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What does fidelity have with comparison to mgk

6/5/2025 10:14pm

``` The deep research logic is organized as follows: Okay, let's tackle this question. The user is asking how Fidelity compares to the Vanguard Mega Cap Growth ETF (MGK). First, I need to understand what exactly they're looking for. The question is pretty broad, so I should break it down into key areas like investment strategy, fees, performance, and maybe product offerings. Looking at the references provided, Fidelity has a lot of data. For example, their assets under management (AUM) hit $5.9 trillion in 2024 . They also launched a Managed Futures ETF recently . On the other hand, MGK is a specific ETF from Vanguard, which is a passive fund tracking the MSCI US Large Cap Growth Index [^7, ^11, ^17]. The user's profile mentions they're interested in high-risk tech stocks, ETFs, and have a short-term horizon. So, I should highlight how Fidelity's active management and product diversity might cater to their interests compared to Vanguard's passive approach. First, let's compare the investment strategies. Fidelity uses active management, which means they pick stocks based on research and market analysis. They have a wide range of products, including ETFs, mutual funds, and even alternative investments like crypto [^1, ^2]. MGK, being a Vanguard ETF, is passive, just tracking an index. The user might appreciate Fidelity's ability to adapt quickly to market trends, especially in tech, which they're interested in. Next, fees. Fidelity's funds have higher expense ratios compared to Vanguard's ETFs. For example, Fidelity's Mega Cap Stock Fund (FGRTX) has a 0.61% expense ratio , while MGK is 0.07% [^11, ^21]. The user might be okay with higher fees if they expect better performance, but it's a trade-off. Performance-wise, Fidelity's active funds have shown mixed results. The Mega Cap Fund (FGRTX) underperformed MGK over the past 10 years . However, Fidelity's recent AUM growth suggests they're attracting assets, possibly due to their diversified offerings and market timing . The user might be interested in whether Fidelity's active management can outperform during tech rallies, which they seem to follow closely. Product offerings are another key point. Fidelity has a broader range, including alternative investments and sector-specific ETFs [^1, ^2]. The user follows tech stocks, so Fidelity's tech-focused ETFs or their Managed Futures ETF could be relevant. MGK is just one ETF, but it's highly concentrated in tech stocks like Apple, Microsoft, and NVIDIA , which aligns with the user's interest in the tech sector. Risk profiles also differ. Active management can lead to higher volatility, which the user might be comfortable with given their high-risk tolerance. MGK, being passive, might offer more stability but less potential for outperformance. The user's interest in high-risk tech stocks suggests they might prefer Fidelity's active approach for potential higher returns, even with the risk. I should structure the answer by first stating the conclusion, then breaking down each comparison point with data from the references. Use tables to present the data clearly, as per the format requirements. Also, include the visualization for the query mentioned in the references [^15, ^17]. Make sure to cite each reference properly and keep the language engaging with emojis to match the user's preferences. ``` ### 🎯 **Conclusion** Fidelity Investments and the Vanguard Mega Cap Growth ETF (MGK) cater to different investment strategies and risk profiles. Fidelity excels in **active management** and **diversified product offerings**, while MGK represents **passive, low-cost exposure** to large-cap growth stocks. Here’s a detailed comparison: --- ### 📊 **Key Comparison: Fidelity vs. MGK** | **Aspect** | **Fidelity** | **Vanguard MGK** | |---------------------------|------------------------------------------------------------------------------|----------------------------------------------------------------------------------| | **Investment Strategy** | Active management with **sector-specific ETFs** (e.g., tech, crypto) | Passive indexing of the **MSCI US Large Cap Growth Index** | | **Expense Ratio** | Higher (e.g., 0.61% for Fidelity Mega Cap Fund ) | Lower (0.07% for MGK ) | | **AUM** | $5.9T (2024) | $6.34B (as of 2025) | | **Tech Exposure** | Broad tech coverage via ETFs (e.g., Fidelity MSCI Info Tech ETF ) | 60% tech allocation in MGK | | **Risk Profile** | Higher volatility due to active stock selection | Moderate volatility as a passive ETF | --- ### 📊 **Detailed Analysis** #### 1. **Investment Strategy** - **Fidelity**: Focuses on **active management** with a mix of ETFs, mutual funds, and alternative investments. For example, Fidelity launched the **Managed Futures ETF (FFUT)** and expanded into **cryptocurrencies** . This aligns with your interest in high-risk tech and AI sectors. - **MGK**: A **passive ETF** tracking the MSCI US Large Cap Growth Index, offering **low-cost exposure** to large-cap growth stocks like Apple (AAPL), Microsoft (MSFT), and NVIDIA (NVDA) . #### 2. **Fees** - **Fidelity**: Higher fees due to active management. For instance, the Fidelity Mega Cap Stock Fund (FGRTX) charges 0.61% . - **MGK**: Extremely low fees (0.07%) , making it a cost-effective option for long-term holding. #### 3. **Performance** - **Fidelity**: Mixed results. The Fidelity Mega Cap Fund (FGRTX) underperformed MGK over the past 10 years (13.29% vs. 16.36% annualized returns) . However, Fidelity’s active funds may offer **better risk-adjusted returns** during market volatility . - **MGK**: Consistent performance tied to the broader market. The ETF has a **Sharpe Ratio of 0.74** , indicating moderate risk-adjusted returns. #### 4. **Tech Sector Exposure** - **Fidelity**: Offers **sector-specific ETFs** like the Fidelity MSCI Information Technology Index ETF (FTEC) , aligning with your interest in tech stocks. - **MGK**: Heavily weighted in tech (60% of assets) , making it a **pure-play on large-cap tech growth**. #### 5. **Risk Profile** - **Fidelity**: Higher risk due to active stock selection and market timing. For example, Fidelity’s Mega Cap Fund had a **max drawdown of -56.84%** . - **MGK**: Lower risk as a passive ETF, with a **max drawdown of -48.36%** . --- ### 📊 **Which Fits Your Profile?** - **Choose Fidelity** if you want **active management** and exposure to **high-risk tech sectors** (e.g., AI, crypto). Fidelity’s diverse product lineup (ETFs, mutual funds, alternatives) aligns with your interest in **high-risk, high-reward investments**. - **Choose MGK** if you prefer **low-cost, passive exposure** to large-cap tech growth stocks. It’s ideal for a **short-term tech rally** but lacks the flexibility of Fidelity’s active funds. --- |code|Ticker|Name|Management Style|Expense Ratio|Date|Assets Under Management|market_code| |---|---|---|---|---|---|---|---| |MGK|MGK.P|Vanguard Mega Cap Growth ETF|Passive|0.07|20240605|2.0196041349E10|169| |FXA|FXA.P|Invesco CurrencyShares Australian Dollar Trust|Passive|0.4|20240605|6.9099205E7|169| |MGK|MGK.P|Vanguard Mega Cap Growth ETF|Passive|0.07|20240606|2.0242793958E10|169| |FXA|FXA.P|Invesco CurrencyShares Australian Dollar Trust|Passive|0.4|20240606|6.8914769E7|169| |MGK|MGK.P|Vanguard Mega Cap Growth ETF|Passive|0.07|20240607|2.0316833735E10|169| |FXA|FXA.P|Invesco CurrencyShares Australian Dollar Trust|Passive|0.4|20240607|6.9141377E7|169| |MGK|MGK.P|Vanguard Mega Cap Growth ETF|Passive|0.07|20240610|2.0460175804E10|169| |FXA|FXA.P|Invesco CurrencyShares Australian Dollar Trust|Passive|0.4|20240610|6.8535771E7|169| |MGK|MGK.P|Vanguard Mega Cap Growth ETF|Passive|0.07|20240611|2.0715636063E10|169| |FXA|FXA.P|Invesco CurrencyShares Australian Dollar Trust|Passive|0.4|20240611|6.8596492E7|169|