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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 shares are so expensive that they’re largely out of reach if you’re not already wealthy (or close to it). Thankfully, that isn’t the case because of a unique exchange-traded fund (ETF) that allows you to own shares in four Magnificent Seven stocks simultaneously.
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The Vanguard Mega Cap Growth ETF heavily focuses 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, while Amazon has become a dominant force in e-commerce.
That’s impressive enough, but the Vanguard Mega Cap Growth ETF doesn’t stop there. Regarding weight allocation, every S&P 500 Magnificent Seven member is included in the Vanguard Mega Cap Growth ETF’s top ten. That means you’ll also be investing in Meta and Tesla. The fund also holds shares in market share and sector powerhouses like Eli Lilly, Visa, Costco and McDonalds.
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All these companies offer products and services in high demand from 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. Ycharts data also shows that Magnificent Seven heavyweights Google, Nvidia and Microsoft are up by nearly 50% in 2024.
The same data also reveals the Magnificent Seven stocks have been responsible for 64.1% of the S&P 500’s market cap growth for the year. So, when you buy into the Vanguard Mega Cap Growth ETF, you buy shares in multiple companies that have grown rapidly throughout 2024. They also look set for continued growth in 2025 and beyond.
