Vgt long term profit
8/16/2024 06:38am
The long-term profitability of VGT can be inferred from its historical performance:
1. **Strong Long-Term Performance**: VGT has a 10-year average annual NAV return of 19.8%. This indicates a consistent track record of generating profits over the long term.
2. **Diversification and Market Exposure**: VGT invests in a diversified portfolio of leading technology stocks, including major AI players like Microsoft, Nvidia, and Broadcom. This diversification helps mitigate risk and ensures exposure to the broader AI technology market.
3. **Inclusion of AI Enablers**: Nvidia, one of the top AI enablers, is among VGT's holdings. As AI technology continues to advance and become more integral to various industries, the long-term profitability of VGT's portfolio is supported.
4. **Low Expense Ratio**: VGT has a low expense ratio of 0.10%, which means more of your investment goes towards actual assets rather than management fees. This can contribute to higher long-term returns.
In conclusion, VGT's long-term profitability is likely supported by its diversified portfolio, exposure to key AI enablers, and strong historical performance.