3 Popular ETFs to Consider Trading in September

About half of the ETF’s portfolio is comprised of stocks in the information technology sector, with an additional 15% allocated to the communication services sector. As of September 3, its largest technology holdings include Apple, at 9.2% of the portfolio, Microsoft at 8.2%, Nvidia at 7.2%, and Broadcom at 4.9%.

Key points

1. For the first time in months, there is an increase in stock market volatility.
2. The VanEck Semiconductor ETF has outperformed benchmark indices for years.
3. Vanguard High Dividend Yield Index ETF is a defensive ETF that can add diversification to your portfolio.
4. 10 Stocks We Like Better Than Vanguard S&P 500 ETF

Vanguard Information Technology ETF Fund

Another great technology-focused ETF to consider trading is the Vanguard Information Technology ETF (NYSEMKT: VGT ). This ETF tracks the performance of the MSCI US Investable Market Information Technology 25/50 Index.

Demand for artificial intelligence (AI) remains very high

Organizations are rushing to implement AI tools as quickly as possible. That’s creating a huge demand for chips that serve as AI’s “brains.” Almost all of them are semiconductor manufacturers, represented by VanEck’s fund. AI chip manufacturing is notoriously difficult. Few companies have the technological know-how, advanced equipment, or facilities required to manufacture advanced semiconductors. In other words, the barriers to entry in the AI ​​chip industry are incredibly high.

Regardless of which companies win, the VanEck fund should capture the growth of the winners. Combine that with the fund’s very impressive past performance—it has generated a compound annual growth rate (CAGR) of almost 25% over the past 10 years—and it becomes clear why the VanEck fund is worth considering on a downturn.

Invesco QQQ ETF

The Invesco QQQ ETF offers investors exposure to the top 100 non-financial companies listed on the Nasdaq, with a focus on the technology and growth sectors. Its holdings include leading innovators such as Apple, Microsoft and Nvidia, providing high potential for capital appreciation. QQQ is known for its historical outperformance compared to broader market indices, making it an attractive choice for those seeking growth opportunities in cutting-edge industries such as technology and communications.

About half of the ETF’s portfolio is invested in the information technology sector, with an additional 15% allocated to the communications services sector. As of September 3, its top technology holdings include Apple (9.2%), Microsoft (8.2%), Nvidia (7.2%), and Broadcom (4.9%).

In the communication services sector, Alphabet has a 4.9% stake, followed by Meta Platforms with 4.8%. Amazon and Tesla are classified in the consumer discretionary sector and make up 4.9% and 2.7% of the ETF’s portfolio, respectively.

Vanguard S&P 500 ETF

Vanguard S&P 500 ETF (VOO) is a popular exchange-traded fund that aims to replicate the performance of the S&P 500 Index, which includes 500 of the largest U.S. companies. With a diversified portfolio, it covers sectors such as information technology, healthcare, financials, and consumer discretionary. According to the latest data, about half of the fund is invested in information technology stocks, with major holdings including Apple, Microsoft, and Nvidia.

The ETF also includes key companies from other sectors, such as Amazon and Tesla in Consumer Discretionary and Alphabet and Meta Platforms in Communication Services. VOO is known for its low expense ratio and broad market exposure, making it a popular choice for investors looking for long-term growth and stability. Tracking the S&P 500, it offers exposure to the entire U.S. economy, providing a balanced investment option for both new and experienced investors.

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When considering trading and predicting the prices of shares, indices, currencies (forex) and commodities, you should remember that trading CFDs carries a significant degree of risk and can result in the loss of your capital.

Past performance is not a guide to future results. This information is provided for informational purposes only and should not be construed as investment advice.