Wall Street strategists remain broadly constructive on US stocks heading into 2027, with tech and communication services among the sectors expected to deliver the strongest earnings growth.
Against that backdrop, investors looking to tilt their portfolios toward areas benefiting from artificial intelligence, cloud computing, digital advertising, and next-generation communications may find two Vanguard sector ETFs particularly compelling.
Both funds offer targeted exposure to industries that have been at the center of the market’s biggest secular growth themes while maintaining Vanguard’s trademark low-cost structure.
Vanguard Information Technology ETF (VGT)
The Vanguard Information Technology ETF gives investors concentrated exposure to the US tech sector through a portfolio of more than 300 stocks and an expense ratio of just 0.09%.
The fund tracks an MSCI technology benchmark and spans software, hardware, IT services, and semiconductor companies.
As of late 2026, Nvidia, Apple, Microsoft, Micron Technology, and Broadcom rank among its largest positions, reflecting the market’s ongoing focus on artificial intelligence (AI) infrastructure and advanced computing.
What makes VGT particularly interesting heading into 2027 is its heavy exposure to companies powering the AI ecosystem.
Nvidia remains a dominant supplier of AI accelerators, while Microsoft continues expanding AI services across its cloud and productivity platforms.
Broadcom and Micron have also emerged as key beneficiaries of rising demand for networking and memory solutions tied to data centers.
The trade-off, however, is concentration.
The fund’s largest holdings account for a substantial share of assets, meaning performance can be heavily influenced by a handful of mega-cap names.
For investors who believe AI spending remains in the early stages rather than nearing a peak, that concentration may be a feature rather than a flaw.
Still, VGT is best viewed as a tactical growth allocation rather than a complete equity portfolio on its own.
Vanguard Communication Services ETF (VOX)
The Vanguard Communication Services ETF (VOX) offers exposure to 111 US communication-services companies and also carries a low 0.09% expense ratio.
The fund tracks an MSCI communication-services index that includes social media platforms, internet advertising leaders, telecom operators, and entertainment companies.
Meta Platforms and Alphabet are by far the largest holdings, with other notable positions including Walt Disney, Verizon Communications, and AT&T.
While communications services have not matched technology’s long-term returns, the sector’s outlook has improved as AI reshapes digital advertising, content recommendations, and consumer engagement.
Meta and Alphabet are increasingly integrating AI across their advertising and search ecosystems, creating new monetization opportunities while enhancing operating efficiency.
VOX also offers a broader mix of growth and defensive characteristics than pure technology funds.
Telecom companies provide recurring cash flows, while media and internet platforms offer exposure to evolving consumer behavior and digital transformation trends.
The primary drawback is that the fund is similarly top-heavy, with Meta and Alphabet representing an outsized share of assets.
For investors seeking a way to capitalize on AI beyond semiconductor stocks, VOX provides access to companies that are monetizing the technology at the application layer rather than supplying the hardware behind it.
AI disclosure: AI tools assisted with research and drafting of this piece. An Invezz editor reviewed the facts, sources and wording before publication. Any opinions or analysis are Invezz’s, not those of an automated system.
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