The Best ETF to Buy and Hold for the Next Decade, According to 19 Years of History
Investors embracing the Vanguard Morningstar Mega-Cap Growth ETF may be handsomely rewarded over the next decade.
Investors who are familiar with market history know that growth and value stocks have historically taken turns as the top performers. While the growth vs. value winner has been more consistent in the past, this pattern has continued since 2008. The Vanguard Morningstar Mega-Cap Growth ETF (MGK -0.96%), an ETF with a 19-year history and a $34.9 billion asset base, has outperformed the S&P 500 and the S&P 500 Growth Index during this time period.
Despite concerns that Federal Reserve interest rate hikes may negatively impact growth stocks, this ETF has held up well despite the Federal Reserve's rate hike campaign between 2022 and 2023. The ETF's strong performance can be attributed to the fact that many of its top holdings have large cash reserves and are investing heavily in artificial intelligence, which could benefit them in the long run.
Additionally, the ETF's low annual fee of 0.05% makes it an attractive option for long-term investors. While past performance is not a guarantee of future results, the Vanguard Morningstar Mega-Cap Growth ETF's strong track record and promising outlook make it a compelling choice for buy-and-hold investors looking to build long-term wealth.
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