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Meet the Spectacular Vanguard ETF With 46.7% of Its Portfolio Invested in Nvidia, Apple, Microsoft, and Alphabet | The Motley Fool
- MGK is a highly concentrated fund tracking the CRSP U.S. Mega Cap Growth Index, with 66 stocks representing about 70% of total market value.
- Nvidia, Apple, Microsoft, and Alphabet together account for about 46.7% of MGK's weighting, giving these four firms outsized influence on performance.
- MGK’s AI-driven tilt has fueled strong long-run returns, though risks come from concentration and potential AI demand downturns.
- Investors face volatility due to MGK's single-sector tilt and concentration risk in mega-cap AI leaders.
- MGK can complement a diversified portfolio by combining mega-cap growth exposure with broader market exposure.
- The AI megatrend has driven value across data centers, cloud services, and AI software, elevating the megacap cohort.
- MGK's top holdings list implied weights for Apple, Nvidia, Microsoft, and Alphabet toward roughly half its portfolio.
- MGK's performance is benchmarked against the S&P 500, underscoring its growth tilt relative to a broad market index.
- Investors are advised to consider a balanced approach, mixing MGK with broader market exposures for risk management.
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