The Nasdaq (Nasdaqindex: ^IXIC) The correction area has been officially received, dropped by almost 13% since mid -February, from this letter. Monday marked the worst decrease in the index since 2022, because it decreased by 4% for concern about an imminent bear market or recession.
The future is still uncertain for the market, and nobody knows whether stock prices will return if we are on our way to a deeper decline. But in the long term it is almost guaranteed that the market will recover.
Despite the worries of many investors, at the moment it could be a fantastic opportunity to “buy the dip” and to invest while the prices are lower, so that you may gather for considerable profits as soon as the market eventually bounces back. If you are looking for a tech ETF to take a discount, the Vanguard Information Technology ETF (Freshly sampled: VGT) Can now be a great purchase.
The Vanguard Information Technology ETF contains 316 shares from all corners of the technical sector. With the technically heavy Nasdaq in a correction area, many of the shares within this ETF have also been hit hard in recent weeks.
The fund itself has fallen by around 11% since the beginning of the year, while the top three interests – Apple” NvidiaAnd Microsoft – In that period, about 9%, 20%and 10%respectively fell.
Historically, however, this ETF has a strong history of extending rough spots. Since its foundation in 2004, it has survived the big recession, the COVID-19-Crash and the most recent slump in 2022, while the total return of almost 1,000%earned.
VGT -data by YCHARTS
In other words, if you had invested $ 10,000 in this ETF in 2004 and just stayed on the market, you would have around $ 108,000 today.
Of course, the performance of the past does not predict future returns. There are no guarantees that this ETF will continue to bloom in the coming years or that all shares within the fund will restore. But by investing in an ETF, you get exposure to hundreds of shares at the same time. That can better diversify your portfolio and limit your risk if the market takes a more serious turn.
Another advantage of this fund is the mix of blue chip shares together with smaller companies. Apple, Nvidia and Microsoft together form just over 44% of the entire ETF. The other 56%consists of approximately the remaining 313 shares.
Deriding a large part of the fund to a handful of shares can increase the risk, but Juggernaut companies are also more likely to go through heavy economic times. While some smaller companies can struggle during a market breakdown, they also have more room for explosive growth when prices start to pick up again.
