Buy This Unstoppable ETF at a Discount

the Nasdak (Nasdaqindex: ^IXIC) It has officially entered a correction area, decreased by about 13 % since mid -February, to this writing. On Monday, it represents the worst decrease in the index for one day since 2022, as it decreased by 4 %-which provides concerns about the bear or stagnation market on the horizon.

The future is still not certain for the market, and no one knows whether the stock prices will apart or go to a deeper shrinkage. But in the long run, it is almost content to recover the market.

Despite the concerns of many investors, it can now be a great opportunity to “buy decline” and invest while prices are lower, and you may determine yourself to make huge gains as soon as the market is eventually bounced. If you are looking for investment funds circulating in the field of technology to reduce, then The forefront of information technology ETF (Nysemkt: vgt) It can be great buying now.

Vanguard Information Technology ETF has 316 stocks of all corners of the technology sector. With heavy nasdaq in the correction area, many stocks inside ETF have also been in recent weeks.

The fund itself has decreased by about 11 % since the beginning of the year, while the three best holdings of it – appleand NafidiaAnd Microsoft – decreased by about 9 %, 20 %, and 10 %, respectively, in that period.

Historically, though, this ETF has a strong history in collecting rough spots. Since its inception in 2004, he survived the great recession, crashed Covid-19, and the recession has occurred throughout 2022-while earning the total returns of approximately 1000 %.

VGT data by ycharts

In other words, if you have invested $ 10,000 in this ETF in 2004 and simply stopped in the market, you will have about $ 108,000 by today.

Of course, the previous performance does not expect future returns. There are no guarantees that this ETF will continue to prosper over the coming years or that all shares inside the box will recover them. But by investing in ETF, you will get hundreds of shares at the same time. You can diversify your wallet better and reduce your risk if the market takes a more severe turn.

Another feature of this box is a mixture of blue chips with smaller companies. Apple, NVIDIA and Microsoft together make up slightly more than 44 % of the entire ETF. Other 56 %, almost, consist of 313 remaining stocks.

Repeating a large part of the fund towards a handful of shares can increase the risks, but the tyrant companies are likely to exceed difficult economic times. While some smaller companies may struggle during stagnation in the market, they also have more room for explosive growth when prices begin to receive again.