MGK — Trading Ideas on TradingView

Vanguard Mega Cap Growth ETF (MGK): FAQ guide before investing 🚀 Vanguard Mega Cap Growth ETF (MGK): A Deep Dive into Holdings and Hypothetical Returns 🌟 The Vanguard Mega Cap Growth ETF (MGK) is a popular exchange-traded fund offering investors access to some of the largest and most dynamic growth-oriented companies in the U.S. market. MGK closely tracks the CRSP US Mega Cap Growth Index, emphasizing mega-cap stocks. 🎯 Key Features of MGK 💰 Expense Ratio: 0.07%, a cost-effective choice for investors. 📊 Assets Under Management: Around $25.42 billion. 💵 Dividend Yield: 0.44%, distributed quarterly. 🏆 Top Holdings: 🍎 Apple Inc. (AAPL): 14.34% 🖥️ Microsoft Corp. (MSFT): 11.93% 🎮 NVIDIA Corp. (NVDA): 10.70% 📦 Amazon.com Inc. (AMZN): 7.63% 📱 Meta Platforms Inc. (META): 4.33% 🔌 Broadcom Inc. (AVGO): 3.54% 🚗 Tesla Inc. (TSLA): 3.22% 💊 Eli Lilly and Co. (LLY): 3.20% 💳 Visa Inc. (V): 2.76% 🔍 Alphabet Inc. (GOOGL): 2.31% 📌 Sector Allocation: 💻 Technology: ~52.8% 🛒 Consumer Discretionary: 15.9% 📡 Communication Services: 11.0% 📈 Performance Overview MGK has consistently demonstrated strong returns: 🗓️ Year-to-Date (YTD): 0.96% 📅 1-Year Return: ~21.09% 📆 3-Year Return: ~23.26% 📊 5-Year Return: ~19.26% 💸 Hypothetical Investment Scenarios Assuming an average annual return of 19.26%, here's how various investments might grow over five years: 💲 $10,000 Investment: Year 1: $11,926 Year 2: $14,219 Year 3: $16,951 Year 4: $20,207 Year 5: $24,070 💲 $100,000 Investment: Year 1: $119,260 Year 2: $142,190 Year 3: $169,510 Year 4: $202,070 Year 5: $240,700 💲 $1,000,000 Investment: Year 1: $1,192,600 Year 2: $1,421,900 Year 3: $1,695,100 Year 4: $2,020,700 Year 5: $2,407,000 ⚠️ Note: These returns are hypothetical and assume consistent annual performance, which may not reflect actual market volatility. 🔑 Considerations for Investors 🎯 Concentration Risk: MGK heavily invests in technology and a few major stocks, tying its success closely to these specific companies. 📉 Market Volatility: Although historically strong, MGK can be highly volatile, particularly during tech-sector downturns. 📈 Long-Term Growth: Ideal for investors seeking significant long-term capital appreciation through prominent U.S. growth firms. 📌 In Summary: MGK provides focused exposure to U.S. mega-cap growth stocks with a strong track record. Investors should consider portfolio diversification carefully due to its sector concentration.

Can Mega Cap Growth Make A Comeback?One of the most important, yet consistently underappreciated, aspects of technical analysis is the concept of relative strength. As a portfolio manager, one must be held accountable to some type of benchmark. And thus, if we want to outperform said benchmark, we most own things that are outperforming the benchmark! Participating in trends and capturing profitable trades is the goal that every trader and investor envisions when they enter a position. And of course, this is what indeed what we want in the end...profits. But those profits need to be greater than your benchmark, or else, what is the point? This is a concept that we at Adaptiv are constantly applying across any stock (or asset) when considering it for a position for clients. We are always looking to be involved in the strongest areas of the market. If we know that major indices, for all intents and purposes, are just the average return of a basket of stocks, then we also know that some stocks must be doing better than the average and some must be doing worse. It seems like common sense to participate in the stocks and trends that are indeed stronger than the average stock, or in our case, the benchmark. Sometimes the rotation between leading areas happens slowly as strength can stay within certain sectors and sub-industries for many months or even years. In other environments, the rotation can be quick and less-sticky, much like we saw in 2021. While we as market participants do not get to choose the pace of rotation, it is still a practice that must be constantly applied, in order to consistently create alpha. One area that is very important to the broad market is the Growth/Tech theme, and more specifically the largest capitalized stocks within that area. We know that these stocks have a very large influence on the market as a whole. When they are leading, the market usually finds itself in an easier uptrend, like we saw more recently in 2017, the first half of 2018, and 2020, following the 'Covid lows'. The relative relationship between these mega cap stocks and the S&P 500, as mentioned above, has been trendless for nearly two years. And over the last twelve-plus months, I think it's fair to say the 'average' stock has been quite a mess. And the lack of trending leadership from these important stocks certainly hasn't helped. But could a turn around be under way? We recently saw a failed breakdown (black line) in this relationship, following a well-anticipated bullish RSI divergence (not pictured). As any well-studied technician knows, the old adage "from failed moves come fast moves" can be a very important one. Given this new information, we should not be surprised if Mega Cap Growth stocks substantially outperforming in the coming weeks, What about the most important names within this area? What stocks could we look at for clues as to where the broader relationship could potentially go? I think Apple gives a great insight as to what other large Growth names could do on a relative basis over the short- to intermediate-term. And it just so happens that the relationship between Apple and the S&P 500 is currently sitting at a very important inflection point. Should this ratio break higher (above the purple line), I think it bodes well for Apple's peer group as well. Lastly, we know that a big chunk of the Mega Cap Growth arena consists of Tech stocks. Almost 40% to be exact. So, we would also want to look at this sector as well for any information that this theme, and thus stocks similar to Apple, are indeed moving into a period of outperformance. Similar to the first two relationships, this one has also been range bound for many, many months. However, broad Tech seems to have a little bit more short-term resistance than Mega Cap Growth. In order to increase the confidence of alpha generation from this area, I think technicians want to see this relationship rise above the blue line. If we can get all three of these relationship to confirm new relative uptrends in the coming weeks/months, I think that bodes very well not just for this subset of names, but the market as a whole. Ian McMillan, CMT Adaptiv Shared content and posted charts are intended to be used for informational and educational purposes only. The CMT Association does not offer, and this information shall not be understood or construed as, financial advice or investment recommendations. The information provided is not a substitute for advice from an investment professional. The CMT Association does not accept liability for any financial loss or damage our audience may incur.

$MGK Pullback Buyers Hunting For The Entry $MGK has had a great run higher doubling in value from the lows. This move higher did get quite overextended creating an overshoot on the highs. When a market blows through a level (in this case the channel highs) and overshoots it, the response is very important. In this case, the response was immediate bear pressure which caused the bulls to fail hard. Now that we have seen the overshot high failure, it is expected to see an overshot on the lows too to equalize. Buyers are lying in wait for the best dip opportunity to jump back in this monster.