The current PE ratio for VGT (Vanguard Information Technology ETF) is 46.02. In my twenty year familiarity with this fund I can't recall it being this high. I understand the top ten stocks in the fund account for over 50% of its assets but it just seems like there has to be "Pop" somewhere or an extended flatline that reverts it back to the mean.
We only hold a small amount of the etf; about 4% of our equities. Can someone explain how a fund this expensive can have an optimistic future. When earnings start to accelerate which might lower the PE ratio?
I'm asking trying to grasp a better understanding of the fundamentals of PE in a situation like this. Not from a market timing perspective.
We only hold a small amount of the etf; about 4% of our equities. Can someone explain how a fund this expensive can have an optimistic future. When earnings start to accelerate which might lower the PE ratio?
I'm asking trying to grasp a better understanding of the fundamentals of PE in a situation like this. Not from a market timing perspective.
Statistics: Posted by HuckFinn — Wed Nov 13, 2024 8:41 pm — Replies 3 — Views 288