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Unsure Which Tech Stock to Buy? Buy the Haystack With This High-Performing, Low-Cost Fund.

newsfeedback@fool.com (William Dahl)
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⚡ Quantum Brief
Legendary investor John Bogle’s "buy the haystack" strategy advocates diversified tech exposure via low-cost ETFs to capture long-term growth without picking individual stocks. The Vanguard Information Technology ETF (VGT) offers broad tech exposure with 320 holdings, including Nvidia (17.5%), Apple (14.9%), and Microsoft (12.2%), for just 0.09% annual fees. Since 2004, VGT has delivered 13.96% annual returns, turning $10,000 into $177,236, outperforming most active stock-picking strategies. Tech volatility—like Microsoft’s 10% drop despite 60% profit growth—highlights the unpredictability of single stocks, reinforcing diversification’s value. Historical data shows rare outliers (e.g., Nvidia’s 40,630% rise) outweigh losers, making index funds a smarter bet for long-term tech investors.
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By William Dahl – Feb 11, 2026 at 3:55AM ESTKey PointsFinding the needle in the haystack is tough. This "buy the haystack" strategy exposes investors to the tech sector's biggest winners.Losers will be present too, but history shows that extreme winners overwhelm them over time.These 10 Stocks Could Mint the Next Wave of Millionaires ›NYSEMKT: VGTVanguard Information Technology ETFToday's Changeangle-down(-0.43%) $3.22Current Price$748.25Price as of February 10, 2026 at 4:00 PM ETIn a market where tech giants crash while reporting a 60% surge in profits, this might be the most foolproof strategy to play tech today.I wouldn't blame anyone for being confused by the tech sector's recent whipsaw movements. From shares of Microsoft cratering 10% on the same day that it reports a 60% jump in year-over-year profits, to shares of Apple falling despite the company beating analysts' expectations, the outlook for tech stocks feels especially murky today. One solution, in the words of legendary investor John Bogle, would be to "buy the haystack" rather than trying to just find the needle.

The Vanguard Group founder, whose teachings on the advantages of low-cost index funds created legions of fans, preached simplicity and diversification in capturing the market's long-term upside. Image source: Getty Images. It may seem counterintuitive, but casting a wide net and having exposure to hundreds of companies can position you for tremendous returns. After all, the S&P 500 index -- which tracks the performance of America's 500 largest public companies -- has returned 667% so far this century. This approach will expose investors to plenty of losers, of course. But while the farthest that a stock can fall is 100%, others go on to return hundreds of thousands of percent or more. It's very rare, but that's where buying the haystack comes in. Anyone buying the S&P 500 in November 2001 would have gained exposure to Nvidia's 40,630% rise (ironically, it joined the index back then by replacing Enron). Data by YCharts. Of course, the S&P 500 contains companies across every sector. For investors seeking exposure to technology, a fund to consider is the Vanguard Information Technology ETF (VGT 0.43%). Buy the haystack for just 0.09% per year in fees The Vanguard Information Technology ETF offers broad exposure to the information technology sector, with some of its biggest holdings including Nvidia with 17.5% of funds invested, Apple with 14.89% of funds invested, and Microsoft with 12.19% of funds invested. ExpandNYSEMKT: VGTVanguard Information Technology ETFToday's Change(-0.43%) $-3.22Current Price$748.25Key Data PointsDay's Range$747.76 - $755.9552wk Range$451.00 - $806.99Volume13 Despite these sizable positions, the fund counts 320 information technology stocks among its holdings. For this broad exposure, it charges an expense ratio of just 0.09%, meaning it takes $9 in fees annually for every $10,000 invested. For context, the average index equity ETF expense ratio 0.15% in 2023. For long-term shareholders, this arrangement has paid off. The fund's average annual return of 13.96% since its 2004 inception would have turned every $10,000 invested into $177,236. For investors who value simplicity, diversification, low fees, and the prospect of powerful long-term upside as the ongoing tech boom plays out, this fund is a buy.Read NextFeb 1, 2026 •By Anthony Di Pizio1 Unstoppable Vanguard ETF That Could Crush the S&P 500 (Again) in 2026Jan 31, 2026 •By Stefon WaltersInterested in AI Stocks? Here's Why One Popular Vanguard Tech ETF Might Not Be a Good Choice.Jan 29, 2026 •By James Brumley1 Tech ETF Could Turn Your Side Hustle Money Into $500,000Jan 13, 2026 •By Stefon WaltersWant to Invest in AI Stocks in 2026? Here's Why This Popular Tech ETF Might Not Be a Good ChoiceDec 28, 2025 •By Anthony Di PizioPrediction: This Unstoppable Vanguard ETF Will Crush the S&P 500 Again in 2026Dec 7, 2025 •By David Jagielski, CPAHere's How You Can Turn $40,000 Into $1 Million by RetirementStocks MentionedVanguard Information Technology ETFNYSEMKT: VGT$748.25 (0.43%) $3.22*Average returns of all recommendations since inception. Cost basis and return based on previous market day close.

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