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At the center of everything we do is a strong commitment to independent research and sharing its profitable discoveries with investors. This dedication to giving investors a trading advantage led to the creation of our proven Zacks Rank stock-rating system. Since 1988 it has more than doubled the S&P 500 with an average gain of +24.93% per year. These returns cover a period from January 1, 1988 through January 4, 2021. Zacks Rank stock-rating system returns are computed monthly based on the beginning of the month and end of the month Zacks Rank stock prices plus any dividends received during that particular month. A simple, equally-weighted average return of all Zacks Rank stocks is calculated to determine the monthly return. The monthly returns are then compounded to arrive at the annual return. Only Zacks Rank stocks included in Zacks hypothetical portfolios at the beginning of each month are included in the return calculations. Zacks Ranks stocks can, and often do, change throughout the month. Certain Zacks Rank stocks for which no month-end price was available, pricing information was not collected, or for certain other reasons have been excluded from these return calculations.
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VANGUARD MEGA CAP GROWTH ETF (MGK)
MGK is ideal for investors seeking broad exposure to the U.S. equity market, with a focus on the mega cap growth stocks. These are ideal for investors seeking good returns with low risk. These stocks are usually well-established brand names and less volatile compared to growth stocks with lower capitalization. With the possibility of a slower rate hike trajectory in the near term, the greenback will likely remain range-bound benefitting mega cap stocks. This is because these stocks have huge foreign exposure and thus will be less hurt due to a subdued greenback. Also, Trump’s plans for deregulation and fiscal reflation is a positive for growth stocks. However, volatility levels flared up to start Q2 of 2017 due to geopolitical concerns. This scenario may not be good for growth investing. MGK has a Zacks ETF Rank #3 (Hold) with a Medium risk.