Meet the Brilliant Vanguard ETF With 45.3% of Its Portfolio Invested in Nvidia, Apple, Microsoft, and Alphabet
The Motley Fool
by newsfeedback@fool.com (Anthony Di Pizio)February 19, 2026
AI-Generated Deep Dive Summary
The Vanguard Mega Cap Growth ETF (NYSEMKT: MGK) has garnered significant attention for its impressive 18.8% annual return over the past decade. This ETF tracks the CRSP U.S. Mega Cap Growth Index, which exclusively invests in the top 65 largest companies listed on U.S. stock exchanges. These companies account for an astounding 70% of the total market value, underscoring the extreme concentration of wealth in large corporations. Among these holdings, Nvidia, Apple, Microsoft, and Alphabet make up a combined $14.9 trillion, highlighting the fund's heavy exposure to tech giants driving innovation in artificial intelligence (AI) and other cutting-edge industries.
The article emphasizes that this ETF's success stems from its focus on high-growth sectors like AI, where these top companies dominate. By holding similar weightings as the index it tracks, Vanguard Mega Cap Growth ETF replicates the strong performance of its underlying portfolio. This strategy has allowed the fund to deliver consistently robust returns, making it a compelling option for investors seeking exposure to large-cap growth stocks.
For those looking to enhance their investment strategies, adding this ETF to a diversified portfolio could potentially "supercharge" returns due to its concentrated yet highly influential holdings. However, readers are advised to weigh the potential rewards against the risks of investing in such a focused portfolio, particularly given the significant weight placed on tech giants like Apple and Microsoft. This makes the ETF an intriguing option for investors eager to capitalize on the growth of leading U.S. companies while staying informed about its unique investment approach.
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Originally published on The Motley Fool on 2/19/2026