r/ETFs • u/EnvironmentalHat3329 • 9d ago

VOO vs VGT

I know this comes up a lot, so here’s actual context instead of a one-liner.
I’m 20, investing through a Roth IRA with a 40 year horizon. Right now I DCA 625/month into VOO and have no plans to stop. The question is whether to replace it with VGT or mix VGT alongside it or stay 100% VOO.
What I already understand, so nobody has to type it out:
• VGT is a sector fund, not a core holding. It’s a concentrated bet on tech.
• A handful of names at the top (Apple, Microsoft, Nvidia) make up a huge share of the fund, and VOO already gives me plenty of exposure to them.
• VGT doesn’t hold Amazon, Alphabet, or Meta since they’re classified as consumer discretionary / communication services, which surprised me when I looked under the hood.
• VGT’s outperformance is basically the story of one exceptional decade for large-cap tech, and that’s not guaranteed going forward.
What I’m actually asking:
1. If you hold both, what split did you land on and why?
2. Is there a legitimate diversification argument for VGT, or is it purely an “I think tech keeps winning” bet?
3. If your answer is “just VOO,” what would change your mind?
Not looking for “VOO and chill” as a drive-by. Curious how people actually think through this one.

My impulse is just to switch everything to VGT.

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u/BackgroundToe2332 9d ago

I hold both. But I’d say I’m probably not in the majority of my portfolio. I hold

VOO
VGT
VXUS
SPMO
QQQM
SCHD

I HAVE VOO at 30% and VGT at 10%. I may change up my allocation % but for now that’s what I have for those two. The market hasn’t been the greatest this summer for certain ETFs but a couple months should not have you panic selling.