Technology companies are still sitting on cash hoards that can be deployed in ways to improve value with investors. We are already seeing an increase uptick in company share buybacks and tech firms are now even issuing dividends.
“Vanguard Information Technology has a high level of diversification across the subsectors of the tech industry. Internet software and services make up about a fifth of the fund’s assets, with technology hardware, systems software, semiconductors, and data processing services each having allocations of between 11% and 17%,” according to the Motley Fool.
VGT charges just 0.1% per year, or $10 on $10,000 investment. That makes this technology ETF less expensive than 93% of rival funds, according to issuer data. However, the least expensive technology ETF is the Fidelity MSCI Information Technology Index ETF (NYSEArca: FTEC), which charges just over 0.08% per year.
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Tom Lydon’s clients own shares of Apple, Alphabet and Facebook.