The Vanguard Morningstar Mega Cap Growth ETF (MGK) tracks an index of 52 of America's most valuable growth companies, which together are worth almost as much as the other 3,424 companies in the Morningstar US Total Market index. Nvidia, Alphabet, Apple and Microsoft, with a combined market capitalization of $17.6 trillion, make up 44.6% of the fund's portfolio, and the article links them to AI efforts such as Nvidia's Vera Rubin GPU systems and Microsoft's Copilot. Since January 2023, these four stocks have a median return of 195%, although AI stocks have recently pulled back. The ETF has delivered a compound annual return of 13.8% since 2007, versus 10.9% for the S&P 500, but the article notes its concentration in 52 stocks means diversification may help reduce downside risk. In the article's example, $20,000 in an S&P 500 fund in 2007 would be worth $142,800 today, while putting $10,000 into each of the S&P 500 and this ETF would have reached $188,000.
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