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Exchange Traded Fund

Vanguard Information Technology Index Fund (VIT)

The Vanguard Information Technology Index Fund (VIT) is an exchange-traded fund (ETF) that tracks the performance of the information technology sector in the US equity market. It is listed on the New York Stock Exchange (NYSE) under the ticker symbol "VIT."

Here are some key things to know about VIT:

1. Index composition: VIT seeks to track the performance of the MSCI US Investable Market Information Technology 25/50 Index, which covers a wide range of technology stocks in the US market. The fund's portfolio includes companies such as Apple, Microsoft, Amazon, Alphabet (Google), and Facebook.

2. Key Holdings: As of March 2023, VIT's top holdings include Apple (AAPL), Microsoft (MSFT), Amazon (AMZN), Alphabet (GOOGL), and Facebook (FB).

3. Performance: VIT has generally outperformed the broader market over the long term. In the past 10 years, VIT has returned around 17% annualized, while the S&P 500 Index has returned around 11% annualized.

4. Expenses: VIT has a low average spread of 0.11%, which is the cost difference between the bid and ask prices when buying or selling the ETF. Its expense ratio is 0.10% per year, which means that for every $1,000 invested, you would pay $1 annually in management fees.

5. Trading: VIT trades on the NYSE Arca exchange, and investors can buy and sell shares throughout the day. It has a median 3-month trading volume of around 238,000 shares, indicating decent liquidity.

6. Market capitalization: VIT has an approximate market capitalization of $29.7 billion as of March 2023, making it one of the larger ETFs in the technology sector.

7. Dividend yield: VIT's 12-month dividend yield is around 1.28%, which is slightly lower than the S&P 500's dividend yield. However, it's important to note that the fund's primary focus is on technology stocks, which generally have lower dividend yields compared to other sectors.

8. Manager tenure: VIT is a passively managed ETF, which means it doesn't have a portfolio manager with a specific tenure. The fund tracks an index, and the underlying holdings are adjusted to match changes in the index.

9. Growth potential: Technology stocks are known for their growth potential, and VIT offers exposure to many high-growth companies. However, it's essential to remember that technology stocks can also be volatile, and investors should be prepared for potential fluctuations in the fund's value.

10. Other details: VIT is a no-load fund, meaning that there is no fee to buy or sell shares. However, brokerage commissions may apply when buying or selling the ETF through a brokerage account. VIT is also anindex fund, which means it aims to track its underlying index's performance before fees and expenses, rather than trying to beat it.

It's important to conduct thorough research, consult with financial experts, and consider your individual financial goals and risk preferences before making investment decisions.