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VGT and VOO pair concentrated tech exposure with broad S&P 500 diversification, capturing AI upside while limiting single-stock earnings risk.
VGT’s top holdings include Nvidia, Microsoft, Apple, and Broadcom, all of which report earnings in late July, making the fund a direct AI earnings play.
VOO’s sector mix is 39% tech, 11% financials, and 8% healthcare, which provides a built-in hedge if technology earnings disappoint this season.
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Second-quarter earnings season is set to kick off, with investors looking for confirmation that artificial intelligence spending can continue to translate into strong earnings. Rather than trying to predict which individual company will deliver the best results, I’d select two ETFs positioned to benefit from both the AI narrative and broader U.S. economic growth. These two funds are the Vanguard Information Technology ETF (VGT) and the Vanguard S&P 500 ETF (VOO).
While individual earnings reports often generate significant volatility, investors do not necessarily need to guess which company will deliver the biggest surprise. Instead, ETFs offer a way to participate in potential upside while reducing company-specific risk.
Vanguard Information Technology ETF (VGT)
Launched in January 2004, VGT has long served as a way for investors to increase technology exposure in their portfolios. Charging an expense ratio of just 0.09%, the fund spreads its current assets under management of $146.58 billion across 328 holdings, providing a 25.21% year-to-date return.
In the current bull market environment, technology remains the main driver of growth, and in my view this momentum will carry into the next earnings season.
VGT provides concentrated exposure to many of the top names expected to drive market sentiment. Its largest holdings include Nvidia (NVDA), Microsoft (MSFT), Apple (AAPL), and Broadcom (AVGO), all companies at the center of the AI trade.
Top holdings such as Microsoft and Apple are expected to release earnings near the end of the month (July 28th and July 30th, respectively).
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With fears surrounding excessive capex, markets will be closely monitoring spending plans, demand for cloud computing, and the effective monetization of AI projects. If technology companies once again exceed analysts’ expectations, VGT is well positioned to benefit thanks to its concentration in some of the sector’s largest winners.
