VGT has delivered roughly a 25% CAGR over the past decade, which is extraordinary.
It makes me question the case for owning individual stocks like Amazon or Alphabet.
When you buy one of those companies, you’re taking significantly more company-specific risk while effectively hoping it can compound at 20–25%+ for a decade.
But if a diversified ETF like VGT can deliver something close to that, with far less single-stock risk, why take the additional risk?
Obviously, VGT’s past decade may not be repeatable. But if you believe tech will continue to dominate, is the potential extra return from picking individual winners really worth the additional concentration risk?