Want to own all the “Big 7” stocks? Buy one of the Vanguard ETFs.

Investing can be boring. Especially if you want to buy multiple stocks. It’s not difficult, but it may take a while. This is where exchange-traded funds (ETFs) come in handy. You can buy multiple stocks at once.

with the so-called “Seven Heroes” stocks Providing momentum to the overall stock market, some investors may be interested in buying all of these stocks. Want to easily own all seven stocks? Buy one of the Vanguard ETFs.

A smiling man with hands behind his head sits in front of a laptop.

Image source: Getty Images.

Introducing the “Quality Eight”

Vanguard is one of the world’s leading fund management companies. It is particularly known for offering low-cost funds. Its 8-tier ETF currently owns all shares of Magnificent Seven.

let us start with Vanguard Total Stock Market ETF (NYSE:VTI). This ETF casts the widest net, owning nearly the entire U.S. stock market. The number of stocks held by VTI is as high as 3,731, including Microsoft, apple, Nvidia, Amazon, meta platform, letterand Tesla.

As its name suggests, Vanguard ESG U.S. Equity ETF (NYSE:ESGV) Focus on U.S. stocks that meet specific criteria Environmental, Social and Corporate Governance (ESG) All seven stocks are eligible, as well as 1,456 other stocks.

The smallest Big Seven stock (Tesla) has a market capitalization of over $560 billion. Vanguard Mega Cap ETF (NYSE:MGC) Invest in stocks with a market capitalization of $200 billion or more. Vanguard Large Cap ETF (NYSE:VV) Owning a basket of U.S. large-cap companies, it stands to reason that both ETFs hold all positions in the seven largest stocks.

Each of the seven largest stocks is S&P 500 Index.this Vanguard S&P 500 ETF (NYSE: VOO)Companies trying to track the S&P 500 hold positions in all seven stocks.

Investors are interested in the Big Seven primarily because of the huge returns they generate. For example, Nvidia’s stock price has soared nearly 240% in the past 12 months. Vanguard Mega Cap Growth ETF (NYSE:MGK) Focus on mega-cap growth stocks. Vanguard Growth ETF (NYSE:VUG) Focus on large-cap growth stocks. Vanguard S&P 500 Growth ETF (NYSE:VOOG) Focus on S&P 500 growth stocks. As expected, all three ETFs hold seven of the largest stocks.

How These Vanguard ETFs Compare

As we’ve discussed, these “Magnificent Eight” Vanguard ETFs have different objectives. How do they compare to each other in terms of annual expense ratios, risk and performance? The table below provides a summary comparison:


annual expense rate

Risk level*

5 years performance

Performance since inception

Vanguard Total Stock Market ETF





Vanguard ESG U.S. Equity ETF





Vanguard Mega Cap ETF





Vanguard Large Cap ETF





Vanguard S&P 500 ETF





Vanguard Mega Cap Growth ETF





Vanguard Growth ETF





Vanguard S&P 500 Growth ETF





Source: Vanguard. All information as of the time of writing. *Vanguard rates risk on a scale from 1 (lowest risk) to 5 (highest risk).

Vanguard’s eight ETFs performed very closely. None of their annual expense rates are particularly high. They have the same level of risk (as determined by Vanguard). They have both delivered double-digit percentage returns over the past five years.

Performance since inception is the main differentiating factor, with the Vanguard S&P 500 Growth ETF handily outperforming other ETFs, while the Vanguard Total Stock Market ETF’s returns are well below those of other ETFs. However, it’s important to remember that these ETFs trade at different times. This may cause a bias in each fund’s performance relative to the other funds since their inception. Additionally, the standard disclaimer applies to every ETF: past performance is not necessarily indicative of future results.

Which one is the best?

Beauty is in the eye of the beholder, and likewise, the most worthwhile “Magnificent Eight” Vanguard ETF to buy depends on the individual investor.

If you want more diversification, the Vanguard Total Stock Market ETF may be most attractive to you. On the other hand, if you want a greater weighting of the seven largest stocks, the Vanguard Mega Cap Growth ETF may be of most interest to you. Microsoft, Apple, Amazon, Nvidia, Meta, Alphabet and Tesla together account for 57% of the ETF’s total portfolio.

Should you invest $1,000 in Vanguard World Fund – Vanguard Esg US Stock ETF right now?

Before you buy shares of Vanguard World Fund – Vanguard Esg US Stock ETF, consider the following factors:

this Motley Fool Stock Advisor The analytics team has just identified what they believe is 10 Best Stocks Investors can buy now… and the Vanguard World Fund – Vanguard Esg US Stock ETF is not one of them. The 10 stocks selected could generate huge returns in the coming years.

stock advisor Provides investors with an easy-to-follow blueprint for success, including guidance on building a portfolio, regular updates from analysts, and two new stock picks each month. stock advisor The service has more than tripled the S&P 500’s returns since 2002*.

View 10 stocks

*Stock Advisor returns as of March 25, 2024

John Mackey, the former CEO of Amazon subsidiary Whole Foods Market, is a member of The Motley Fool’s board of directors. Randi Zuckerberg, sister of Meta Platforms CEO Mark Zuckerberg, Facebook’s former director of market development and spokesperson, is also a board member. Suzanne Frey is a senior executive at Alphabet and a board member of The Motley Fool. Keith Speights Holds Alphabet, Amazon, Apple, Meta Platforms, Microsoft and Vanguard S&P 500 ETF holdings. The Motley Fool holds and recommends Alphabet, Amazon, Meta Platforms, Microsoft, Nvidia, Tesla, Vanguard Index Funds-Vanguard Growth ETF, Vanguard Index Funds-Vanguard Total Stock Market ETF and Vanguard S&P 500 ETF. The Motley Fool recommends the following options: long the January 2026 $395 Microsoft call option and short the January 2026 $405 Microsoft call option. The Motley Fool has a short January 2026 call option on Microsoft at $405. disclosure policy.

Want to own all the “Big 7” stocks? Buy one of the Vanguard ETFs. Originally published by The Motley Fool

Source link

Related Articles

Leave a Reply

Your email address will not be published. Required fields are marked *

Back to top button