The COVID-19 pandemic has inspired shifts in the technology space. We have seen the rise of companies like Zoom Video (NASDAQ:ZM) as tens of millions of workers have been forced to make do at home. The e-commerce revolution has accelerated, boosting stocks like Amazon (NASDAQ:AMZN) and Shopify (TSX:SHOP).
Moreover, a new era of surveillance and contact tracing may generate new revenue streams for tech giants like Alphabet and Facebook.
For those looking for broad exposure to the tech sector there is the Vanguard Information Technology ETF (NYSE:VGT). This ETF seeks to track the performance of a benchmark index that measures the investment return of stocks in the information technology sector.
Shares of the ETF have climbed 4.5% in 2020 as of late afternoon trading on May 22. It surged 48% in 2019. The growth of cloud-based services will continue to drive a positive performance for this sector in the 2020s.
Systems Software makes up the largest equity sector in the fund, followed by Technology Hardware, Storage & Periphera, and Data Processing & Outsourced Services. Some of the top holdings in the fund include Apple (NASDAQ:AAPL), Microsoft (NASDAQ:MSFT), and Visa (NYSE:V).
The 10 largest holdings in the fund make up nearly 60% of total net assets.
Investors who want exposure to a broad array of top technology stocks should consider this ETF in late May. These companies have plenty of room to run and have managed to flourish in the face of the COVID-19 pandemic.
