The article says the Vanguard Morningstar Growth ETF (VUG) has outperformed the S&P 500 in 14 years since it began trading in January 2004. By comparison, SPIVA data show less than 11% of actively managed funds beat the S&P 500 over five years. VUG's technology weighting is 69.8%, with the Magnificent Seven making up over 56% of the fund. About 84% of its holdings are in the S&P 500, and nine of its top 10 holdings overlap, so the concentration offers an edge but also higher risk. The author attributes this edge to leading companies continuing to grow, and notes that investors already holding an S&P 500 ETF should watch this concentration risk.
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