Top 3 Offensive ETFs - Minimalist and Frugalist

There are many ETFs for an offensive strategy. In this article, I have analyzed and compared, in my opinion, the top 3 offensive ETFs. 😊

Table of Contents

Recommended products

⚠️ This article is not investment advice. Investing can lead to financial loss. The information shared is based on my personal experience and research. However, further research is recommended to confirm the information in this article.

What is an ETF for an offensive stock market strategy?

Offensive ETF (or high-growth ETF) = Hold stocks that promote strong stock market growth over a long period.

In fact, an ETF tracks the performance of all the stocks it owns.

Note that when a shareholder holds shares, this means that he “owns” a part of the company (share) that he has purchased.

In this case, an aggressive ETF focuses on stocks known for their long-term market growth.

Why own an offensive ETF?

In my opinion, for a shareholder, it is better to have an aggressive long-term stock market strategy in order to make their money grow!

Indeed, we have concluded several times in this blog that an offensive stock market strategy allows you to obtain, over the long term, incredible annualized returns, in some cases, with a past return exceeding 10% per year on average.

Therefore, in order to increase your capital and benefit from compound interest, buying an offensive ETF is historically a good option.

The 3 best offensive ETFs?

Each shareholder will have preferences regarding the top 3 offensive ETFs.

In my opinion and experience, here are my 3 favorite growth ETFs:

VOO* = ETF that selects the 500 largest US stocks

MGK* = ETF that selects US Mega Cap stocks, i.e., US stocks with the largest market capitalization in the USA

VGT* = ETF that focuses on the best US technology stocks

In this article, we will understand why I chose these 3 offensive ETFs😊

Why is there no Nasdaq 100?

Some readers may wonder why I didn't list a Nasdaq ETF as an offensive ETF. The Nasdaq is a US stock index that tracks the 100 largest US stocks and is known for its high yield.

Note that I like the Nasdaq as an offensive stock market strategy. In my opinion, Nasdaq has a good portfolio and a good track record.

Actually, I'm not listing Nasdaq as a top 3 offensive ETF because I couldn't find any Nasdaq ETFs with accurate 10-year data. It's worth noting that I'm writing a comparative article. Therefore, clear and complex information is essential for comparing ETFs.

On the other hand, I noticed that the performance of the QQQ ETF (Nasdaq) and the MGK ETF (Mega Cap) are very similar in 5 years!

As we can see, the MGK ETF (in orange) and the QQQ ETF (in blue) follow each other almost identically for this period.

Therefore, since the gross yield is similar, I prefer to compare the MGK ETF because the Vanguard mutual fund provides more precise information to compare the ETFs in this article. However, note that the MGK ETF and the Nasdaq index have a similar yield over 5 years.

Which one historically has the best gross yield?

Let's start by analyzing the gross return, and at the end of this article we could make an estimate regarding the net return.

According to each ETF's official website, here is the annualized gross return over 10 years, between May 2015 and May 2025:

VGT = 19%
MGK = 16%
VOO = 12.8%

It's important to note that the gross returns over 10 years are very high. In fact, they're incredible!

Example with 10,000 USD investment

Here's a table to help you understand how much each ETF has returned to shareholders. I assumed a shareholder invested $10,000 10 years ago and hasn't added any money since. How much does each shareholder have per ETF?

Invest	Gross annualized return over 10 years	Total gross return
VGT	19%	56,946 USD
MGK	16%	44,144 USD
VOO	12,8	33,349 USD

Impressive isn't it?

Best gross yield -> VGT ETF

Which one is more diverse?

Diversification will depend on the sensitivity of each investor.

Here is a summary regarding the diversification of each investment:

VGT = US stocks
MGK = US stocks
VOO = US stocks

As a result, all three ETFs only invest in the United States.

If we analyze the number of shares, here is the number of shares per ETF:

VGT = 319 shares
MGK = 69 shares
VOO = 506 shares

We conclude that the VOO ETF holds the most shares.

Best diversification -> VOO ETF

Which one is the safe one?

All 3 ETFs belong to the Vanguard investment fund.

According to artificial intelligence, in the event of Vanguard's bankruptcy, Vanguard is supposed to transfer the client's securities to another trading account. I can't confirm this information, but it's positive.

In my opinion, Vanguard is an excellent financial investment fund. Moreover, Vanguard is known for charging low commissions.

Risk of bankruptcy or loss of money -> equivalent

Which one is more passive?

The 3 ETFs are tied.

Indeed, once invested in the ETF, the shareholder does not have to do anything except receive dividends every 3 months and declare taxes. In reality, it is a very passive investment for the client. 😉

Investment Passivity -> equivalent

Which one is easier to invest in?

The 3 are tied.

To invest in an ETF, all you need is an easy-to-use trading account.

The easiest to invest -> equivalent

Which one takes the least management time?

The 3 ETFs are investments that take less than 5 minutes per month to manage.

The one that takes the least management time -> The 3 (5 minutes per month)

The investment with the least volatility?

In reality, volatility depends on the yield. The higher the yield, the higher the volatility.

Therefore, the ETF with the least volatility is in the inverse order of return. That is:

Not to mention, the VOO ETF holds the most shares of the 3 ETFs, which allows for less price fluctuations compared to the MGK ETF and the VGT ETF.

The least volatile in performance -> ETF VOO

Which one distributes better dividends?

According to each ETF's website, here's a summary:

VGT = 0.5% in dividends per year on average
MGK = 0.5% in dividends per year on average
VOO = 1.4% in dividends per year on average

The best in dividend distribution -> ETF VOO

Which one distributes dividends most often?

In reality, all 3 ETFs distribute dividends 4 times a year. And at very similar times 😊

The one that distributes dividends most frequently -> The 3 ETFs (every 3 months)

Which has a better non-dividend yield?

This is the VGT ETF, followed by the MGK ETF.

The VOO ETF is well behind.

Therefore, here is the ranking:

VGT (approximately 18.5% annualized over 10 years)
MGK (approximately 15.5% annualized over 10 years)
VOO (approximately 11.4% annualized over 10 years)

Best yield excluding dividends -> ETF VGT

Which one is better tax-wise in Switzerland?

As for the taxation of a growth ETF that distributes dividends, it is quite simple to understand in Switzerland.

The return on the stock = very little tax
Dividend yield = 15% to 35% depending on the ETF country jurisdiction

All three ETFs are domiciled in the US. Therefore, the initial tax liability is 30%. However, once the W-8BEN form is completed, the tax liability will be 15%.

Without forgetting, once the tax return is completed, the tax will be less than 15%.

US dividends	% imposed on the shareholder by the Swiss Confederation
Initial amount levied by the Swiss state when the shareholder receives the dividend	30%
Completed W8BEN form	~~30%~~ 15%
Declaration of US dividends in Swiss taxes (Vaudtax for example)	~~15%~~ less than 15%

Therefore, since the MGK and VGT ETFs receive the least dividends of the three ETFs, they are automatically the least taxed ETFs!

Here is the ranking:

VGT = Less than 15% on 0.5% of dividends
MGK = Less than 15% on 0.5% of dividends
VOO = Less than 15% on 1.4% of dividends

The best tax-wise -> ETF VGT and ETF MGK

Which one has the most commissions (excluding taxes)?

The fees for an ETF are:

TER (ETF management fees)
Stock Market Account Fees

Note that the TER is the commission that the investment fund requests in order to pay for the operation of the ETF.

As for the trading account fees, with a cheap trading account (e.g. Yuh or Interactive Brokers) the fees are around 0.5%.

Therefore, here are the total commissions for purchasing ETFs.

VGT = 0.09% of TER + 0.5% for stock market purchase = 0.59%

MGK = 0.07% of TER + 0.5% for stock market purchase = 0.57%

VOO = 0.03% OF TER + 0.5% for stock market purchase = 0.53%

In conclusion, regarding commissions, here is the ranking:

VOO = 0.53%
MGK = 0.57%
VGT = 0.59%

It is worth noting that the difference in commissions between the 3 ETFs is very minimal. In fact, only 0.06%.

The least expensive -> equivalent

Which one has the best net return?

After writing this article, it is possible to estimate your net return. Although past performance is no guarantee of future performance!

Note that this table should be taken as an estimate and not as an official table.

Invest	Gross yield	Taxation in Switzerland	Commissions	Total net return (estimate)
VGT	19%	0.10% approximately (15% of 0.5%)	0.59%	18,3% annualized
MGK	16%	0.10'% approximately (15% of 0.5%)	0.57%	15,3% annualized
VOO	12,8%	0.21% approximately (15% of 1.4%)	0.53%	11,2% annualized

Example with 10,000 USD invested

I created an example based on the estimated net return of each investment. I assumed each investor invested $10,000 10 years ago. What will the investor's net return be today? (Not including inflation)

Invest	Total net return in 10 years without inflation
VGT	53,684 USD
MGK	41,523 USD
VOO	28,910 USD

Therefore, with this example, in 10 years, the VGT ETF is more profitable by several thousand CHF compared to the MGK ETF and the VOO ETF. It's incredible!

Indeed, in this example, in 10 years, the VGT ETF earns USD 12,000 more than the VYM ETF and almost USD 25,000 more than the VOO ETF.

The best net return -> The VGT ETF

Conclusion

Let’s analyze together the summary of this article, the top 3 offensive ETFs! 😊

	ETF VOO, ETF MGK or ETF VGT?
The best gross yield (historically)?	VGT ETF
The most diverse?	ETF VOO
The safest?	Similar
The most passive?	Similar (Very passive)
The easiest way to invest?	Similar (Very simple)
The one that takes the least management time per month?	Similar (5 minutes per month)
The investment with the least volatility?	ETF VOO
The best in dividend distribution?	ETF VOO
Which one distributes dividends most often?	Similar (every 3 months)
The best yield without counting dividends?	VGT ETF
The best tax situation in Switzerland?	ETF VGT & ETF MGK
The one with the least commissions (excluding taxes)?	Similar
The best net return (historically)	VGT ETF

👉 The VGT ETF is (historically) the most profitable ETF compared to the VOO ETF and the MGK ETF over the long term.

On the other hand, the VOO ETF is historically more stable and it is the ETF that holds more US stocks in its portfolio.

The MGK ETF, to summarize in broad terms, is halfway between the VOO ETF and the VGT ETF.

Summary of the top 3 ETFs + Nasdaq 100 ETF (QQQ)

	ETF VOO	ETF MGK	ETF QQQ	VGT ETF
Annualized gross return (dividends included)	12,8%	16%	16,5%	19%
Number of shares	500	319	100	69
Investment country	USA	USA	USA	USA
Sectoral or diversified	Very Diverse	Diversified	Diversified	Sectoral (Technology)
Taxation (in Switzerland)	Good	Very good	Very good	Very good
Management time	5 minutes per month	5 minutes per month	5 minutes per month	5 minutes per month
TER (ETF management commission)	0.03%	0.07%	0.20%	0.09%
Cheap trading account fees	0.5%	0.5%	0.5%	0.5%
Expected net return without inflation (based on past returns before 2024)	7-11%	11-15%	11-16%	14-18%

My opinion on the top 3 offensive ETFs

All three ETFs have impressive past performance! Primarily the MGK and VGT ETFs. These are great options for shareholders looking to grow their capital over the long term!

However, it's worth noting that aggressive stock market investments have high volatility. For example, it's no surprise that returns can sometimes drop by 10% in just one month.

Therefore, if a shareholder owns an aggressive ETF, they must accept that the ETF's return can sometimes be very negative! But on the one hand, if the shareholder is patient, they risk seeing their investment double every 5 years.

In my opinion, shareholders who are looking for:

A very good long-term return
Good taxation
An ETF with fewer than 350 US stocks
Accept very high price fluctuation
Want to focus on the tech sector

👉 In this case, the MGK ETF should be considered a good option.

Shareholders seeking:

A very good long-term return
Good taxation
An ETF of between 100 and 350 US stocks
Accept high price fluctuation
An ETF with diversified sectors

👉 In this case, the QQQ or MGK ETF should be considered a good option.

On the other hand, shareholders who prefer:

Average dividends every 3 months
Good long-term performance
A “moderate” price fluctuation
An ETF with over 450 US stocks
An ETF with highly diversified sectors

👉 In this case, the VOO ETF is a good option.

I want to say that the 3 offensive ETFs mentioned have impressive returns! It will be difficult to find passive investments, requiring less than 5 minutes of management per month, that are as profitable! However, past performance does not predict future performance.

The top 3 offensive ETFs!

Subscribe for the latest news

You have a frugalist or minimalist project and you want a training? Click ”here”.

My pages

Lastest Post

How does this blog live?

Overall, this blog lives on sharing a frugal and minimalist lifestyle.

For a question of transparency towards the readers. All recommended products are in order to make life cheaper, simpler and to promote the essentials.

Basically, my only income with this blog comes:

Trainings that I realize
Promo codes for the products I use
Donations that readers make in exchange for neutral information.

About me

I decided to create this blog to develop and help readers who are looking for a simpler and more economical life.

Compared to before, I was a person who consumed a lot until the day I realized that my consumption made me sadder and poorer 😑

Now I prefer the minimum of my needs to be happy and achieve my financial freedom.

Without realizingI started to focus on saving and investing to depend on a boss for as little time as possible and to speed up my personal projects.

As a result, I am getting richer in a way that I never imagined since I have an average salary in Switzerland.

It is for this purpose that I decided to create this blog. In order to share and learn with other people who seek freedom and simplicity 😉

Are you rather minimalist or frugal Jonny?

I am as minimalist as I am frugalist. However, there are situations where I lean more towards an art of life.

To conclude, I think the most important thing is to feel comfortable in your lifestyle 😊

The top 3 offensive ETFs

Minimalism and Frugalism

Your basket (items: 0)