Vanguard Tech ETF Rides Wave of Earnings Growth

The recent volatility in the stock market has been a wild ride for investors. Just four days after hitting a correction of 10.1% from its all-time high, the Nasdaq Composite recovered an astonishing 8.8%, and the S&P 500 closed at an all-time high.

During this time, the Vanguard Information Technology ETF (VGT) gained 11%. This is largely due to the combined weighting of Nvidia, Microsoft, Micron, and Broadcom in the fund.

Investors concerned about overbought tech stocks may be surprised to learn that earnings growth remains a powerful force in investing. With companies like Microsoft and Apple growing their earnings at record rates, patient investors could still reap big gains from these tech leaders.