Vanguard Mega Cap Growth ETF

MGK

Market cap $30.8B

Tech stocks are pricey with strong fundamentals. Ride the AI euphoria with ETFs like MAGS, FNGS, MGK, XLG.

Investing in the stock market is one of the most effective ways for everyday people to build life-changing wealth, and you don't need a lot of money or experience to get started.

Wall Street adopted the "Magnificent Seven" moniker in 2023 to describe a group of seven technology companies that were consistently outperforming the rest of the market. They currently dominate different segments of the artificial intelligence (AI) industry, which has accelerated their returns.

Megacap technology stocks are starting to look a little expensive, especially after recent moves in stocks like Nvidia (NVDA -0.26%) and Advanced Micro Devices (AMD 3.77%). It's tough to know which large tech stocks are trading for a fair valuation, which ones still have the most opportunities to grow, and which ones might be a little too expensive.

Alphabet, Amazon, Apple, Meta Platforms, Microsoft, Nvidia, and Tesla are the leading tech companies in the world, often referred to as the "Magnificent Seven." They've generally been excellent investments to hang on to recently.

With a little over three months remaining in 2025, now might be a good time to think about making some portfolio adjustments ahead of the new year. Artificial intelligence (AI) is currently a key driver of stock market returns, and we could still be in the early innings of this tech revolution, so investors who lack exposure might want to make some moves.

The "Magnificent Seven" megacap tech stocks have been just that in recent years -- magnificent. As a group they've climbed 98% over the past two years (versus a 46% gain for the S&P 500 index) and today account for about 34% of the market-cap weighted S&P 500 index.

The right investments can be life-changing. Even if you're not a stock market expert, exchange-traded funds (ETFs) can help you build wealth that will last a lifetime with next to no effort on your end.

Designed to provide broad exposure to the Large Cap Growth segment of the US equity market, the Vanguard Mega Cap Growth ETF (MGK) is a passively managed exchange traded fund launched on December 17, 2007.

The term "Magnificent Seven" was first used by Wall Street analysts in 2023 to describe a group of seven companies that operate at the cutting edge of the technology industry. They are worth a combined $19.7 trillion, but their incredible size isn't the only reason they earned the nickname.