Meet the Spectacular Vanguard ETF With Almost 40% of Its Portfolio Invested in Nvidia, Apple, Microsoft, and Amazon

Core Insights - Growth stocks have been the market leaders, with the S&P 500 Growth index returning 60.6% over the five years ending October 20, compared to 56.7% for the S&P 500 [1] - The "Magnificent Seven," including Nvidia, Apple, Microsoft, and Amazon, have significantly contributed to the leadership of big growth stocks [1][2] - Investors holding these stocks have likely seen strong portfolio performance, although selecting the right stocks remains challenging [2] Vanguard Growth ETF Overview - The Vanguard Growth ETF (NYSEMKT: VUG) provides access to major growth stocks, with Nvidia, Microsoft, Apple, and Amazon making up approximately 39% of the fund [3] - VUG, with a total asset value of $195 billion, holds 160 stocks across 11 sectors, but has a heavy concentration in technology, allocating 62.1% of its portfolio to this sector [4] - The top three holdings in VUG—Nvidia, Microsoft, and Apple—account for one-third of the ETF's weight, with a combined market capitalization of $12.17 trillion [5] Sector Analysis - While VUG appears tech-heavy, it includes stocks like Meta Platforms and Alphabet as tech, which are technically classified as communication services [6] - Including Netflix, the technology exposure of VUG is closer to half its total weight when accounting for these classifications [6] - The Vanguard Growth ETF has shown strong performance compared to rivals and is considered a solid option for long-term investors due to its low fees [7]