Tech News Summary:
- Both the Invesco QQQ Trust ETF (QQQ) and the Vanguard Information Technology (VGT) ETF have outperformed the broader market this year, but VGT has generated higher returns as it focuses exclusively on technology companies.
- Both ETFs have an Outperform Smart Score of eight and a Moderate Buy consensus rating on TipRanks, with QQQ having a 12-month average price target of $375.77 and VGT having a 12-month average price target of $446.28.
- Investors seeking high-risk high-growth technology stocks may consider investing in VGT while those looking to diversify into other sectors could choose QQQ.
In the world of exchange-traded funds (ETFs), two giants have been battling it out for years: Vanguard Information Technology ETF (VGT) and Invesco QQQ Trust (QQQ). Both ETFs are heavily invested in the tech sector and offer exposure to the biggest names in the industry, including Apple, Amazon, Microsoft, and Google.
So, which ETF reigns supreme? The answer is not so clear-cut. In terms of performance, QQQ has outperformed VGT over the past year, with a return of more than 50% compared to VGT’s 40%. However, over a longer period, the tables turn, with VGT posting a 10-year annualized return of 23% compared to QQQ’s 20%.
Investors have different opinions on which ETF to choose. Some prefer QQQ because of its larger exposure to growth-oriented tech companies like Tesla and Zoom. Others prefer VGT because it has a lower expense ratio and a more diversified portfolio.
One thing is for sure – the battle between VGT and QQQ is not over yet. With the tech sector continuing to grow and innovate at a rapid pace, both ETFs are likely to remain popular options for investors looking for exposure to technology.