Should You Buy the Vanguard Information Technology ETF During the Nasdaq Correction? History Offers a Clear Answer

2 hours ago 1

Anthony Di Pizio, The Motley Fool

Sun, April 12, 2026 astatine 4:35 PM CDT 5 min read

The Nasdaq-100 scale typically outperforms much diversified indexes similar the S&P 500 (SNPINDEX: ^GSPC) because astir 60% of its portfolio is parked successful high-growth exertion stocks. But that tin beryllium a double-edged sword, due to the fact that the Nasdaq precocious fell by arsenic overmuch arsenic 12% from its all-time precocious during the wide marketplace sell-off, portion the S&P declined by a lesser 9%.

Many investors person trimmed their banal vulnerability amid rising economical uncertainty, partially driven by ongoing geopolitical tensions successful the Middle East that person sent lipid prices soaring. But looking backmost passim history, marketplace sell-offs person astir ever been spectacular buying opportunities, particularly for the high-growth exertion sector, which tends to bounce backmost with blistering returns.

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The Vanguard Information Technology ETF (NYSEMKT: VGT) is an exchange-traded money (ETF) that invests exclusively successful the accusation exertion sector. Could it beryllium the eventual semipermanent bargain during the Nasdaq-100 correction?

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America is location to 10 companies valued astatine $1 trillion oregon more, and 4 of them are from the accusation exertion assemblage alone. They include:

Nvidia (NASDAQ: NVDA): $4.6 trillion.
Apple (NASDAQ: AAPL): $3.8 trillion.
Microsoft (NASDAQ: MSFT): $2.8 trillion.
Broadcom (NASDAQ: AVGO): $1.8 trillion.

The Vanguard Information Technology ETF holds 318 stocks, but the 4 names supra relationship for a whopping 48.6% of the worth of its full portfolio, giving them important power implicit its performance.

Stock

Vanguard ETF Portfolio Weighting

1. Nvidia	18.06%
2. Apple	15.83%
3. Microsoft	10.39%
4. Broadcom	4.34%

Data source: Vanguard. Portfolio weightings are close arsenic of Feb. 28, 2026, and are taxable to change.

Those 4 stocks person delivered a blistering median instrumentality of much than 1,500% implicit the past decade, and since the Vanguard ETF assigns them overmuch higher weightings than does the S&P 500 and the Nasdaq-100, it's nary astonishment the money has beaten some indexes implicit that period.

Nvidia, Apple, Microsoft, and Broadcom are apt to proceed delivering beardown returns fixed their captious roles successful the artificial quality (AI) industry, but a fig of different accusation exertion stocks besides person the imaginable to marque important upside contributions to the Vanguard ETF going forward.

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