Sources: 
Apple's recent market value loss of over $700 billion has sparked concerns regarding the Vanguard Mega Cap Growth ETF's performance, which has historically outperformed the S&P 500 since its inception in 2007.
The ETF, which holds just 69 stocks, accounts for
54.9% of its total portfolio value. Despite its past success, the
Bloomberg Magnificent 7 Index, which includes major tech players like Apple, Microsoft, and Nvidia, is currently underperforming the S&P 500. If this trend continues through December 31, it would mark only the second time in a decade that the index has lagged behind the broader market.
Compounding these issues,
US consumer sentiment is at its second-lowest level on record, while inflation expectations are at multi-decade highs, according to the University of Michigan's monthly survey. This economic backdrop raises questions about the sustainability of tech stock performance and the Vanguard ETF's ability to maintain its historical edge.
As tech stocks have led the market recovery since April, rising
31% compared to a
20% gain for the S&P 500, the future of the Magnificent Seven remains uncertain amidst these economic challenges.
Sources: Apple's staggering $700 billion loss in market value has raised alarms about the performance of the Vanguard Mega Cap Growth ETF, which has outperformed the S&P 500 since 2007 but now faces challenges as tech stocks underperform amid rising inflation and low consumer sentiment.
