Nvidia, Apple, Alphabet, Microsoft, and Amazon Now Make Up 30.8% of VOO and 49.2% of VUG. Here’s a Better Low-Cost Vanguard ETF to Buy Now.
Vanguard just updated its key holdings across major exchange-traded funds (ETFs) like the Vanguard S&P 500 ETF (NYSEMKT: VOO) and Vanguard Morningstar Growth ETF (NYSEMKT: VUG).
As of Sept. 30, the Vanguard S&P 500 ETF had a staggering 30.8% weighting in just five stocks — Nvidia (NASDAQ: NVDA), Apple (NASDAQ: AAPL), Alphabet (NASDAQ: GOOG) (NASDAQ: GOOGL), Microsoft (NASDAQ: MSFT), and Amazon (NASDAQ: AMZN). Those same five companies make up a mind-numbing 49.2% of the Vanguard Morningstar Growth ETF.
Concentration in just a handful of companies may be unappealing for investors who already own mega-cap growth stocks as individual stock holdings or through ETFs and index funds.
Source: www.fool.com — article syndicated from the publisher’s feed; all rights remain with the original publisher.