Daniel Foelber, The Motley FoolSat, Jul 5, 2025, 11:45 AM 6 min readIn This Article:The technology and communications sectors contain five key growth stocks.Industrials and financials offer a balance of growth potential and value.Sector ETFs can help investors zoom in on specific themes and end markets.10 stocks we like better than Vanguard Information Technology ETF ›Investment management firm Vanguard offers 11 low-cost exchange-traded funds (ETFs) that mirror the performance of each stock market sector.Invest in GoldFour of those sector ETFs closed the first half of 2025 at or just under all-time highs. The Vanguard S&P 500 ETF -- which tracks the index -- also hit an all-time high on June 30.Here's why you may want to double down on the Vanguard Information Technology ETF (NYSEMKT: VGT), Vanguard Communications Services ETF (NYSEMKT: VOX), Vanguard Industrials ETF (NYSEMKT: VIS), and the Vanguard Financials ETF (NYSEMKT: VFH), as well as reasons to be cautious about diving into each sector ETF.Image source: Getty Images.The Vanguard Tech ETF is heavily weighted in Nvidia, Microsoft, and Apple. Other top holdings include chip and network provider Broadcom, software giants Salesforce and Palantir Technologies, and well-known legacy tech companies like Oracle, Cisco Systems, and International Business Machines.The tech sector has the highest weighting in the S&P 500 and has driven a significant amount of S&P 500 gains over the last decade. However, that outperformance has stretched the valuations of many tech stocks.VOO data by YChartsTech companies have historically grown into their valuations over time. So investors who want exposure to top growth stocks and have a long-term time horizon may still want to invest in the Vanguard Tech ETF. However, investors who already have sizable positions in megacap tech stocks should be mindful that the ETF will provide little diversification.Communications is one of the most dynamic market sectors because it offers a blend of legacy telecommunications and media companies, social media giants like Alphabet and Meta Platforms, as well as newer media companies like Netflix.Similar to the Vanguard Tech ETF, the Vanguard Communications Services ETF is very top-heavy -- with a whopping 47.6% concentration in Alphabet, Meta, and Netflix. So again, if you aren't looking to add to existing positions in these names, this ETF may be a bad fit. But it could be a good long-term buy if you like the ETF's top holdings and don't mind the concentration.It's also worth mentioning that communications is much cheaper than tech from a valuation standpoint. The Vanguard Communications ETF sports a mere 20.8 price-to-earnings (P/E ratio) compared to 38.8 for the tech ETF. Again, this is mainly because many tech stocks like Nvidia and Microsoft have seen their valuations climb as their stock prices have outpaced earnings growth, while Meta (and especially Alphabet) have significantly lower valuations.Terms and Privacy PolicyPrivacy & Cookie SettingsMore InfoS&P 5006,279.35 +51.93 (+0.83%)Dow 3044,828.53 +344.11 (+0.77%)Nasdaq20,601.10 +207.97 (+1.02%)Russell 20002,249.04 +22.66 (+1.02%)VIX17.48 +1.10 (+6.72%)Gold3,346.50 +3.60 (+0.11%)PortfolioSign in to access your portfolioSign inTop gainersBMNR Bitmine Immersion Technologies, Inc. 135.00 +76.50 (+130.77%)RUN Sunrun Inc. 10.50 +1.51 (+16.80%)TRIP Tripadvisor, Inc. 17.50 +2.51 (+16.74%)DDOG Datadog, Inc. 155.15 +20.14 (+14.92%)SYM Symbotic Inc. 47.91 +5.71 (+13.53%)Top losersLEN Lennar Corporation 110.12 -4.69 (-4.09%)LEN-B Lennar Corporation 105.62 -4.37 (-3.97%)ESGRP Enstar Group Limited 19.45 -0.79 (-3.91%)HOOD Robinhood Markets, Inc. 94.40 -3.58 (-3.65%)BG Bunge Global SA 78.44 -2.95 (-3.62%)Most activeLCID Lucid Group, Inc. 2.1600 +0.1100 (+5.37%)NVDA NVIDIA Corporation 159.34 +2.09 (+1.33%)INTC Intel Corporation 22.49 +0.61 (+2.79%)F Ford Motor Company 11.81 +0.04 (+0.34%)TSLA Tesla, Inc. 315.35 -0.30 (-0.10%)Earnings eventsTrending tickersXRP-USD XRP USD 2.27 +0.04 (+1.86%)TSLA Tesla, Inc. 315.35 -0.30 (-0.10%)LKNCY Luckin Coffee Inc. 38.49 +0.50 (+1.32%)STZ Constellation Brands, Inc. 172.32 -1.55 (-0.89%)BONK-USD Bonk USD 0.00 +0.00 (+15.34%)Top economic eventsPowered by Money.com - Yahoo may earn commission from the links above.