Why AI investors are eyeing Vanguard’s Mega Cap Growth ETF after the pullback
The Vanguard Mega Cap Growth ETF (MGK) has become an appealing option for investors looking to gain exposure to artificial intelligence. While AI-driven stocks have dominated market gains recently, a recent pullback has created a potential buying opportunity. The ETF, which tracks major US growth companies, now trades at a discount compared to its peak earlier this year.
MGK follows the CRSP US Mega Cap Growth Index, covering some of the largest US stocks by market value. Together, these companies represent around 70% of the total US stock market capitalisation. The fund holds just 66 stocks, with nearly 70% allocated to technology firms—many of which are leaders in AI development.
MGK’s focus on mega-cap AI and tech stocks, combined with its recent price dip, presents a potential entry point for investors. The fund’s historical returns and concentration in established companies distinguish it from speculative bubbles of the past. For those considering long-term exposure to AI growth, the current valuation may offer a strategic advantage.
