Sure, how politicians vote on legislation and what they say on the campaign trail are the stuff of intense scrutiny. But that’s not the only thing people are following with today’s pols.
Retail investors are also paying close attention to their stock picks. Rep. Marjorie Taylor Greene is one such politician, and she’s been clicking the buy button in 2024, building out a robust portfolio.
It’s not only stocks that represent new holdings for the Republican congresswoman from Georgia. Greene has also demonstrated interest in four of Vanguard’s exchange-traded funds (ETFs):
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Vanguard Small-Cap ETF (NYSEMKT: VB)
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Vanguard Mid-Cap ETF (NYSEMKT: VO)
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Vanguard S&P 500 ETF (NYSEMKT: VOO)
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Vanguard FTSE Developed Markets ETF (NYSEMKT: VEA)
Except for her purchase of shares in the Vanguard S&P 500 ETF, which was valued between $15,001 and $50,000, Greene’s acquisitions of the Vanguard ETFs were each valued between $1,001 and $15,000.
The ABCs of Greene’s new ETFs
Consisting of 1,403 stocks with smaller market capitalizations, the Vanguard Small-Cap ETF represents a more aggressive investment, offering the potential of greater growth (along with higher risk) than some of the other Vanguard funds that she had purchased, since small-cap stocks often outperform their large-cap cousins.
With weightings of 22% and 16%, respectively, industrials and consumer discretionary stocks are the two most heavily represented sectors in the ETF. Distributions on a quarterly basis give the Vanguard Small-Cap ETF a current 30-day SEC yield of 1.4%.
Another fund that made its way onto Greene’s buy list was the Vanguard Mid-Cap ETF, which contains 316 stocks that have a median market capitalization of $31.8 billion. With the exposure to mid-cap stocks that Greene obtained, she gains another growth opportunity though she faces less risk compared to the Vanguard Small-Cap ETF.
Industrials, again, represent the greatest weighting in the fund, about 21%, while tech stocks are second with a 14.5% weighting. With her investment in the Vanguard Mid-Cap ETF, Greene further reinforces her passive income stream with the fund’s current 1.6% 30-day SEC yield.
Her most sizable investment was in the Vanguard S&P 500 ETF, which has the stated goal of tracking the return of the S&P 500 index. The fund gives her exposure to the largest of the mega-cap stocks, balancing out the exposure she has with the Small-Cap ETF and the Mid-Cap ETF.
Software stalwart Microsoft, for example, is the largest position, with a 7.2% weighting. Artificial intelligence (AI) powerhouse Nvidia and Apple have virtually equal weightings at 6.6%, while Amazon and Meta Platforms represent the fourth- and fifth-largest holdings, respectively.
Think that Greene is only interested in American investments? Think again. With her position in the Vanguard FTSE Developed Markets ETF, she gains exposure to global stocks (3,968 of them, to be exact) excluding American companies.
The ETF largely consists of stocks from the European and Pacific regions. European stocks make up the lion’s share of the fund with a 54% weighting, while the Pacific (Japan and Australia, mostly) represents a 36% weighting. It makes distributions on a quarterly basis and currently has a 12-month yield of 3.4%.
Could buying these Vanguard ETFs be a smart move right now?
Although it’s hardly wise to blindly follow the stock picks of others, investors would be well served in this case to buy any of these Vanguard ETFs if they align with their goals. For those interested in growth, the Vanguard Small-Cap ETF and Vanguard Mid-Cap ETF are both excellent options.
Likewise, the Vanguard SP 500 ETF is an excellent choice for broad exposure to the largest stocks trading on U.S. markets, and the FTSE Developed Markets ETF is a solid choice for international exposure.
With their extraordinarily low expense ratios, Vanguard ETFs reduce the amount investor pay in fees. Of the four Vanguard funds that Greene bought, the FTSE Developed Markets ETF has the highest expense ratio, at 0.06% — which is still extremely low.
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John Mackey, former CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool’s board of directors. Randi Zuckerberg, a former director of market development and spokeswoman for Facebook and sister to Meta Platforms CEO Mark Zuckerberg, is a member of The Motley Fool’s board of directors. Scott Levine has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Amazon, Apple, Meta Platforms, Microsoft, Nvidia, Vanguard Index Funds-Vanguard Mid-Cap ETF, Vanguard Index Funds-Vanguard Small-Cap ETF, Vanguard S&P 500 ETF, and Vanguard Tax-Managed Funds-Vanguard Ftse Developed Markets ETF. The Motley Fool recommends the following options: long January 2026 $395 calls on Microsoft and short January 2026 $405 calls on Microsoft. The Motley Fool has a disclosure policy.
Marjorie Taylor Greene Loves Vanguard ETFs; Here Are 4 She Bought in the First Half of 2024 was originally published by The Motley Fool
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