 years. This would require investing in the ETF every month during that time frame. But by doing so, you can put yourself on a path to producing some fantastic returns thanks to the effects of compounding. VUG Total Return Level data by YCharts. Vanguard Information Technology Index Fund As terrific of a growth investment as the Vanguard Growth Index Fund has been in recent years, it still falls well short of the gains the Vanguard Information Technology Index Fund has produced during that stretch. At 543%, its 10-year total returns average out to an annual gain of 20.5%. That's a mind-boggling return, and it highlights just how impressive the stocks within this ETF have been. There will be some overlap between this fund and the growth ETF, but the big difference is there is heavier exposure to big tech. Nvidia, Microsoft, and Apple account for a combined 45% of the Vanguard Information Technology ETF's total holdings, but they make up just around 32% of the growth ETF. That difference can be substantial over time, especially given how well a massive stock like Nvidia has performed. In 10 years, its returns have been truly exceptional, totaling 28,000%. Given Nvidia's size today as one of the most valuable companies in the world, odds are its returns will be far more modest over the next decade. While they may still be great, it's probably a good idea to factor in a healthy dose of conservatism with this ETF as well given how much of a boost Nvidia has given it in the past. Even though the ETF is focused on tech and growth, averaging 20% annual returns likely isn't going to be sustainable over the very long haul. The expectation of a 10% return may also be prudent with this ETF to ensure your expectations aren't set too high for future gains. As with the growth ETF, if you invest $300 per month into this fund, you can also be on the path to a $1 million portfolio. If this ETF continues to outperform the market, however, then it may take less than 34 years to get to $1 million. But by staying the course and investing regularly into this or the growth ETF, you can be in a good position for building up a solid portfolio over the long haul. The Vanguard Information Technology ETF charges an expense ratio of 0.09%, and while that's a bit higher than the growth ETF's fees, they aren't going to drastically alter your prospects for generating potentially life-changing returns from regularly investing in this fund. Should you invest $1,000 in Vanguard Index Funds - Vanguard Growth ETF right now? Before you buy stock in Vanguard Index Funds - Vanguard Growth ETF, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Vanguard Index Funds - Vanguard Growth ETF wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $659,171!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $891,722!* Now, it's worth noting Stock Advisor 's total average return is995% — a market-crushing outperformance compared to172%for the S&P 500. Don't miss out on the latest top 10 list, available when you join Stock Advisor. See the 10 stocks » *Stock Advisor returns as of June 9, 2025 John Mackey, former CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool's board of directors. David Jagielski has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Amazon, Apple, Microsoft, Nvidia, Tesla, and Vanguard Index Funds-Vanguard Growth ETF. The Motley Fool recommends the following options: long January 2026 $395 calls on Microsoft and short January 2026 $405 calls on Microsoft. The Motley Fool has a disclosure policy.
Yahoo
12-06-2025
- Business
- Yahoo
Should You Invest in the Vanguard Information Technology ETF (VGT)?
The Vanguard Information Technology ETF (VGT) was launched on 01/26/2004, and is a passively managed exchange traded fund designed to offer broad exposure to the Technology - Broad segment of the equity market. While an excellent vehicle for long term investors, passively managed ETFs are a popular choice among institutional and retail investors due to their low costs, transparency, flexibility, and tax efficiency. Additionally, sector ETFs offer convenient ways to gain low risk and diversified exposure to a broad group of companies in particular sectors. Technology - Broad is one of the 16 broad Zacks sectors within the Zacks Industry classification. It is currently ranked 7, placing it in top 44%. The fund is sponsored by Vanguard. It has amassed assets over $88.65 billion, making it the largest ETF attempting to match the performance of the Technology - Broad segment of the equity market. VGT seeks to match the performance of the MSCI US Investable Market Information Technology 25/50 Index before fees and expenses. The MSCI US Investable Market Information Technology 25/50 Index is designed to transition in and out of securities affected by pending updates to the information technology sector. Cost is an important factor in selecting the right ETF, and cheaper funds can significantly outperform their more expensive counterparts if all other fundamentals are the same. Annual operating expenses for this ETF are 0.09%, making it one of the least expensive products in the space. It has a 12-month trailing dividend yield of 0.51%. Even though ETFs offer diversified exposure which minimizes single stock risk, it is still important to look into a fund's holdings before investing. Luckily, most ETFs are very transparent products that disclose their holdings on a daily basis. This ETF has heaviest allocation in the Information Technology sector--about 99.90% of the portfolio. Looking at individual holdings, Apple Inc (AAPL) accounts for about 17.15% of total assets, followed by Microsoft Corp (MSFT) and Nvidia Corp (NVDA). So far this year, VGT has gained about 1.32%, and it's up approximately 13.04% in the last one year (as of 06/12/2025). During this past 52-week period, the fund has traded between $470.37 and $647.97. The ETF has a beta of 1.24 and standard deviation of 25.61% for the trailing three-year period, making it a medium risk choice in the space. With about 309 holdings, it effectively diversifies company-specific risk. Vanguard Information Technology ETF holds a Zacks ETF Rank of 1 (Strong Buy), which is based on expected asset class return, expense ratio, and momentum, among other factors. Because of this, VGT is an outstanding option for investors seeking exposure to the Technology ETFs segment of the market. There are other additional ETFs in the space that investors could consider as well. IShares U.S. Technology ETF (IYW) tracks Dow Jones U.S. Technology Index and the Technology Select Sector SPDR ETF (XLK) tracks Technology Select Sector Index. IShares U.S. Technology ETF has $20.15 billion in assets, Technology Select Sector SPDR ETF has $75 billion. IYW has an expense ratio of 0.39% and XLK charges 0.08%. To learn more about this product and other ETFs, screen for products that match your investment objectives and read articles on latest developments in the ETF investing universe, please visit Zacks ETF Center. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Vanguard Information Technology ETF (VGT): ETF Research Reports Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report NVIDIA Corporation (NVDA) : Free Stock Analysis Report Technology Select Sector SPDR ETF (XLK): ETF Research Reports iShares U.S. Technology ETF (IYW): ETF Research Reports This article originally published on Zacks Investment Research ( Zacks Investment Research Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
03-06-2025
- Business
- Yahoo
Big ETF Inflows of Last Week: QQQ, IBIT & More
ETFs across various categories pulled in $17 billion in capital last week, pushing year-to-date inflows to $442 billion. This has put 2025 on track to be one of the biggest years ever for ETF demand.U.S. equity ETFs led the way with $6.3 billion in inflows, followed by $3.6 billion in U.S. fixed-income ETFs and $3 billion in international ETFs. Invesco QQQ Trust QQQ, iShares Bitcoin Trust IBIT, Vanguard Information Technology ETF VGT, Vanguard S&P 500 ETF VOO, and SPDR Gold Trust ETF GLD dominated the top creation list last Street logged gains last week despite rising tensions between the United States and China. Both countries accused one another of breaching the temporary trade truce established in May. However, markets largely dismissed the rhetoric, betting on eventual stabilization. The Nasdaq Composite led the way, gaining 2.01% while the S&P 500 and Dow Jones rose 1.9% and 1.6%, respectively (read: 3 Factors That Could Boost Wall Street ETFs Despite Tariff Uncertainty). Bond yields edged slightly lower but stayed close to recent highs. The long end of the yield curve remains under pressure, with the 30-year Treasury yield holding near 5%, signaling ongoing concerns about inflation and fiscal Bitcoin prices retreated after reaching record highs above $111,000 the previous week, last trading around $104,000. Despite the pullback, enthusiasm for cryptocurrencies remains strong, with continued investor interest supporting the asset class. Gold demand also remained robust. Even amid a rising stock market, gold held its ground, underscoring its role as a strategic hedge in diversified have detailed the ETFs QQQ Trust (QQQ)Invesco QQQ Trust is the top asset creator, pulling in $3 billion in capital. It provides exposure to the 101 largest domestic and international non-financial companies listed on the Nasdaq by tracking the Nasdaq 100 Index. Invesco QQQ is one of the largest and most popular ETFs in the large-cap space, with an AUM of $333.9 billion and an average daily volume of 47 million shares. QQQ charges investors 20 bps in annual fees and has a Zacks ETF Rank #3 (Hold) with a Medium risk Bitcoin Trust (IBIT)iShares Bitcoin Trust raked in $2 billion in capital last week. It seeks to reflect the performance of the price of Bitcoin and has been the most traded Bitcoin ETF since its launch. It enables investors to access Bitcoin within a traditional brokerage account. The fund charges 25 bps in annual fees from investors. IBIT has AUM of $70.4 billion and trades in an average daily volume of 47 million shares (read: ETFs to Ride on New Wave of $111K Bitcoin Rally).Vanguard Information Technology ETF (VGT)Vanguard Information Technology ETF has gathered $1.1 billion in its asset base. It manages an asset base of $87 billion and provides exposure to 307 technology stocks. VGT currently tracks the MSCI US Investable Market Information Technology 25/50 Index. Semiconductors, systems software, technology hardware storage & peripherals, and application software are the top four sectors with double-digit exposure each. Vanguard Information Technology ETF has an expense ratio of 0.09% and sports a Zacks ETF Rank #1 (Strong Buy) with a Medium risk outlook. It trades in an average daily volume of 557,000 shares. Vanguard S&P 500 ETF (VOO)Vanguard S&P 500 ETF saw inflows of $896.2 million in capital. It tracks the S&P 500 Index and holds 505 stocks in its basket, each accounting for no more than 6.8% of the assets. Vanguard S&P 500 ETF is heavy on the information technology sector, while financials, healthcare and consumer discretionary round off the next three spots with a double-digit allocation each. Vanguard S&P 500 ETF charges investors 3 bps in annual fees. It has an AUM of $657.3 billion and trades in an average daily volume of 6 million shares. VOO sports a Zacks ETF Rank #1 with a Medium risk Gold Trust ETF (GLD)SPDR Gold Trust ETF has gathered $821 million in its asset base. It tracks the price of gold bullion measured in U.S. dollars and kept in London under the custody of HSBC Bank USA. GLD is an ultra-popular gold ETF with an AUM of $99 billion and a heavy volume of about 11 million shares a day. SPDR Gold Trust ETF charges 40 bps in fees per year from investors and has a Zacks ETF Rank #3 with a Medium risk outlook (read: Gold Eyes Best Week in a Month: Will ETFs Sustain the Rally?). Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Invesco QQQ (QQQ): ETF Research Reports SPDR Gold Shares (GLD): ETF Research Reports Vanguard S&P 500 ETF (VOO): ETF Research Reports Vanguard Information Technology ETF (VGT): ETF Research Reports This article originally published on Zacks Investment Research ( Zacks Investment Research Sign in to access your portfolio
Globe and Mail
01-06-2025
- Business
- Globe and Mail
2 Top Bargain Stocks Ready for a Bull Run
The tech sector has been a market-beating beast in recent years. Tech-heavy exchange-traded funds (ETFs) like the Vanguard Information Technology ETF (NYSEMKT: VGT) and the Invesco QQQ Trust (NASDAQ: QQQ) have delivered annual returns of more than 21% over the last three years. Broad market trackers like the Vanguard S&P 500 ETF (NYSEMKT: VOO) only gained 15.5% per year over the same period. Yes, that's a fantastic return from a historic perspective, but the tech sector offered even stronger gains. Where to invest $1,000 right now? Our analyst team just revealed what they believe are the 10 best stocks to buy right now. Learn More » The technology boom has been driven by artificial intelligence (AI) news, starting with the public release of ChatGPT in November 2022. Many leaders in the AI market have soared sky-high, adding fuel to the tech sector's market performance fires, but also making those market darlings a bit expensive. Fortunately, the market-moving forces left a few top-notch companies behind. I still see several tech stocks with a combination of bright business prospects and modest stock prices. Let's check out a couple of underappreciated bargain-bin tech stocks. This dynamic duo looks ready for a fresh bull run. 1. Criteo Digital advertising has been a troubled sector since the first signs of an inflation crisis in 2021. Paris-based commerce media specialist Criteo (NASDAQ: CRTO) provides purchase-inspiring ad services to global brands. This focus placed the Parisian company in the epicenter of the inflation-based slowdown -- why invest in lavish marketing campaigns when consumers are pinching pennies and tightening belts? Criteo's revenues have indeed slumped since then, and so has the stock price. You know what's surging in recent quarters, though? That would be Criteo's free cash flows: CRTO Free Cash Flow data by YCharts The cash profits took a temporary dip, but came back stronger, with trailing cash flows reaching an all-time high in May's Q1 2025 report. But Criteo's stock price is down more than 30% in the last quarter, and the shares are trading at the bargain-bin valuation of 11.3 times earnings and 6.6 times free cash flow. I'm not saying the digital ad market is roaring back to life in the spring of 2025. The political climate may result in another inflation spike, and advertisers are already reducing their ad-spot spending right now. Hence, Criteo's undervalued stock may see more volatility and weakness in the coming months. However, I think the market makers have underestimated Criteo's ability to turn cash profits in a soft market. The Criteo shares you buy at a discount in this downswing should return to more reasonable valuation ratios someday. At the same time, the company's robust cash generation makes it less vulnerable to short-term financial challenges. You can buy Criteo stock with confidence while it's cheap. This one is poised for great long-term returns, and patience is the greatest Wall Street virtue of them all. 2. Hewlett Packard Enterprise My next recommendation is more of a household name. Hewlett Packard Enterprise (NYSE: HPE) has been around (in some form) since 1939. As the data center and cloud computing operator of the old HP business, HP Enterprise (aka HPE) plays a serious part in the AI boom. Indeed, seven out of the 10 most powerful supercomputers today were built by HP Enterprise. Only Chinese rival Lenovo has more systems in the top 500 than HP Enterprise, and nobody can match the total number-crunching performance of this company's ultra-powerful systems. Any company or organization that needs a top-performance system for their AI training and operations is likely to check out HP Enterprise's catalog first. So I'm talking about an AI powerhouse here. Yet, the stock price has dropped 16% lower year to date while smaller system builders Super Micro Computers (NASDAQ: SMCI) and Dell (NYSE: DELL) are up by 41% and down by just 1%, respectively. Trading at 8.9 times earnings and 14.3 times free cash flow, HP Enterprise looks downright cheap next to these challengers. HP Enterprise's stock could double or triple in price and still be affordable next to Supermicro or Dell. This could be a great value play on the hardware side of the AI boom. Should you invest $1,000 in Criteo right now? Before you buy stock in Criteo, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Criteo wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $653,389!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $830,492!* Now, it's worth noting Stock Advisor 's total average return is982% — a market-crushing outperformance compared to171%for the S&P 500. Don't miss out on the latest top 10 list, available when you join Stock Advisor. See the 10 stocks » *Stock Advisor returns as of May 19, 2025
Globe and Mail
30-05-2025
- Business
- Globe and Mail
2 Unstoppable Vanguard ETFs That Have Doubled in Just 5 Years
Investing in exchange-traded funds (ETFs) is usually associated with safe and stable long-term investing. But not all ETFs are the same. And just because you invest in one doesn't mean you can't still earn a great return. Two ETFs that have produced some fantastic returns for investors in the past five years are the Vanguard Information Technology Index Fund ETF (NYSEMKT: VGT) and the Vanguard Growth Index Fund ETF (NYSEMKT: VUG). Where to invest $1,000 right now? Our analyst team just revealed what they believe are the 10 best stocks to buy right now. Learn More » Here's why these funds have performed so well, and why it may not be too late to invest in them today. Vanguard Information Technology Index Fund ETF This Vanguard ETF invests broadly within the tech sector. It has more than 300 stocks in its portfolio, giving exposure to companies involved with semiconductors, application software, electronics components, and many other areas of tech. And with tech stocks surging in value in recent years due to the excitement surrounding artificial intelligence (AI), it's perhaps not too surprising to learn that this ETF has risen by 135% in the past five years. And that rises to around 141% when you include the fund's dividend. By comparison, the S&P 500 's total returns (which include dividends) are 109% over that period. While the past five years have been good ones for the market as a whole, tech stocks have done particularly well. Given the strong trends in AI and the investments that continue to flow into AI-related projects, this ETF can still be an excellent option for your portfolio. While it's by no means a pure AI investment, the stocks within this ETF can all benefit from trends related to it as tech spending as a whole is likely to increase as companies invest in next-gen technologies and upgrade their existing infrastructure. The fund also charges a modest expense ratio of 0.09%, which can be crucial in ensuring that fees aren't taking a big chunk of your returns. Most of the stocks in the ETF account for no more than 4% of its total holdings, with the exception being the big three: Apple, Microsoft, and Nvidia, which together make up nearly 46% of the fund's portfolio. But given their leading positions in tech, how these stocks go, other tech stocks are likely to follow, anyway. If you're looking for a long-term investment and don't mind the volatility that can sometimes come with tech stocks, the Vanguard Information Technology Index Fund can be an excellent ETF to buy and hold for years. Vanguard Growth Index Fund ETF For a more balanced option outside of just tech, you may want to consider the Vanguard Growth Index Fund ETF. It simply focuses on the largest growth stocks in the country. It is, however, a bit more concentrated since it has positions in 166 stocks (as of April 30). While tech stocks take up the bulk of the portfolio at more than 57% of the ETF's holdings, it also has a strong position in other sectors. Consumer discretionary stocks account for 19% of its portfolio, and industrials make up close to 10%. This ETF has also delivered market-beating returns for investors, but with less focus on tech, the gap between it and the S&P 500 hasn't been as significant as has been the case with the Vanguard Information Technology ETF. ETF Returns data by YCharts. The same top three stocks that make up the bulk of the Vanguard tech fund are also the top three in this ETF. But in the Vanguard Growth ETF, Apple, Microsoft, and Nvidia combine for around 31% of its holdings. Having less exposure to these big three stocks helps explain why the fund's performance hasn't been as strong as the other Vanguard ETF listed here. However, that also means more diversification for investors and potentially less risk in the long run. The more diversified Vanguard Growth Index Fund ETF, which charges a lower expense ratio of 0.04%, can be a better option for more risk-averse growth investors who don't necessarily want to be all-in on tech. Should you invest $1,000 in Vanguard Index Funds - Vanguard Growth ETF right now? Before you buy stock in Vanguard Index Funds - Vanguard Growth ETF, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Vanguard Index Funds - Vanguard Growth ETF wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $638,985!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $853,108!* Now, it's worth noting Stock Advisor 's total average return is978% — a market-crushing outperformance compared to171%for the S&P 500. Don't miss out on the latest top 10 list, available when you join Stock Advisor. See the 10 stocks » *Stock Advisor returns as of May 19, 2025 David Jagielski has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Apple, Microsoft, Nvidia, and Vanguard Index Funds-Vanguard Growth ETF. The Motley Fool recommends the following options: long January 2026 $395 calls on Microsoft and short January 2026 $405 calls on Microsoft. The Motley Fool has a disclosure policy.
