Investing in Innovation: 5 Best Tech and Disruptive ETFs

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

5-Year Share Price Performance as of March 20: 161.79%

Vanguard Information Technology Index Fund ETF Shares (NYSE:VGT) ranks 2nd on our list of the best tech ETFs. Vanguard Information Technology Index Fund ETF Shares (NYSE:VGT) aims to mirror the performance of the Information Technology Spliced Index, which comprises companies serving electronics and computer industries or producing products based on applied science. As of February 29, 2024, the ETF holds a portfolio of 315 stocks with net assets totaling $76 billion. Its expense ratio stands at 0.10%. Vanguard Information Technology Index Fund ETF Shares (NYSE:VGT) is one of the best tech ETFs to invest in.  

Advanced Micro Devices, Inc. (NASDAQ:AMD) is one of the top holdings of Vanguard Information Technology Index Fund ETF Shares (NYSE:VGT). On March 4, Advanced Micro Devices, Inc. (NASDAQ:AMD) expressed confidence in meeting its $3.5 billion target for 2024 data center GPU revenue, with estimated 10% market share. Advanced Micro Devices, Inc. (NASDAQ:AMD) also showed optimism in the server CPU market, citing enterprise share gains and renewed growth in the total addressable market.

According to Insider Monkey’s fourth quarter database, 120 hedge funds were bullish on Advanced Micro Devices, Inc. (NASDAQ:AMD), compared to 110 funds in the prior quarter. 

Jackson Peak Capital stated the following regarding Advanced Micro Devices, Inc. (NASDAQ:AMD) in its fourth quarter 2023 investor letter:

“On the long side of the portfolio, a core theme we remain invested behind is the data center infrastructure buildout and AI chips arms race that we’ve discussed since our first letter in Q2. Some skepticism has crept into the market, and it’s understandable given the huge ramp in 2023. However, our research continues to suggest 2023 was the start of a multi-year platform shift. Value will accrue to varying segments of the AI value chain at different parts of the cycle. We continue to see value in the “boots on the ground” winners in the data center buildout (Vertiv, Modine Manufacturing, Celestica). Our positioning in AI semiconductor companies (NVDA and Advanced Micro Devices, Inc. (NASDAQ:AMD)) has ebbed and flowed given we are cognizant (perhaps too much so) that these names are crowded positions across investor style types. We’ve done well in these chip stocks since inception and NVDA is currently a long, and we’re trying to “let winners run” while using sizing to risk manage these names due to the market-wide positioning bias in semiconductors.”