For Investors in Their 30s, Here's 1 Glorious Growth ETF to Buy Hand Over Fist and Hold Forever
Those who focus on growth in their youth can reap big rewards when they retire.
Overview
The Morningstar U.S. Mega Cap Growth index exclusively measures the performance of 56 of the most valuable companies listed on American stock exchanges. Growth stocks often deliver high capital gains, setting them apart from value stocks, which appreciate more slowly but offer steady dividend income.
For an exchange-traded fund (ETF) that mimics the Morningstar growth index by holding the same stocks, there's the Vanguard Morningstar Mega Cap Growth ETF (NYSEMKT: MGK). Thanks to its portfolio, which features a high degree of exposure to the technology sector, the fund has comfortably outperformed the benchmark S&P 500 index every year, on average, since it was launched in 2007.
Details
Aggressively pursuing growth can lead to high volatility, but that might be a worthwhile compromise for investors in their 30s, because it can make a substantial difference to their financial position when they reach retirement age. If you are in that age group, here's why the Vanguard Mega Cap Growth ETF might be worth buying now and holding forever.
Source
Originally published at www.fool.com.