Vanguard Mega Cap Growth ETF

MGK

Market cap $32.4B

The Magnificent Seven includes artificial intelligence (AI) titans like Nvidia, Microsoft, and Apple. The stocks have produced blistering returns over the last few years, with each of them comfortably outperforming the S&P 500.

The Vanguard S&P 500 ETF should be a core holding for most investors. The Vanguard Mega Cap Growth ETF is a great way to invest in top growth stocks.

These Vanguard ETFs are set to outperform if growth stocks continue to lead the market higher. All three ETFs are heavily weighted to megacap tech stocks benefiting from AI.

AI stocks have pulled back from their highs. The Vanguard Mega Cap Growth ETF is one of the best ways to invest in leading AI stocks.

The Vanguard Mega Cap Growth ETF's exposure to tech has paid off with stellar returns. It has routinely outperformed the market by focusing on the largest growth stocks in the world.

VOO offers a meaningfully higher dividend yield and broader sector diversification than MGK. MGK has outperformed VOO over the past year and five years, but it also has a deeper maximum drawdown.

Vanguard Mega Cap Growth ETF charges a lower expense ratio than Invesco QQQ Trust, Series 1, but QQQ is significantly larger and more liquid. QQQ holds more stocks and offers slightly higher sector exposure to communication services, while both funds are heavily tech-weighted.

MGK and VOOG charge the same low fee, but VOOG offers a slightly higher dividend yield. VOOG holds over three times as many stocks, though both funds are heavily tilted toward technology.

VOO charges a lower expense ratio and delivers a higher dividend yield than MGK. MGK has outperformed VOO in the past year but carries higher volatility and a deeper historical drawdown.

VOO offers a much broader portfolio and higher dividend yield than MGK. MGK has outperformed VOO over the past year, but it also has a deeper five-year drawdown.