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Any S&P 500 Magnificent Seven stocks would be a welcome addition to any investor’s portfolio. Unfortunately for most investors, Magnificent Seven’s shares are so expensive that they’re largely out of reach if you’re not already rich (or close to it). Fortunately, that’s not the case because of a unique exchange-traded fund (ETF) that lets you own shares in four Magnificent Seven stocks at the same time.
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The Vanguard Mega Cap Growth ETF has a heavy focus on big tech, which accounts for 61.4% of the 71 stocks in the ETF’s portfolio. However, 45% of the ETF’s portfolio is invested in Apple (13.36%), Amazon (6.82%), Microsoft (12.35%) and Nvidia (12.52%). Apple, Microsoft and Nvidia are all at the forefront of the AI revolution, as Amazon has become a dominant force in e-commerce.
That’s impressive enough, but the Vanguard Mega Cap Growth ETF doesn’t stop there. In terms of weight allocation, every member of the S&P 500 Magnificent Seven is included in the top ten of the Vanguard Mega Cap Growth ETF. This means that you also invest in Meta and Tesla. The fund also owns shares in market share and industry powerhouses such as Eli Lilly, Visa, Costco and McDonalds.
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All of these companies offer products and services that are in high demand by large segments of the buying public. They also have a level of global recognition that is difficult to overestimate. According to Ycharts, the combined market cap of the S&P 500 Magnificent Seven is over $16 trillion. Data from Ycharts also shows that Magnificent Seven heavyweights Google, Nvidia and Microsoft are up almost 50% in 2024.
The same data also shows that Magnificent Seven shares have been responsible for 64.1% of the S&P 500’s market cap this year. So when you buy the Vanguard Mega Cap Growth ETF, you’re buying shares in multiple companies that have grown rapidly in 2024. They also appear poised for further growth in 2025 and beyond.