By Daniel Foelber
Publication Date: 2026-09-30 11:30:00
On Sept. 21, the Nasdaq Composite (^IXIC -0.09%) closed at its all-time high while the S&P 500 (^GSPC -0.17%) closed less than 0.5% from its all-time high. The technology sector is largely responsible for driving the indexes to new heights. As of market close on Sept. 25, it’s less than 1% off its all-time high — by far the best of any sector. Meanwhile, healthcare is down 2.6% from its all-time high, and the other nine sectors are down more than 5% from their highs.
Investors looking for outsize exposure to top growth stocks have come to the right place. The Vanguard S&P 500 ETF (VOO -0.16%) — which mirrors the performance of the S&P 500 — has a combined 30% weighting in its five largest holdings — which are Nvidia (NVDA -0.72%), Apple (AAPL -2.66%), Alphabet (GOOG -0.54%) (GOOGL -0.53%), Microsoft (MSFT -0.05%), and Amazon (AMZN +0.21%). By comparison, the Vanguard Morningstar Mega Cap Growth ETF (MGK -0.05%) has a whopping 51.8% invested in those five stocks alone.
Here’s why the Mega Cap Growth ETF stands out as a better buy for growth investors than an S&P 500 ETF, and some risks worth considering before buying.
Image source: Getty Images.
Over two-thirds of MGK is invested in just 10 stocks
The Mega Cap Growth ETF has a 0.05% expense ratio, compared with 0.03% for the Vanguard S&P 500 ETF. So it’s only marginally more expensive from a fee standpoint — with 0.05% equating to $5 for every $10,000 invested compared to $3 for the S&P 500 ETF.
The 10 largest…
