Vanguard Mega Cap Growth Index Fund ETF Shares [MGK] Stock Forecast

Launched on 12/17/2007, the Vanguard Mega Cap Growth ETF (MGK) is a passively managed exchange traded fund designed to provide a broad exposure to the Large Cap Growth segment of the US equity market.

With the U.S. inflation cooling and the possibility of the Federal Reserve slowing or pausing rate hikes, the stage is set for growth ETF investing.

This ETF trading model uses the Conference Board Leading Economic Index to determine “Risk-On” periods for equities. A universe is defined from the SPDR, Vanguard, and PowerShares ETF providers for the sectors healthcare, energy, communication, technology, and general multi-sector funds, holding large-mega cap stocks from the United States.

Consumer and Producer Price Inflation in the United States cooled down considerably in March. These ETF areas are likely to gain ahead.

VettaFi's vice chairman Tom Lydon discussed the Vanguard Mega Cap Growth ETF (MGK) on this week's “ETF of the Week” podcast with Chuck Jaffe of “Money Life.” MGK crossed above its 200-day moving average about a month ago and has rallied more than 6% in the past couple of weeks.

Any (or all) of the FAANG stocks could produce hefty returns during the next bull market. The Vanguard Mega Cap Growth ETF offers heavy exposure to all five FAANG stocks.

A noticeable thing about this relief rally after the banking scares is that the US market has gone ahead in its recovery compared to other markets. A theory on that is that the tech mega-caps are so dependent on their horizon values and already have low WACCs, so changes in risk-free rates make the biggest difference.

Despite increased volatility last month, markets ended the first quarter on a high note. Some of the best ETFs and mutual funds surged.

Style Box ETF report for MGK

Mega-cap growth stocks led the market higher in January as rates fell and what failed in 2022 snapped back. SPY appears poised for more 2023 gains, but the bulls have work to do with the biggest of big names.