VGT Canadian equivalent
When delving into the realm of technology-focused investments, the Vanguard Information Technology ETF stands out as a noteworthy player. VGT represents an exchange-traded fund (ETF) with a keen focus on the information technology sector. An equivalent to VGT in the Canadian ETF market would be an index ETF, such as XQQ or ZQQ, both tracking the Nasdaq100. Additionally, the TEC fund issued by TD emerges as a compelling alternative.
List of VGT Canadian equivalent
| SYMBOL | NAME | FUND INCEPTION DATE |
|---|---|---|
| XQQ.TO | iShares NASDAQ 100 Index ETF (CAD-Hedged) | May 2, 2011 |
| ZQQ.TO | BMO Nasdaq 100 Equity Hedged to CAD Index ETF | Jan 18, 2010 |
| TEC.TO | TD Global Technology Leaders Index ETF | May 6, 2019 |
| HXQ.TO | Horizons NASDAQ-100 Index ETF | Apr 18, 2016 |
| XIT.TO | iShares S&P/TSX Capped Information Technology Index ETF | Mar 18, 2001 |
| HXQ-U.TO | Horizons NASDAQ-100 Index ETF | Apr 18, 2016 |
| ZNQ.TO | BMO NASDAQ 100 Equity Index ETF | Feb 10, 2021 |
VGT Vanguard Information Technology ETF Investment objective
Aims to monitor the progress of a benchmark index gauging the investment yield of stocks within the information technology sector. Operated in a passive manner, employing a full-replication approach when feasible and opting for a sampling strategy when regulatory constraints come into play. Encompasses stocks of companies involved in the electronics and computer industries, as well as those engaged in manufacturing products rooted in cutting-edge applied science.
The Fund utilizes an indexing investment strategy crafted to mirror the performance of the MSCI US Investable Market Index (IMI)/Information Technology 25/50. This index comprises stocks from large, mid-size, and small U.S. companies operating in the information technology sector, categorized under the Global Industry Classification Standard (GICS). The GICS information technology sector includes companies providing software and IT services, along with manufacturers and distributors of technology hardware and equipment, such as communications devices, cell phones, computers and peripherals, electronic equipment and related instruments, and semiconductors.
| Fundamental | VGT |
|---|---|
| Number of stocks | 318 |
| Median market cap | $283.2 B |
| Earnings growth rate | 25.3% |
| Short-term reserves | — |
| P/E ratio | 30.2x |
| P/B ratio | 7.0x |
| Turnover rate (Fiscal Year-end 08/31/2023) | 15.4% |
| Return on equity | 43.1% |
| Foreign holdings | 0.0% |
| Fund total net assets as of 10/31/2023 | $57.1 B |
| Share class total net assets | $48.9 B |
XQQ – Ishares Nasdaq 100 Index
iShares NASDAQ 100 Index ETF (CAD-Hedged) is an exchange traded fund that seeks to track the performance of the NASDAQ-100 Currency Hedged CAD Index.
Hedged vs Unhedged funds ETF Canada – What’s better?
XQQ Portfolio
| Name | % Weight |
|---|---|
| Microsoft Corp | 13.38% |
| Apple Inc | 12.87% |
| Amazon.com Inc | 6.69% |
| NVIDIA Corp | 5.33% |
| Alphabet Inc | 4.12% |
| Alphabet Inc | 4.06% |
| Meta Platforms Inc | 3.96% |
| Tesla Inc | 3.17% |
ZQQ – BMO Nasdaq 100 Hedged To CAD Index
BMO Nasdaq 100 Hedged To CAD is an exchange traded fund that seeks to track the performance of the NASDAQ-100 Currency Hedged CAD Index.
| Name | % Weight |
|---|---|
| Microsoft Corp | 12.54% |
| Apple Inc | 12.31% |
| Amazon.com Inc | 6.21% |
| NVIDIA Corp | 5.22% |
| Tesla Inc | 3.85% |
| Alphabet Inc | 3.70% |
| Alphabet Inc | 3.64% |
| Meta Platforms Inc | 3.59% |
| Broadcom Inc | 2.03% |
TEC – TD Global Technology Leaders ETF
The objective of the TEC ETF in Canada is to provide investors with exposure to the performance of the technology sector. By investing in the TEC ETF, investors have the opportunity to participate in the growth and potential returns of technology companies. These companies operate in various areas within the technology sector, including software, hardware, internet, telecommunications, and other related industries.
The TEC ETF seeks to offer investors exposure to both established companies and emerging players in the sector.
| Name | % Weight |
|---|---|
| Apple Inc | 16.08% |
| Microsoft Corp | 13.46% |
| Amazon.com Inc | 5.60% |
| NVIDIA Corp | 3.90% |
| Alphabet Inc | 3.81% |
| Alphabet Inc | 3.39% |
| Meta Platforms Inc | 3.22% |
| Name | % Weight |
|---|---|
| Meta Platforms Inc | 4.54% |
| Microsoft Corp | 4.34% |
| Micron Technology Inc | 4.24% |
| Apple Inc | 4.13% |
| NVIDIA Corp | 4.12% |
| Intel Corp | 4.10% |
| Cisco Systems Inc | 4.08% |
| Alphabet Inc | 4.08% |
XIT – iShares S&P/TSX Capped Info Tech ETF
XIT seeks long-term capital growth by replicating the performance of the S&P/TSX Capped Information Technology Index, net of expenses. The index tracked includes exclusively Canadian companies. In total, this ETF invest in 24 Canadian technology stocks. There is a 25% cap put in place to avoid over exposure to a particular stock.
Top Tech ETFs: Full review of IShares XIT 2023
XIT Portfolio
| Name | % Weight |
|---|---|
| Shopify Inc | 25.16% |
| Constellation Software Inc | 24.54% |
| CGI Inc | 20.29% |
| Open Text Corp | 10.17% |
| The Descartes Systems Group Inc | 6.22% |
| Kinaxis Inc | 3.55% |
| BlackBerry Ltd | 2.51% |
| Lightspeed Commerce Inc | 1.85% |
XIT Sector allocation
| Sector | Weight % |
|---|---|
| Application Software | 49.09 |
| Internet Services & Infrastructure | 25.34 |
| IT Consulting & Other Services | 13.60 |
| Data Processing & Outsourced Services | 6.01 |
| Systems Software | 4.39 |
| Communications Equip. | 0.81 |
| Electronic Manufacturing Sces | 0.71 |
| Cash and/or Derivatives | 0.03 |
ZNQ – BMO NASDAQ 100 Equity ETF
BMO Nasdaq 100 Equity Index ETF has been designed to replicate the performance of a NASDAQ listed companies index.
Hedged vs Unhedged funds ETF Canada – What’s better?
| Name | % Weight |
|---|---|
| Microsoft Corp | 12.57% |
| Apple Inc | 12.35% |
| Amazon.com Inc | 6.23% |
| NVIDIA Corp | 5.24% |
| Tesla Inc | 3.86% |
| Alphabet Inc | 3.71% |
| Alphabet Inc | 3.65% |
| Meta Platforms Inc | 3.60% |
| Broadcom Inc | 2.04% |
