3 ETFs for Mega Cap Exposure

2 Equity and 1 Income 🚀

3 ETFs to consider for Mega-Cap Exposure, funds designed to help you tap into the growth and stability of the world’s largest companies!

(Mega-cap, get it??)

To capitalize on today’s bull market, consider a simple move: investing in a growth-focused ETF.

Let’s explore some of the mega-cap growth ETFs on the market today.

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1. Vanguard Mega Cap Growth ETF MGK 0.00%↑

The Vanguard Mega Cap Growth ETF (MGK) offers low-cost access to leading growth stocks, with a competitive expense ratio of 0.07%. This fund tracks the CRSP U.S. Mega Cap Growth Index, automatically adjusting to favor dominant growth industries and stocks over time.

Technology dominates MGK’s portfolio, accounting for 61% of its allocation, reflecting the market’s top-performing sector. Unlike other ETFs on this list, MGK includes 71 companies, with top holdings like Apple, Nvidia, and Microsoft, each representing over 12%.

Spanning 10 industries, MGK also provides exposure to names like Eli Lilly in pharmaceuticals and Visa in financial services. A full list of holdings is provided below.

This strategy has paid off, with MGK up 30% in 2024, outperforming the S&P 500.

Created with TradingView

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2. Roundhill Magnificent Seven ETF MAGS 0.00%↑

The Roundhill Magnificent Seven ETF (MAGS) offers focused, equal-weight exposure to the "Magnificent Seven" mega-cap stocks: Alphabet (GOOG, GOOGL), Amazon (AMZN), Apple (AAPL), Meta (META), Microsoft (MSFT), Nvidia (NVDA), and Tesla (TSLA). Rebalanced quarterly to maintain equal weighting, the fund ensures consistent exposure to its key holdings. A full list of holdings is provided below.

As you can tell, MAGS provides a streamlined portfolio of just seven holdings, and contains 64 less holdings compared to MGK. Be wary, as exposure to only the Mag 7 can offer potential for outsized gains from market leaders but comes with the risk of limited diversification.

This young fund boasts a competitive expense ratio of 0.29%, and is an excellent choice for investors seeking an all-in-one option targeted exposure to the largest U.S. companies.

Since its launch in April 2023, the ETF has delivered impressive returns, significantly outperforming the S&P 500 and the NASDAQ-100.

Created with TradingView

3. REX FANG & Innovation Equity Premium Income ETF FEPI 0.00%↑

Here’s an interesting one…

FEPI offers investors unique access to the 15 biggest US technology stocks through the FANG & Innovation Index, and seeks to turn the volatility of these top-performers into a steady income source using a sophisticated covered call strategy. Holdings are listed below.

The covered call strategy takes advantage of big tech stocks' volatility by selling out-of-the-money call options. While this can generate yields of 20-30%, it also limits the potential for further stock gains. However, covered call strategies can help mitigate price declines, offering some downside protection.

FEPI has performed fairly well YTD, boasting a ~17% return, and has generated solid income, as seen below:

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Happy investing!

If you are interested in viewing my live ETF portfolio, download Blossom Social here, and follow my profile, etf.investments 🤓 (Only available in the US and Canada)

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