5 Best ETFs To Buy Now

3. Vanguard Information Technology Index Fund ETF Shares (NYSE Arca: VGT)

5-year Share Price Performance as of March 9, 2024: 162.20%

Vanguard Information Technology Index Fund ETF Shares (NYSE Arca: VGT) aims to mirror the performance of an index measuring the investment return of stocks in the information technology sector. It employs a passive management approach, utilizing a full-replication strategy when feasible and a sampling strategy when regulatory constraints apply. Vanguard Information Technology Index Fund ETF Shares (NYSE Arca: VGT) includes stocks of companies involved in the electronics and computer industries, or companies manufacturing products based on the latest applied science. The ETF was established on January 26, 2004. It offers an expense ratio of 0.10% and a portfolio consisting of 312 stocks. Vanguard Information Technology Index Fund ETF Shares (NYSE Arca: VGT) is one of the best ETFs to buy. 

Vanguard Information Technology Index Fund ETF Shares (NYSE Arca: VGT)’s top holdings include Adobe Inc. (NASDAQ:ADBE). On December 13, the company reported financial results for its fourth quarter ending December 1, 2023. The non-GAAP EPS of $4.27 and revenue of $5.05 billion outperformed Wall Street estimates by $0.13 and $30 million, respectively. 

According to Insider Monkey’s fourth quarter database, 105 hedge funds reported owning stakes in Adobe Inc. (NASDAQ:ADBE), compared to 112 funds in the last quarter. 

Here is what Polen Global Growth has to say about Adobe Inc. (NASDAQ:ADBE) in its Q3 2023 investor letter:

“Both Alphabet and Adobe’s businesses continue to perform well. With respect to Adobe, the most recent quarter delivered more of the same with constant currency revenue growing 13%, margin expansion, and over 2% of shares outstanding repurchased for non-GAAP earnings growth of over 20%. We believe its approach to GenAI through Firefly, which guarantees safe content because it trains on Adobe Stock, will continue to be attractive to enterprises. The counter to GenAI, and something we are keeping an eye on with Alphabet and Adobe, is that it requires heavy investment. While both businesses can leverage their scale and manage costs in other areas, we expect the investment in future growth through GenAI will weigh on company-wide margins over the near term.”