Many investors might think exchange-traded funds (ETFs) are like the tortoise and the hare in Aesop’s fable about the race between these two unlikely competitors. In their view, ETFs can win the race over the long term by plodding along slowly but steadily.
This stereotype might be true for some ETFs. However, there are exceptions. One Vanguard ETF has skyrocketed 40% over the last 12 months.
A mega winner
Which ETF has turned in such an impressive performance? The Vanguard Mega Cap Growth Index Fund ETF (NYSEMKT: MGK). As its name implies, this Vanguard fund owns mega-cap stocks (ones with market caps of $200 billion or more) with exceptional growth prospects.
The Vanguard Mega Cap Growth Index Fund ETF currently holds positions in 82 stocks. The median-market cap of these stocks is $1.3 trillion. The stocks in the ETF’s portfolio have delivered an average annual-earnings growth over…
