Is This Low-Cost Megacap ETF a No-Brainer Buy for the Long Haul?

Group 1 - Investing in megacap stocks, defined as those with market caps exceeding $200 billion, can provide long-term portfolio protection due to their established nature and high valuations [1] - The Vanguard Mega Cap Growth ETF (NYSEMKT: MGK) focuses on megacap stocks and has outperformed the market this year, boasting a low expense ratio of 0.07% [2] - The ETF's portfolio is heavily weighted towards tech stocks, which constitute just under 70% of its holdings, potentially posing a concern for risk-averse investors [3] Group 2 - The tech sector has seen significant growth, driven by artificial intelligence (AI) trends, with consumer discretionary stocks making up around 16% of the ETF's holdings [4] - The top three holdings in the ETF are major tech companies: Nvidia, Apple, and Microsoft, which together account for over 38% of the portfolio [4] - The ETF has outperformed the market in eight of the past nine years, demonstrating the effectiveness of its tech-heavy strategy [6][7] Group 3 - As of November 17, the ETF has increased by 18% this year, compared to a 13% rise in the S&P 500, continuing its trend of outperforming the broader index [8] - The only year of underperformance was 2022, when the ETF fell by 34% amid a tech sector sell-off, which was a sharper decline than the S&P 500's 19% drop [8]