Worried About Which AI Stock to Buy? This Low-Cost ETF Lets You Own the Whole Trade.

The Vanguard Information Technology ETF (VGT) offers a low-cost way to gain broad exposure to the AI and technology sector with a 0.09% expense ratio, holding over 300 tech companies. However, the fund's diversification is limited by heavy concentration in its top three holdings (Nvidia 19%, Apple 16%, Microsoft 10%), which together account for nearly 45% of the portfolio. While this removes the risk of picking the wrong individual AI stock, investors still face sector-wide downturns, as evidenced by the early June chip stock selloff.