Meet the Magnificent Vanguard ETF With 37.6% of Its Portfolio Invested in Nvidia, Apple, and Microsoft

Core Insights - The Vanguard Mega Cap Growth ETF has a significant focus on technology stocks, with 60% of its portfolio invested in this sector, and its top three holdings (Apple, Nvidia, Microsoft) account for 37.6% of the total portfolio [3][4] - The average return of the eight American technology stocks valued at over $1 trillion is approximately 67% in 2024, significantly outperforming the S&P 500, which is up by only 26% [1][8] - The ETF has generated a compound annual return of 13.3% since its inception in 2007, outperforming the S&P 500's average annual return of 10.2% over the same period [14] Technology Sector Performance - Tesla is highlighted as a major player in AI due to its self-driving vehicle software, while Alphabet is transforming its Google Search business with its AI models called Gemini [5] - The Vanguard ETF's top holdings include companies that are leaders in AI and technology, such as Apple, Nvidia, and Microsoft, which are driving significant advancements in various segments of AI [9][10] - The ETF also includes other influential AI stocks like Broadcom, Salesforce, and Advanced Micro Devices, indicating a broad exposure to the AI sector [11][19] Investment Strategy - Investing in the Vanguard Mega Cap Growth ETF may be a simpler option for investors seeking exposure to leading technology companies without purchasing individual stocks [18] - The ETF's performance is bolstered by the ongoing AI revolution, with predictions that major companies will invest a combined $300 billion in AI development by 2025, potentially leading to substantial revenue growth [19] - The ETF also includes non-technology companies like Eli Lilly and Visa, providing some diversification within the portfolio [20]