Vanguard ETF heavily invested in tech giants like Nvidia, Apple, Microsoft, and Amazon

From Nasdaq: 2024-11-25 04:36:00

The S&P 500 index is up by 30% over the past year, with Nvidia contributing one-fifth of that gain. This chip giant has seen a 186% return in the last 12 months and is part of the “Magnificent Seven” tech giants. The Vanguard Mega Cap Growth ETF, heavily invested in these tech stocks, consistently outperforms the S&P 500.

Apple recently released Apple Intelligence software with AI features for its devices. Nvidia, a top supplier of data center GPUs for AI, has seen triple-digit revenue growth due to high demand. Microsoft and Amazon, two of Nvidia’s major customers, rent computing power for businesses to deploy AI models.

The Vanguard Mega Cap Growth ETF, with an expense ratio of just 0.07%, has outperformed the S&P 500 with a compound annual return of 13% since 2007. With a concentrated tech portfolio, it aligns with the growth in enterprise software, cloud computing, smartphones, and AI. AI is expected to significantly impact the ETF’s future returns.

Goldman Sachs predicts AI will add $7 trillion to the global economy by 2030. The Vanguard Mega Cap Growth ETF is a balanced portfolio option for investors seeking exposure to tech giants like Nvidia, Apple, Microsoft, and Amazon. Consider diversifying with this ETF to mitigate risks associated with individual stock investments.



Read more at Nasdaq: Meet the Spectacular Vanguard ETF With 45.1% of Its Portfolio Invested in Nvidia, Apple, Microsoft, and Amazon