The Motley Fool·2025-11-26 10:47Core Insights - The "Magnificent Seven" refers to a group of seven leading technology companies that are significantly outperforming the broader market, collectively valued at $20.6 trillion [1][2] - These companies have achieved a median return of 217% since the beginning of 2023, far exceeding the S&P 500's 72% gain during the same period [2] Group 1: Magnificent Seven Overview - The Magnificent Seven includes Nvidia, Apple, Microsoft, Alphabet, Amazon, Tesla, and Meta Platforms, all of which are heavily involved in innovative technologies such as AI, cloud computing, and electric vehicles [1][6] - Nvidia leads the group with a portfolio weighting of 14.28%, followed by Apple at 12.20% and Microsoft at 11.73% [6] Group 2: Vanguard Mega Cap Growth ETF - The Vanguard Mega Cap Growth ETF holds only 66 stocks, which represent 70% of the total market capitalization of 3,498 stocks in the CRSP U.S. Total Market Index, highlighting the concentration of wealth in the tech sector [5][6] - This ETF allocates 59% of its value to the Magnificent Seven, making it a strategic investment for those looking to gain exposure to high-growth technology stocks [4][6] Group 3: Performance and Returns - The Vanguard Mega Cap Growth ETF has delivered a compound annual return of 14% since its inception in 2007, with an impressive 18.3% return over the last decade [10] - A hypothetical investment of $20,000 split between the Vanguard Total World Stock ETF and the Vanguard Mega Cap Growth ETF would have yielded $83,118, demonstrating the potential benefits of including high-growth stocks in a diversified portfolio [12]