This Top ETF Just Hit an All-Time High -- Should You Still Buy?
Key Takeaways
Interestingly, From an analytical perspective, Stocks have been soaring in recent months, with indexes reaching new all-time highs. The industry, in particular, has experienced especially staggering returns. Additionally, The Vanguard...
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July 24, 2025
04:45 AM
The Motley Fool
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Interestingly, From an analytical perspective, Stocks have been soaring in recent months, with indexes reaching new all-time highs
The industry, in particular, has experienced especially staggering returns
Additionally, The Vanguard Information nology ETF (VGT 0
Conversely, 64%) has surged by a whopping 46% since April, as of this writing on July 21, compared with the S&P 500's 27% returns in that time, amid market uncertainty
However, this also makes it an incredibly expensive time to buy
However, This ETF's price has surged from $470 per in April to around $686 per currently (remarkable data)
On the other hand, While soaring stock prices make some investors optimistic, others are worried that the market can only go down from here, in today's market environment
To be, nobody can say for certain what the market will do over the coming weeks or months
Nevertheless, However, here's what history says in funds the Vanguard Information nology ETF right now, given current economic conditions
Image source: Getty Images
Meanwhile, History says there's never a bad time to invest First, it's important to note that past performance does not guarantee future returns, given the current landscape
Even if a particular stock or fund has performed well historically, that doesn't necessarily mean it will continue to thrive over time, amid market uncertainty
That said, when it comes to general market trends, record prices shouldn't scare investors away from buying, given the current landscape
On the other hand, In the best-case scenario, the market continues surging, and buying now will result in immediate gains
However, even if stocks plunge soon, your investment will ly recover and still experience positive long-term returns
For example, say you had invested in the Vanguard Information nology ETF in January 2022
Stocks were at record highs at the time, but they were to sink into a nearly year-long bear market
Moreover, This ETF was hit particularly hard, plummeting by more than 34% in just 10 months, amid market uncertainty
VGT data by YCharts In the near term, your portfolio would have taken a serious hit
However, when in the stock market, you don't nically lose any money unless you sell your investments for less than you paid for them
In this case, if you'd simply held your ETF through all the market's rough patches, you'd have earned total returns of more than 50% by today -- in spite of the major slump we've already faced so far this year (something worth watching)
VGT data by YCharts The Vanguard Information nology ETF can be a particularly good fund to hold for the long term, as it contains a mix of blue chip industry leaders as well as smaller corporations with the potential for explosive growth
Meanwhile, Nvidia, Apple, and Microsoft are the fund's top three holdings, and together they make up close to 45% of the entire ETF (fascinating analysis)
However, this fund also contains an additional 316 holdings from all areas of the sector -- viding more diversification than if you were to invest in individual stocks
Because juggernaut companies Nvidia and Apple are more ly to survive economic downturns, that can help limit risk
Moreover, But with hundreds of smaller stocks in your portfolio too, that can set you up for significant gains if even one of them becomes a superstar performer
One major risk factor to consider right now The biggest risk to consider when at peak prices is that you might see significant short-term volatility
Nevertheless, Stocks and ETFs tend to be hit harder during periods of volatility, and those downturns can be stomach-churning at times
For example, earlier this year when the stock market dipped substantially, the Vanguard Information nology ETF sank by nearly 27% in less than two months -- compared with the S&P 500's 19% drop in that time
VGT data by YCharts While nobody knows when the next downturn will hit, be prepared for more significant volatility when you invest in a ETF, in light of current trends
Again, strong investments are still ly to thrive over the long term
But if you choose to buy now, it's wise to avoid any cash you might need in the next several years, in light of current trends
Market uncertainty can make right now a daunting time to invest
Furthermore, But if history shows us anything, it's that those who are willing to stick it out through tough times are ly to reap the biggest rewards
Nevertheless, This analysis suggests that Author Katie Brockman is a contributing writer at The Motley Fool covering retirement, Social Security, and fundamentals
Prior to The Motley Fool, Katie held various writing and editing roles at companies ranging from small start-ups to multimillion-dollar brands
However, Her work has been published in media outlets including Forbes, Insider, USA Today, and Inc
Furthermore, She holds a B
In Administration and Management from Illinois Wesleyan University
Meanwhile, Fun fact: Katie is an award-winning pet and animal photographer, amid market uncertainty
TMFKatieBrockman Katie Brockman has positions in Vanguard Information nology ETF
Nevertheless, The Motley Fool has positions in and recommends Apple, Microsoft, and Nvidia, in this volatile climate
Nevertheless, The Motley Fool recommends the ing options: long January 2026 $395 calls on Microsoft and short January 2026 $405 calls on Microsoft (this bears monitoring)
The Motley Fool has a disclosure policy (something worth watching), in today's market environment.
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