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The Vanguard Morningstar Mega Cap Growth ETF (NYSEMKT: MGK) has delivered a compound annual return of 13.6% since its 2007 launch, outrunning the S&P 500's 10.9% annual average over the same period.
The complication is structural: more than 72% of the fund's assets sit in technology, and three stocks account for 36.2% of everything. What's driving the performance The fund tracks the Morningstar U.S.
Mega Cap Growth index, which holds 56 of the most valuable companies listed on American exchanges.
Nvidia holds the top position at 13.52% of the portfolio, followed by Apple at 13.19% and Microsoft at 9.49%, as of July 31.
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