VOOG - Vanguard Mega Cap Growth ETF: Valuation Problems Persist Avoid For Now
- MGK is a highly-concentrated mega-cap growth ETF with an expense ratio of just 0.07%. It's been an outstanding performer in the last decade, trouncing the S&P 500 by 90%.
- Fundamentals support this performance. Mega-cap growth stocks are highly profitable, and the largest U.S. stocks consistently topped earnings expectations.
- However, investors can buy virtually the same earnings growth for a lower valuation. My fundamental analysis comparing MGK with IWY and IVY makes this clear.
- I'll also highlight 18 large-cap growth ETFs worth considering. One stands out for its ability to merge growth and value, and outperformed MGK by 9.53% from November to February.
- In summary, don't buy MGK just yet. Doing so ignores valuation and the alternatives, and you need to plan for the possibility that the latest market selloff hasn't ended.
For further details see:
Vanguard Mega Cap Growth ETF: Valuation Problems Persist, Avoid For Now