Comparative Analysis of MGK and SPY Investments
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 1h ago
0mins
Should l Buy NVDA?
Source: Fool
- Expense Ratio Comparison: MGK's expense ratio stands at 0.07%, slightly lower than SPY's 0.09%, potentially allowing investors to save on costs over the long term, thereby enhancing overall returns.
- Return and Risk Analysis: While MGK's growth of $1,892 over five years slightly surpasses SPY's $1,805, its maximum drawdown of -36.02% indicates significantly higher volatility, necessitating careful risk assessment by investors.
- Portfolio Composition: MGK's portfolio is heavily weighted with 55% in technology stocks, primarily holding Nvidia, Apple, and Microsoft, whereas SPY offers broader diversification with about 35% in tech, providing greater stability during market fluctuations.
- Investment Strategy Choice: For investors seeking high returns, MGK may be a suitable option, but for those prioritizing stability and diversification, SPY offers better risk management and return balance.
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Analyst Views on NVDA
Wall Street analysts forecast NVDA stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for NVDA is 264.97 USD with a low forecast of 200.00 USD and a high forecast of 352.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
41 Analyst Rating
39 Buy
1 Hold
1 Sell
Strong Buy
Current: 171.880
Low
200.00
Averages
264.97
High
352.00
Current: 171.880
Low
200.00
Averages
264.97
High
352.00
About NVDA
NVIDIA Corporation is a full-stack computing infrastructure company. The Company is engaged in accelerated computing to help solve the challenging computational problems. The Company’s segments include Compute & Networking and Graphics. The Compute & Networking segment includes its Data Center accelerated computing platforms and artificial intelligence (AI) solutions and software; networking; automotive platforms and autonomous and electric vehicle solutions; Jetson for robotics and other embedded platforms, and DGX Cloud computing services. The Graphics segment includes GeForce GPUs for gaming and PCs, the GeForce NOW game streaming service and related infrastructure, and solutions for gaming platforms; Quadro/NVIDIA RTX GPUs for enterprise workstation graphics; virtual GPU software for cloud-based visual and virtual computing; automotive platforms for infotainment systems, and Omniverse Enterprise software for building and operating industrial AI and digital twin applications.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
Vista Equity Partners Leads $350 Million Funding in AI Chip Startup SambaNova Systems
- Funding Milestone: Vista Equity Partners leads a significant funding round of over $350 million for SambaNova Systems, marking a strategic shift as it ventures into the AI chip sector, traditionally focused on enterprise software.
- Strong Investor Backing: Intel plans to invest approximately $100 million, potentially increasing to $150 million, indicating confidence in SambaNova's market potential for AI applications and reflecting a surge in demand for AI hardware.
- Intensifying Market Competition: The funding aims to position SambaNova against market leader Nvidia, particularly in the fast-evolving AI inference chip market, highlighting a growing investor interest in AI hardware amid competitive pressures.
- Company Growth Dynamics: Since its founding in 2017, SambaNova has raised over $1 billion, and despite facing challenges and layoffs in 2024, it recently surpassed its sales targets for the fiscal year, showcasing its potential in AI inference and cloud services.
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Comparative Analysis of MGK and SPY Investments
- Expense Ratio Comparison: MGK's expense ratio stands at 0.07%, slightly lower than SPY's 0.09%, potentially allowing investors to save on costs over the long term, thereby enhancing overall returns.
- Return and Risk Analysis: While MGK's growth of $1,892 over five years slightly surpasses SPY's $1,805, its maximum drawdown of -36.02% indicates significantly higher volatility, necessitating careful risk assessment by investors.
- Portfolio Composition: MGK's portfolio is heavily weighted with 55% in technology stocks, primarily holding Nvidia, Apple, and Microsoft, whereas SPY offers broader diversification with about 35% in tech, providing greater stability during market fluctuations.
- Investment Strategy Choice: For investors seeking high returns, MGK may be a suitable option, but for those prioritizing stability and diversification, SPY offers better risk management and return balance.
See More
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- Cost and Yield Comparison: VOO has a lower expense ratio of 0.03% compared to MGK's 0.07%, making VOO more cost-effective, while VOO's dividend yield of 1.13% surpasses MGK's 0.35%, appealing to income-focused investors.
- Risk and Return Analysis: Over the past five years, VOO's maximum drawdown was -24.53%, while MGK's was -36.02%, indicating MGK's higher vulnerability to market fluctuations, despite MGK achieving higher total returns over one and five years.
- Portfolio Composition: MGK holds only 60 stocks with 55% allocated to technology, whereas VOO holds 504 stocks, providing broader diversification with 35% in tech, which enhances VOO's risk management capabilities.
- Market Performance Potential: MGK's top holdings, including Nvidia, Apple, and Microsoft, account for nearly 36% of its assets, while the same stocks represent about 21% of VOO, suggesting that MGK may yield higher returns when these stocks perform well but also carries greater risk.
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- Risk and Return Analysis: Over the past five years, VOO experienced a maximum drawdown of -24.53%, compared to QQQ's -35.12%, indicating VOO's superior risk management during market downturns, appealing to stability-seeking investors.
- Portfolio Composition: QQQ's portfolio is heavily weighted with 53% in technology stocks, primarily holding companies like Nvidia, Apple, and Microsoft, whereas VOO includes 504 stocks with 35% in technology, providing broader sector diversity for investors seeking diversification.
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- Funding Milestone: Vista Equity Partners leads a significant funding round of over $350 million for SambaNova Systems, marking a strategic shift as it ventures into the AI chip sector, traditionally focused on enterprise software.
- Strong Investor Backing: Intel plans to invest approximately $100 million, potentially increasing to $150 million, indicating confidence in SambaNova's market potential for AI applications and reflecting a surge in demand for AI hardware.
- Intensifying Market Competition: The funding aims to position SambaNova against market leader Nvidia, particularly in the fast-evolving AI inference chip market, highlighting a growing investor interest in AI hardware amid competitive pressures.
- Company Growth Dynamics: Since its founding in 2017, SambaNova has raised over $1 billion, and despite facing challenges and layoffs in 2024, it recently surpassed its sales targets for the fiscal year, showcasing its potential in AI inference and cloud services.
See More
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- Cost and Return Comparison: ProShares' SSO and QLD charge expense ratios of 0.87% and 0.95%, respectively, while QLD's one-year return of 29.85% surpasses SSO's 23.67%, yet its higher fees may deter cost-conscious investors.
- Risk and Volatility Analysis: SSO's maximum drawdown stands at -46.73%, compared to QLD's -63.68%, indicating that QLD carries greater risk in volatile markets, although it also offers higher potential returns, appealing to risk-tolerant investors.
- Portfolio Composition: QLD allocates 53% to technology stocks, with top holdings including Nvidia, Apple, and Microsoft, while SSO provides a broader sector mix with 35% in technology and 503 holdings, showcasing SSO's advantage in diversification.
- Investor Strategy Recommendations: Given that leveraged ETFs are suited for short-term investments, investors should be mindful of daily leverage resets affecting returns; QLD is ideal for those seeking high-risk, high-reward opportunities, while SSO may attract those looking for relatively stable leveraged investments.
See More
Comparative Analysis of MGK and SPY Investments
- Expense Ratio Comparison: MGK's expense ratio stands at 0.07%, slightly lower than SPY's 0.09%, potentially allowing investors to save on costs over the long term, thereby enhancing overall returns.
- Return and Risk Analysis: While MGK's growth of $1,892 over five years slightly surpasses SPY's $1,805, its maximum drawdown of -36.02% indicates significantly higher volatility, necessitating careful risk assessment by investors.
- Portfolio Composition: MGK's portfolio is heavily weighted with 55% in technology stocks, primarily holding Nvidia, Apple, and Microsoft, whereas SPY offers broader diversification with about 35% in tech, providing greater stability during market fluctuations.
- Investment Strategy Choice: For investors seeking high returns, MGK may be a suitable option, but for those prioritizing stability and diversification, SPY offers better risk management and return balance.
See More
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- Cost and Yield Comparison: VOO has a lower expense ratio of 0.03% compared to MGK's 0.07%, making VOO more cost-effective, while VOO's dividend yield of 1.13% surpasses MGK's 0.35%, appealing to income-focused investors.
- Risk and Return Analysis: Over the past five years, VOO's maximum drawdown was -24.53%, while MGK's was -36.02%, indicating MGK's higher vulnerability to market fluctuations, despite MGK achieving higher total returns over one and five years.
- Portfolio Composition: MGK holds only 60 stocks with 55% allocated to technology, whereas VOO holds 504 stocks, providing broader diversification with 35% in tech, which enhances VOO's risk management capabilities.
- Market Performance Potential: MGK's top holdings, including Nvidia, Apple, and Microsoft, account for nearly 36% of its assets, while the same stocks represent about 21% of VOO, suggesting that MGK may yield higher returns when these stocks perform well but also carries greater risk.
See More
US Stocks Surge, Dow Hits All-Time High
- Dow Hits Record High: The Dow Jones Industrial Average surged 2.47% to reach an all-time high, reflecting market optimism about economic recovery, particularly amid strong rebounds in tech and chipmaker stocks.
- Consumer Confidence Rises: The University of Michigan's consumer sentiment index unexpectedly increased to 57.3, surpassing expectations of 55.0, indicating enhanced consumer confidence that could drive future spending.
- Bitcoin Rebounds: Bitcoin surged over 11% from a 1.25-year low, lifting cryptocurrency-exposed stocks and signaling renewed investor interest and confidence in crypto assets.
- Strong Corporate Earnings: Over 79% of S&P 500 companies exceeded earnings expectations, with S&P earnings growth projected at 8.4% for Q4, providing robust support for the market and indicating ongoing improvement in corporate profitability.
See More
Comparative Analysis of VOO and QQQ ETFs
- Cost and Yield Comparison: VOO's expense ratio stands at 0.03%, significantly lower than QQQ's 0.18%, while VOO offers a dividend yield of 1.13%, making it more attractive for fee-conscious and income-focused investors.
- Risk and Return Analysis: Over the past five years, VOO experienced a maximum drawdown of -24.53%, compared to QQQ's -35.12%, indicating VOO's superior risk management during market downturns, appealing to stability-seeking investors.
- Portfolio Composition: QQQ's portfolio is heavily weighted with 53% in technology stocks, primarily holding companies like Nvidia, Apple, and Microsoft, whereas VOO includes 504 stocks with 35% in technology, providing broader sector diversity for investors seeking diversification.
- Market Performance Differences: Although QQQ has outperformed VOO in both 12-month and five-year total returns, its higher volatility and risk may not suit all investors, making the choice dependent on individual investment goals and risk tolerance.
See More
