Meet the Low-Cost Vanguard ETF With 51.8% Invested in Nvidia, Apple, Alphabet, Microsoft, and Amazon While VOO Has Just 30%
On Sept. 21, the Nasdaq Composite (NASDAQINDEX: ^IXIC) closed at its all-time high while the S&P 500 (SNPINDEX: ^GSPC) closed less than 0.5% from its all-time high. The technology sector is largely responsible for driving the indexes to new heights. As of market close on Sept. 25, it's less than 1% off its all-time high -- by far the best of any sector. Meanwhile, healthcare is down 2.6% from its all-time high, and the other nine sectors are down more than 5% from their highs. Investors looking for outsize exposure to top growth stocks have come to the right place. The Vanguard S&P 500 ETF (NYSEMKT: VOO) -- which mirrors the performance of the S&P 500 -- has a combined 30% weighting in its five largest holdings -- which are Nvidia (NASDAQ: NVDA) , Apple (NASDAQ: AAPL) , Alphabet (NASDAQ: GOOG) (NASDAQ: GOOGL) , Microsoft (NASDAQ: MSFT) , and Amazon (NASDAQ: AMZN) . By comparison, the Vanguard Morningstar Mega Cap Growth ETF (NYSEMKT: MGK) has a whopping 51.8% invested in those five stocks alone. Here's why the Mega Cap Growth ETF stands out as a better buy for growth investors than an S&P 500 ETF, and some risks worth considering before buying. Continue reading