VOOG vs. MGK: Which Vanguard Growth ETF Is a Better Buy?
Making a more concentrated bet on tech stocks can be risky -- and sometimes the best choice.
VOOG vs. MGK: Which Vanguard Growth ETF Is a Better Buy?
Overview
Vanguard is known for offering broadly diversified low-cost index funds that let you own hundreds or thousands of stocks. But for investors who want to make a more concentrated investment in growth stocks, Vanguard has choices.
Two popular Vanguard growth exchange-traded funds (ETFs) offer slightly different mixes of U.S. growth stocks, with a big emphasis on tech stocks. The Vanguard S&P 500 Growth ETF (NYSEMKT: VOOG) holds 145 stocks, and its tech sector weighting is 49.2%. The Vanguard Mega Cap Growth ETF (NYSEMKT: MGK) is even more concentrated: It holds 59 stocks, and 70% of the fund's assets are in the tech sector.
Details
In the past year, the Vanguard S&P 500 Growth ETF has outperformed the S&P 500 index, while the Vanguard Mega Cap Growth ETF has slightly underperformed. But the tech-heavy Nasdaq-100 index has outperformed both Vanguard growth funds. Let's see which of these two Vanguard growth ETFs could be the better buy.
Source
Originally published at www.fool.com.
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