This AI-Heavy Vanguard ETF Is Perfect for Loading Up On Right Now

Core Viewpoint - The Vanguard Mega Cap Growth ETF is positioned as a strong investment opportunity in leading AI stocks, especially during the current market pullback [1]. Group 1: ETF Overview - The Vanguard Mega Cap Growth ETF is concentrated with only 66 stocks, with nearly 70% of its portfolio in technology stocks, including top AI names [2][3]. - The ETF tracks the CRSP US Mega Cap Growth Index, which consists solely of megacap companies that represent 70% of the total market capitalization of U.S. stocks [4]. - The smallest stock in the ETF has a market cap of just under $70 billion, indicating a focus on large, established companies [4]. Group 2: Performance Metrics - Over the past 10 years, the ETF has generated an average annual return of 18.3%, with a yearly return of 19.3% over the past five years and 33.2% over the past three years [6]. - The ETF's top holdings are primarily in stocks leading the AI sector, which are expected to continue strong growth despite concerns about an AI bubble [8][9]. Group 3: Investment Strategy - The current market pullback presents a favorable entry point for investors, allowing them to purchase shares of the ETF more than 5% off its highs [9]. - A dollar-cost averaging strategy is recommended for long-term investment in the ETF to build wealth and mitigate market timing risks [10].