Top 2 Vanguard Sector Index Funds to Invest in Before 2026, as Recommended by Wall Street
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Dec 09 2025
0mins
Should l Buy FDS?
Source: NASDAQ.COM
Investment Outlook: Wall Street analysts predict the highest upside in the information technology sector (21%) and materials sector (18%) for the upcoming year, with technology having outperformed the market significantly over the last decade.
Vanguard ETFs: The Vanguard Information Technology ETF focuses on U.S. tech companies, particularly in semiconductors and software, while the Vanguard Materials ETF targets companies in specialty chemicals and construction materials, both with low expense ratios.
Valuation Concerns: The information technology sector is currently trading at a premium compared to historical averages, but is expected to see substantial earnings growth. In contrast, the materials sector has underperformed historically and faces high valuations with modest growth projections.
Investment Strategy: While the Vanguard Information Technology ETF is recommended for sector-specific exposure, a broader S&P 500 index fund may be a safer choice due to concentration risks in the tech sector and the historical underperformance of the materials sector.
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Analyst Views on FDS
Wall Street analysts forecast FDS stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for FDS is 295.91 USD with a low forecast of 253.00 USD and a high forecast of 326.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
12 Analyst Rating
1 Buy
7 Hold
4 Sell
Hold
Current: 193.760
Low
253.00
Averages
295.91
High
326.00
Current: 193.760
Low
253.00
Averages
295.91
High
326.00
About FDS
FactSet Research Systems Inc. is a global financial digital platform and enterprise solutions provider. The Company's solutions deliver financial data, analytics, and open technology to global clients, including individual users. Its segments include the Americas, EMEA and Asia Pacific. It provides financial data and market intelligence on securities, companies, industries and people to enable its clients to research investment ideas and analyze, monitor and manage their portfolios. It supports various workflows, including investment research, quantitative research, portfolio management and trading, portfolio analytics, wealth management, ESG investing solutions, industry analysis and data solutions. It provides open and flexible technology offerings, including a configurable desktop and mobile platform, and comprehensive data feeds. Its technology also includes LogoIntern, a workflow tool to streamline the task of adding, organizing, and formatting logos into pitch decks.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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