Vanguard Funds Are Normally Great Investments, but I'd Avoid This One Right Now

The Vanguard Information Technology ETF (VGT) is flagged as a risky investment despite its strong historical performance. The fund's heavy concentration in tech stocks—particularly Nvidia, Apple, and Microsoft (45% combined weight)—makes it vulnerable to market corrections amid rising interest rates and slowing AI investment growth. In 2022, VGT fell over 30% when the S&P 500 dropped 19%, highlighting its volatility during downturns.