Worried About "Magnificent Seven" Volatility in 2025? The Vanguard Mega Cap Value ETF Might Be the Answer.

The Roundhill Magnificent Seven ETF (NASDAQ: MAGS) rose around 65% in 2024, nearly three times the gain of the S&P 500 index (SNPINDEX: ^GSPC). As the exchange-traded fund's name suggests, it owns just seven stocks Nvidia, Meta Platforms, Alphabet, Amazon.com, Microsoft, Apple, and Tesla, all of which are large growth companies. If you have a value bias or are simply worried about the fact that the market has been driven higher by such a small group of companies, the Vanguard Mega Cap Value ETF (NYSEMKT: MGV) could be your solution in 2025.When you look at the roughly 23% gain of the S&P 500 index in 2024, it seems like an exceptional year for the market as a whole. But it might not be as good as you think. The evidence for that comes from the Invesco S&P 500 Equal Weight ETF (NYSEMKT: RSP). This exchange-traded fund owns the same stocks in the S&P 500 index, but instead of weighting them by market cap, it uses an equal weighting methodology, as its name indicates. The difference is material.SPY data by YCharts.Continue readingWeiter zum vollständigen Artikel bei MotleyFool Weiter zum vollständigen Artikel bei MotleyFool