The article argues that Vanguard's VOO, VUG and VGT overlap heavily because the same mega-cap tech companies sit near the top of each. Over ten years VGT returned 799.70%, VUG 429% and VOO 324.46%, but the gap reflects one factor, mega-cap tech, held at different concentration levels. VOO has 38.0% of net assets in information technology and VUG 65.9% in technology, while VGT tracks a technology-only index. In the past week VOO fell 1.4%, VUG 3% and VGT 5%, showing that the most concentrated fund dropped the most. The author advises checking each fund's top ten holdings and converting fund weights into portfolio weights to measure real exposure.
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