5 Best Growth ETFs To Buy Now

3. Vanguard Mega Cap Growth Index Fund (NYSE:MGK)

5-Year Share Price Performance as of March 27: 130.70%

Vanguard Mega Cap Growth Index Fund (NYSE:MGK) aims to replicate the performance of the CRSP US Mega Cap Growth Index through passive management and full replication. It offers investors exposure to the largest growth stocks in the US market. Vanguard Mega Cap Growth Index Fund (NYSE:MGK) is one of the best growth ETFs to watch. The fund offers an expense ratio of 0.07%, along with a portfolio comprising 82 stocks. As of February 29, 2024, Vanguard Mega Cap Growth Index Fund (NYSE:MGK)’s total assets amount to $18.6 billion. 

Mastercard Incorporated (NYSE:MA) is one of the largest holdings of Vanguard Mega Cap Growth Index Fund (NYSE:MGK). On March 12, Mastercard Incorporated (NYSE:MA) introduced Smart Subscriptions, an open-banking-powered solution helping consumers manage subscriptions. It builds upon last year’s Subscriptions Control, allowing cancellation, pausing, and resuming of subscriptions. Financial institutions can integrate it into consumer banking apps for spend analysis and categorization.

According to Insider Monkey’s fourth quarter database, 141 hedge funds were bullish on Mastercard Incorporated (NYSE:MA), compared to 140 funds in the previous quarter. 

Ensemble Capital Management stated the following regarding Mastercard Incorporated (NYSE:MA) in its fourth quarter 2023 investor letter:

“Mastercard Incorporated (NYSE:MA) (7.21% weight in the Fund): Payment companies are data companies. As we discussed last quarter in our write up of Mastercard, merchants can generate significant value from analyzing payment data to better understand their customers. Mastercard has long built AI-based products to enhance payment security and provide merchants with rich data analytics. In December, they rolled out Muse, a new online shopping companion that merchants who utilize certain Mastercard services can install on their own websites.

Muse seeks to replicate the instore experience of working with a salesclerk by allowing the customer to use natural language to browse products. Online shopping already works well if you know exactly what you are looking for, but Muse is striving to help customers find things to buy even when they aren’t sure what they are looking for.

Mastercard (7.21% weight in the Fund): In late October, Mastercard reported earnings that investors interpreted as pointing to a near term slowdown in payment growth. The stock fell 5.6% on the day. By the end of the next week, the stock had recovered its losses and went on to reach a new all time high on the last day of the year. But the 7.9% gain on the quarter slightly trailed the S&P 500.”

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