VUG - VUG: Way Too Risky Here

2024-06-21 10:57:58 ET

Summary

• Large-cap growth is in a concentration bubble, with select stocks driving averages.
• Vanguard Growth Index Fund ETF Shares offers exposure to nearly 200 large-cap US growth stocks with a low expense ratio.
• The VUG ETF is heavily concentrated in the Tech sector, with the top 3 holdings making up 1/3 of the fund, making it risky for long-term investment.

Allow me to start off this writing by making it clear - I am negative on large-cap growth. I believe we are in a concentration bubble where a select number of stocks (most notable Nvidia (NVDA)) are driving headline averages while deterioration is getting more extreme beneath “the market’s” surface. Having said that, it’s obviously still working from a style and market cap tilt perspective, and for all I know, persist like this for even longer....

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