Before You Buy the Vanguard S&P 500 ETF, There's 1 Sneaky Risk Investors Should Know

While the Vanguard S&P 500 ETF has delivered strong 323% returns over the past decade, investors should be aware of significant concentration risk. The ETF is heavily weighted toward technology stocks (39.7% of assets), with the top five holdings (Nvidia, Microsoft, Alphabet, Amazon, Meta) comprising 25.8% of the portfolio. This concentration means investors are making a bullish bet on AI's future, as these companies are investing over $1 trillion in AI data center buildouts by 2027, presenting heightened financial risk.