ETF Holdings Show Overlap and Sector Differences Between VOO and VGT
What happened
Reports detail the stock composition of major ETFs, noting that many funds hold similar stocks. The Vanguard S&P 500 ETF (VOO) and the Vanguard Morningstar Total Stock Market ETF (VTI) have nearly identical top 10 holdings, differing only in the 10th position, where Eli Lilly and Company is held in VOO instead of JPMorgan Chase. Furthermore, the Vanguard Information Technology ETF (VGT) focuses on traditional "computer" or "electronics" companies, unlike some other tech names like Amazon, which is classified as a consumer cyclical stock.
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Why it matters
The findings highlight the potential for concentration risk within the S&P 500, as many ETFs tend to hold the same major technology stocks. The differences in ETF construction, such as VGT's focus on traditional electronics, provide distinct investment profiles compared to broader market funds.
Pluang has commented on the concentration risk within the VOO fund due to major holdings of companies like Microsoft, Meta, Amazon, Tesla, and Berkshire Hathaway.
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Who's involved
- VOOVanguard S&P 500 ETF, a major US-focused equity ETF
- VGTVanguard Information Technology ETF, a competing US-focused equity ETF
- Eli Lilly and CompanyMajor component holding within the VOO ETF
- VanguardThe asset manager responsible for creating and operating the VOO ETF
Possible ripples
Who this could reach next, traced step by step from the reporting. Possibilities worth considering, not forecasts.- Investor concern over tech concentration may shift capital toward InvescoInvestor concern over tech concentration may shift capital toward competing ETF providersPossible
- Concentration risk discussion may affect Vanguard's fund strategyConcentration risk discussion may prompt Vanguard to manage investor expectations for VOO and VGTPossible
- Concentration risk in major ETFs may affect Microsoft's valuationConcentration risk in major ETFs could pressure Microsoft's valuationPossible
Keep exploring
Part of
Pluang comments on the concentration risk within the VOO fund due to major holdings of companies like Microsoft, Meta, Amazon, Tesla, and Berkshire Hathaway.Also in this story
- Tesla's poor performance drags down MAGS fund.
- BlackRock advises investors to look beyond big tech names as AI proves to be a major market driver.
- Berkshire Hathaway, Meta, Amazon, Tesla, and Microsoft are included in SPY's holdings.
- Amazon and Tesla contribute to the growth of the consumer discretionary sector.
The entities involved
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VOO
commercial name of the Belgian cable company
Nothing else this week.
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VGT
company in Estonia
Nothing else this week.
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Eli Lilly and Company
American pharmaceutical company
Related events
- Nvidia is a top holding in VOO, which also holds Apple Inc. as a major position. Warren Buffett advises investing in S&P 500 ETFs, noting Eli Lilly as a key non-tech giant.
- Nvidia, Eli Lilly, and Booking Holdings are high-growth stocks attracting investor attention, with Eli Lilly being specifically compared to Booking Holdings' stock split.
- ExxonMobil, Berkshire Hathaway, and Eli Lilly are top holdings in the Avantis ETF.
- QQQ and VOO are found to hold significant stakes in Meta, based on recent financial disclosures.
- Analysis compares Vanguard's VUG and Invesco's QQQM, noting VUG's lower expense ratio and QQQM's lack of Eli Lilly exposure.