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The Vanguard Mega Cap Growth Index Fund ETF Shares (NYSEARCA:MGK) is too risky for me to recommend. What are the specific risks I see? Let's dig in.
MGK is an ETF that passively tracks the CRSP
MGK: A Highly Concentrated Bet I Won't Be Taking
Summary
- Vanguard Mega Cap Growth Index Fund ETF Shares tracks CRSP US Mega Cap Growth Index.
- The index defines growth based on future and historical EPS growth, sales growth, investment to-assets ratio, and return on assets.
- The fund has high position risk, sector risk, cap-weighted risk and growth risk.
- With too many risks and no logical reason for it to persist, I do not recommend owning this risky fund.
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