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Thesis
The Vanguard Mega Cap Value ETF (NYSEARCA:MGV) is an equities exchange traded fund from the behemoth asset manager Vanguard. The fund has over $6 billion in assets under management, and aims to track the performance of a benchmark index that measures the investment return of the largest-capitalization value stocks in the United States. The respective index is the CRSP US Mega Cap Value Index, which provides for a diversified exposure to the largest value stocks in the U.S. market.
2023 has been the year of the tech mega-caps, with the sister fund Vanguard Mega Cap Index Fund (MGC) up over 28%. MGC is an expression of large growth mega-caps, and has been propelled forward by the outstanding performance of the ‘Magnificent 7’. MGV on the other hand has had a more muted performance, being up only 6.7% this year. Tech has outshined every other investment this year, but we feel 2024 will be different, with the baton passed to value equities.
