This Tech ETF Is Down 16% From Its Peak. Here's Why I'm Still Buying.

Major marketplace indexes person been steadily declining implicit the past fewer weeks, and tech stocks person been deed peculiarly hard. The tech-heavy Nasdaq Composite (NASDAQINDEX: ^IXIC) precocious entered correction territory, falling by astir 13% from its peak, arsenic of this writing.

On the surface, close present whitethorn look similar a unspeakable clip to put successful tech stocks. But there's 1 exchange-traded money (ETF) that I'm loading up on, adjacent though it's already plunged by much than 16%. Here's why.

Will AI make the world's archetypal trillionaire? Our squad conscionable released a study connected the 1 little-known company, called an "Indispensable Monopoly" providing the captious exertion Nvidia and Intel some need. Continue »

I've owned the Vanguard Information Technology ETF (NYSEMKT: VGT) for years, and adjacent arsenic its terms plunges, I'm inactive investing consistently.

This ETF is down by astir 16.4% from its highest successful precocious 2025, arsenic of this writing. In that time, its terms has fallen from astir $801 per stock successful October to astir $665 per share, arsenic of marketplace adjacent connected March 30.

That whitethorn not look similar large quality for investors similar me, arsenic it means my portfolio has shrunk successful worth implicit the past six months. But it besides means that this ETF present costs astir $136 little per stock than it did conscionable a fewer months ago.

Mindset is everything erstwhile investing. Some investors volition spot a 16% terms driblet arsenic a nonaccomplishment successful value, portion others volition spot it arsenic an accidental to bargain a high-priced concern astatine a 16% discount. Downturns are daunting, adjacent to experienced investors. But they besides make an invaluable accidental to "buy the dip" and put astatine little prices.

There is simply a accidental that banal prices volition proceed to autumn successful the coming weeks and months. However, this fund's diversified attack tin assistance bounds its risk.

The Vanguard Information Technology ETF holds 318 stocks. While astir 44% of assets are allocated to its apical 3 holdings -- Nvidia, Apple, and Microsoft -- the different fractional of the money is dedicated to hundreds of stocks from each corners of the exertion sector.

Mixing dense megacap vulnerability with wide diversification tin assistance mitigate risk. Industry-leading giants are much apt to thrive implicit time, adjacent if they acquisition short-term volatility. But investing successful hundreds of different stocks simultaneously tin assistance trim single-stock risk.

Keeping a semipermanent absorption is cardinal close now. Tech stocks are often deed harder than those successful much established industries during recessions and carnivore markets, truthful this ETF and others akin to it could person further to fall. Over time, though, beardown investments are apt to bounce back.