Microsoft, Nvidia, Meta Platforms, and Tesla Helped Propel This Vanguard ETF Over 13% Higher in 9 Days. Here’s Why It’s Still a Buy Now.
From Nasdaq: 2025-05-07 03:18:00
Investors are eyeing the top 10 stocks to buy right now, with the S&P 500 closing higher for nine consecutive days, the first time since 2004, fueled by strong earnings and positive trade talks. The Vanguard Growth ETF surged 13.7%, focusing on mega-cap growth stocks like Apple, Microsoft, and Tesla, offering a low-cost opportunity for risk-tolerant investors.
The ETF concentrates on the “Magnificent Seven” mega-cap growth stocks, with 59.5% of the fund invested in just 10 companies, including Apple, Microsoft, Nvidia, and Amazon. These stocks led the market higher during a recent rally, outperforming the S&P 500, with Tesla rebounding on CEO Elon Musk’s decision to focus more on the company’s growth potential.
Microsoft reported exceptional revenue growth and strong margins from AI investments, while Meta Platforms saw high-margin growth from apps like Instagram. Alphabet also delivered exceptional results, supporting spending on Google Cloud and AI. Nvidia’s stock soared amid easing tariff tensions, as AI investments drive growth in GPU demand from hyperscalers like Microsoft and Meta.
Investors looking for exposure to leading growth stocks can consider the Vanguard Growth ETF, which has outpaced the S&P 500 over time. The ETF provides a simple and low-cost way to invest in themes like AI, cloud computing, and digital advertising. Despite not being in the top 10 stocks identified by the Motley Fool Stock Advisor team, the ETF offers potential for long-term growth.
Consider joining Stock Advisor for access to the latest top 10 stock picks, which have historically outperformed the S&P 500. Past recommendations like Netflix and Nvidia have generated significant returns. The ETF’s 0.04% expense ratio and minimum investment of $1 make it an attractive option for investors seeking exposure to growth themes like AI and cloud computing.
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