MGK tracks the CRSP US Mega Cap Growth Index, targeting companies with high growth characteristics such as strong earnings or sales growth. The portfolio is heavily concentrated, with the top holding at 13.75% and the top 10 accounting for 66.5% of holdings. Technology dominates the exposure at 55.3%, followed by Communication at 17.2%. Over five years, MGK has risen 110% with dividends reinvested, compared with 92% for the S&P 500, but it has not created a meaningful lead versus the benchmark. The expense ratio is 0.05%, making it inexpensive, though returns may be diluted by many holdings and may take years to reflect future tech buildout outcomes.
"There's a tech ETF that has been almost neck-and-neck with the S&P 500 in the past year and has built up a meaningful lead over the past five years. It's the . This ETF tracks the price of the CRSP US Mega Cap Growth Index, which in turn tracks companies with high "growth" characteristics like high earnings or sales growth."
"The top ten holdings are almost all tech, except for . You're looking at 55.3% exposure to tech stocks, followed by 17.2% from the Communication industry, but even that hasn't been enough for MGK to gain a meaningful lead over the benchmark S&P 500 index. Dividends reinvested, MGK is up 110% over the past five years vs. the S&P 500's 92%."
"The only thing that I do think makes this ETF worth owning is the 0.05% expense ratio, or just $5 per $10,000. If you are a strong believer in the biggest tech companies and you want to "set it and forget it," you can put some money here. But again, you're going to have to wait for many years before these hyperscalers start seeing any returns from the buildout, and your tech returns will see dilution with dozens of other holdings."
Read at 24/7 Wall St.
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