Want Growth but Worry About Too Much Tech? Then Load Up on This Top Vanguard ETF
Key Points in This Article: Vanguard Mega Cap Growth ETF’s (MGK) consumer discretionary segment diversifies beyond tech, capturing innovative companies driving growth in evolving consumer trends. MGK offers access to consumer-focused businesses, underrepresented in broader market ETFs, enhancing portfolio growth potential. Nvidia made early investors rich, but there is a new class of ‘Next Nvidia Stocks’ that could be even better. Click here to learn more. The stock market’s plunge in April was brought on by fear, even panic, of being caught in a downward spiral. Savvy investors, however, knew to hang tight and ensure they had some powder dry to capitalize on the opportunity. The rewards were substantial as the major indexes recently hit new record highs. However, what seasoned investors understand is that the most significant wealth-building gains come not from short-term market timing but rather from holding high-quality assets over the long term, allowing compounding to work its magic. Even with markets at new peaks, there are still compelling opportunities in growth-oriented investments, particularly in the technology-heavy Vanguard Mega Cap Growth ETF (NYSEARCA:MGK). With a low expense ratio of 0.07% or just $7 per $10,000 invested, MGK offers exposure to some of the largest and most dynamic growth companies in the U.S., with a strong tilt toward technology. Here’s why MGK remains an attractive option for patient investors, along with considerations for whether it suits your portfolio. The Power of Mega-Cap Leaders Only a decade ago, today’s market leaders like Microsoft (NASDAQ:MSFT) and Nvidia (NASDAQ:NVDA) were were much smaller and less influential than they are now. In 2015, Microsoft was worth just $358 billion while the artificial intelligence chip stock was primarily a gaming graphics processing unit (GPU) maker worth less than $11 billion. Today, these two companies are the richest stocks on the market. Nvidia is now the most valuable company in the world at nearly $3.9 trillion, while Microsoft is worth about $3.7 trillion. In just the past few years, they are responsible for a significant portion of the S&P 500’s growth. In the Vanguard Mega Cap Growth ETF, this pair represents approximately one-quarter of the portfolio, compared to about 13% in a broad S&P 500 ETF like the Vanguard S&P 500 ETF (NYSEARCA:VOO). For investors seeking amplified exposure to these market leaders, MGK offers a targeted way to capture their growth. However, concentration has its nuances. While Microsoft and Nvidia are trading at all-time highs, other high-growth tech leaders like Apple (NASDAQ:AAPL) have lagged. The iPhone maker is down roughly 15% year-to-date. Without this underperformance, MGK’s returns could have been even stronger (Apple is its third-largest holding at 11.6% of the portfolio), highlighting the ETF’s sensitivity to its top holdings. Growth Beyond Tech Titans While MGK’s top holdings drive significant returns, the ETF’s consumer discretionary segment, making up over 20% of the portfolio, offers compelling growth opportunities. This sector includes leading companies like Amazon (NASDAQ:AMZN) and Tesla (NASDAQ:TSLA), which are not only household names but also innovators reshaping consumer behavior and industries. These firms contribute to MGK’s appeal by providing exposure to dynamic, high-growth businesses outside the tech-heavy core. Amazon, a cornerstone of the consumer discretionary allocation, continues to dominate e-commerce while expanding into areas like cloud computing (through AWS, though not counted in MGK’s consumer discretionary weighting) and advertising. Its investments in logistics and AI-driven personalization enhance its ability to capture consumer spending, positioning it for sustained growth. Similarly, Tesla’s leadership in electric vehicles and energy solutions taps into shifting consumer preferences toward sustainability and innovation. Both companies exemplify the sector’s potential to deliver outsized returns, fueled by evolving consumer trends and technological advancements. Beyond these giants, MGK includes other consumer discretionary players like Home Depot (NYSE:HD) and Starbucks (NASDAQ:SBUX), which are adapting to changing market dynamics. Home Depot benefits from steady demand in home improvement, while Starbucks leverages digital ordering and loyalty programs to maintain growth. These companies, though smaller in weighting, add diversification within the sector, balancing the portfolio’s reliance on mega-cap tech. By investing in MGK, you gain access to these consumer-driven innovators, which are underrepresented in broader market ETFs like Vanguard’s S&P 500 ETF, where consumer discretionary makes up only about 10% of the index. A Strategic Fit for Long-Term Investors Despite recent market highs, MGK remains a compelling option for those bullish on mega-cap growth, particularly in tech-driven innovation. The ETF’s low cost, diversified exposure to top-tier companies, and alignment with trends like AI make it a strong candidate for long-term portfolios. For investors wary of over-concentration, an alternative approach is to review MGK’s holdings and selectively invest in individual names to avoid duplicating existing positions. Ultimately, MGK is worth a closer look for investors comfortable with its risks and seeking to capitalize on the enduring growth of mega-cap leaders. By holding quality investments like MGK over time, you position yourself to benefit from the compounding power of the market’s most innovative companies. The post Want Growth but Worry About Too Much Tech? Then Load Up on This Top Vanguard ETF appeared first on 24/7 Wall St..
Read More
Want Growth but Worry About Too Much Tech? Then Load Up on This Top Vanguard ETF
Key Points in This Article: Vanguard Mega Cap Growth ETF’s (MGK) consumer discretionary segment diversifies beyond tech, capturing innovative companies driving growth in evolving consumer trends. MGK offers access to consumer-focused businesses, underrepresented in broader market ETFs, enhancing portfolio growth potential. Nvidia made early investors rich, but there is a new class of ‘Next Nvidia Stocks’ that could be even better. Click here to learn more. The stock market’s plunge in April was brought on by fear, even panic, of being caught in a downward spiral. Savvy investors, however, knew to hang tight and ensure they had some powder dry to capitalize on the opportunity. The rewards were substantial as the major indexes recently hit new record highs. However, what seasoned investors understand is that the most significant wealth-building gains come not from short-term market timing but rather from holding high-quality assets over the long term, allowing compounding to work its magic. Even with markets at new peaks, there are still compelling opportunities in growth-oriented investments, particularly in the technology-heavy Vanguard Mega Cap Growth ETF (NYSEARCA:MGK). With a low expense ratio of 0.07% or just $7 per $10,000 invested, MGK offers exposure to some of the largest and most dynamic growth companies in the U.S., with a strong tilt toward technology. Here’s why MGK remains an attractive option for patient investors, along with considerations for whether it suits your portfolio. The Power of Mega-Cap Leaders Only a decade ago, today’s market leaders like Microsoft (NASDAQ:MSFT) and Nvidia (NASDAQ:NVDA) were were much smaller and less influential than they are now. In 2015, Microsoft was worth just $358 billion while the artificial intelligence chip stock was primarily a gaming graphics processing unit (GPU) maker worth less than $11 billion. Today, these two companies are the richest stocks on the market. Nvidia is now the most valuable company in the world at nearly $3.9 trillion, while Microsoft is worth about $3.7 trillion. In just the past few years, they are responsible for a significant portion of the S&P 500’s growth. In the Vanguard Mega Cap Growth ETF, this pair represents approximately one-quarter of the portfolio, compared to about 13% in a broad S&P 500 ETF like the Vanguard S&P 500 ETF (NYSEARCA:VOO). For investors seeking amplified exposure to these market leaders, MGK offers a targeted way to capture their growth. However, concentration has its nuances. While Microsoft and Nvidia are trading at all-time highs, other high-growth tech leaders like Apple (NASDAQ:AAPL) have lagged. The iPhone maker is down roughly 15% year-to-date. Without this underperformance, MGK’s returns could have been even stronger (Apple is its third-largest holding at 11.6% of the portfolio), highlighting the ETF’s sensitivity to its top holdings. Growth Beyond Tech Titans While MGK’s top holdings drive significant returns, the ETF’s consumer discretionary segment, making up over 20% of the portfolio, offers compelling growth opportunities. This sector includes leading companies like Amazon (NASDAQ:AMZN) and Tesla (NASDAQ:TSLA), which are not only household names but also innovators reshaping consumer behavior and industries. These firms contribute to MGK’s appeal by providing exposure to dynamic, high-growth businesses outside the tech-heavy core. Amazon, a cornerstone of the consumer discretionary allocation, continues to dominate e-commerce while expanding into areas like cloud computing (through AWS, though not counted in MGK’s consumer discretionary weighting) and advertising. Its investments in logistics and AI-driven personalization enhance its ability to capture consumer spending, positioning it for sustained growth. Similarly, Tesla’s leadership in electric vehicles and energy solutions taps into shifting consumer preferences toward sustainability and innovation. Both companies exemplify the sector’s potential to deliver outsized returns, fueled by evolving consumer trends and technological advancements. Beyond these giants, MGK includes other consumer discretionary players like Home Depot (NYSE:HD) and Starbucks (NASDAQ:SBUX), which are adapting to changing market dynamics. Home Depot benefits from steady demand in home improvement, while Starbucks leverages digital ordering and loyalty programs to maintain growth. These companies, though smaller in weighting, add diversification within the sector, balancing the portfolio’s reliance on mega-cap tech. By investing in MGK, you gain access to these consumer-driven innovators, which are underrepresented in broader market ETFs like Vanguard’s S&P 500 ETF, where consumer discretionary makes up only about 10% of the index. A Strategic Fit for Long-Term Investors Despite recent market highs, MGK remains a compelling option for those bullish on mega-cap growth, particularly in tech-driven innovation. The ETF’s low cost, diversified exposure to top-tier companies, and alignment with trends like AI make it a strong candidate for long-term portfolios. For investors wary of over-concentration, an alternative approach is to review MGK’s holdings and selectively invest in individual names to avoid duplicating existing positions. Ultimately, MGK is worth a closer look for investors comfortable with its risks and seeking to capitalize on the enduring growth of mega-cap leaders. By holding quality investments like MGK over time, you position yourself to benefit from the compounding power of the market’s most innovative companies. The post Want Growth but Worry About Too Much Tech? Then Load Up on This Top Vanguard ETF appeared first on 24/7 Wall St..
Read More
'Apple is a growth stock that doesn't grow very much': Strategist
Shay Boloor, Futurum chief market strategist, and Steve Sosnick Chief Strategist at Interactive Brokers join Market Catalysts to the outlook for Meta and Apple as the AI competition heats up. To watch more expert insights and analysis on the latest market action, check out more Market Catalysts here.
Read More
The Apple Comeback Will Be Better Than the Setback
With the S&P 500 and the Nasdaq-100 indexes now sitting at new all-time highs relatively undisturbed, it makes sense to see some of the best companies in the United States economy start to go on a sort of “meltdown” mode for the coming months and quarters. This is exactly where the best opportunity will be for those investors who know what they are looking for.
Read More
Microsoft: Cloud Pointing To Market Cap Convergence With Alphabet
Google Cloud is growing faster than Microsoft Cloud, maintaining a 28% CAGR versus Microsoft's slowing 22% growth. Google's legacy advertising business is nearly twice the size of Microsoft's legacy segment and is growing at the same 10% rate. The market undervalues Google's future potential, especially as its cloud and subscription revenues accelerate and rival Microsoft's scale.
Read More
Remplir sales surge: Orthocell CEO interview
Orthocell Ltd CEO and managing director Paul Anderson earlier this week spoke with Proactive after the company reported record revenue for the June 2025 quarter, citing strong uptake of its flagship Remplir nerve repair product. Highlights The company said quarterly revenue reached A$2.73 million, representing a 22.80 percent increase compared to the previous quarter. Orthocell highlighted that this growth reflected continued adoption across Australia, with more than 206 surgeons now using Remplir in over 166 hospitals. Anderson told investors that the commercial launch in Australia has been a “spectacular” success. The company noted that none of the reported revenue was generated in the United States, where it recently completed its first procedure. Orthocell said it has established a distribution network in the US, comprising 14 distributors and more than 100 representatives across 21 states. The company expects this infrastructure will drive further growth as the product is adopted by additional hospitals and surgeons. Anderson stated that preparations over the past two years have positioned the company to scale internationally. He said, “It leaves us in such a strong position,” adding that the lessons learned in Australia will inform the US commercial rollout. Potential catalysts for investors include increased US revenue contributions, further hospital engagements, and broader clinical use of Remplir. Orthocell also expects rising adoption rates in Australia to continue contributing to revenue momentum over the coming financial year. Apple Inc (NASDAQ:AAPL, ETR:APC) continues to show strength in its Services business, with global App Store revenue estimated to have increased by 12% year-over-year in June, according to Bank of America analysts. The firm maintains its ‘Buy’ rating on Apple and $235 price target, pointing to strong capital returns, leadership in on-device AI, and ongoing revenue diversification within the App Store. Bank of America estimates App Store revenues reached $8.4 billion in fiscal Q3 2025, up 11.5% year-over-year, based on developer-level data from SensorTower. Downloads across iPhone and iPad rose 4.3% year-over-year to 8.6 billion in the quarter, with dollars per download increasing to $0.98, a 6.9% improvement. “For the month of June, App Store revenue increased 12% year-over-year globally, outpacing app store download growth of 3% year-over-year,” analysts noted. Despite regulatory scrutiny and the Epic Games ruling, Bank of America analysts say there's no evidence of a material impact to App Store monetization. “We do not observe any indication of adverse impact on app store revenue,” they wrote, even as trends toward off-app payments become more common. The bank believes investor concerns around the ruling’s severity “appear to be moot.” The report also highlights a notable shift in App Store revenue mix, with gaming losing ground to other categories. While games still generate the largest share of revenue, their portion has dropped from over 50% to 45% in fiscal Q3. “Games remain as the leader of the global app store revenue by category list, though their share has declined,” the analysts wrote. Categories such as Photo & Video, Lifestyle, Books, Education, and Utilities each gained 100 basis points year-over-year, while Productivity jumped 200 basis points, the largest gain of any group. “This mix shift, albeit not as meaningful currently, may signal legacy game developers to diversify into non-games or expand existing in-app purchasing options,” Bank of America wrote. “We believe either scenario in the ensuing years could be a long-term tailwind for Apple’s App Store revenue.” Additionally, the top 10 developers globally now account for nearly a quarter of Apple’s year-to-date App Store revenue, according to the firm’s analysis. This group includes both single-app players like ChatGPT, FUNFLY, and Tinder, as well as diversified developers like Tencent, Google, and TikTok, which maintain broad app portfolios spanning entertainment, utilities, and productivity. Impact of US-Vietnam trade deal Meanwhile, proposed tariffs on goods exported from Vietnam into the US will have a minimal impact on Apple, analysts at UBS believe. While Vietnam has become an increasingly important part of the tech giant’s supply chain diversification strategy, the analysts highlighted that the region still accounts for only a small fraction, roughly 5%, of Apple’s global supply chain footprint. “Given the relatively small physical footprint and focus on ancillary products, a 20% tariff on imports into the US will have a negligible impact on Apple margins in our view,” they wrote. They see the financial impact as a “gross margin rounding error.” UBS estimates that approximately 35 Apple suppliers operate around 38 discrete facilities in Vietnam, concentrated in areas like Bac Giang, Bac Ninh, Hai Phong, Phu Tho, and Vinh Phuc. In comparison, mainland China still dominates the supply chain, representing over 35% of Apple’s supplier locations globally. UBS has a ‘Neutral’ rating and $210 price target on Apple, based on about 28 times their calendar year 2026 earnings per share (EPS) estimate, reflecting a higher equity risk premium and interest rates. “We note our financial projections reflect the impact of the proposed tariffs in the June quarter but not beyond given the fluid nature of the discussions,” they wrote. Shares of Apple finished Thursday’s trading session at about $213.
Read More
