MGK vs VUG

Quick Verdict

VUG has a lower expense ratio. MGK delivered stronger 1-year returns. VUG offers more diversification with 146 holdings.

Lower Fees: VUGHigher Returns: MGKMore Diversified: VUG

Side-by-Side Comparison

MetricMGKVUGWinner
Expense Ratio0.05%0.03%
AUM$33.1B$223.2B
Dividend Yield0.44%0.47%
Holdings61155
YTD Return+7.60%+7.70%
1Y Return+16.78%+15.68%
3Y Return (annualized)+23.90%+23.30%
5Y Return (annualized)+13.48%+12.57%
Volatility (annualized)17.7%16.5%
Max Drawdown-48.9%-51.4%
Fund FamilyVanguard (US)Vanguard (US)
CategoryEquityEquity
InceptionDec 17, 2007Jan 26, 2004

MGK vs VUG Performance

Vanguard Mega Cap Growth ETF (MGK) is a ETF from Vanguard (US) and Vanguard Growth ETF (VUG) is a ETF from Vanguard (US). Over the past year MGK returned +16.78% while VUG returned +15.68%. Year to date, MGK is up 7.60% versus a gain of 7.70% for VUG.

Over three years, MGK compounded at +23.90% per year against +23.30% for VUG; over five years the annualized figures are +13.48% and +12.57% respectively. Across the full 19-year window we track, MGK has the edge at +12.51% annualized vs +11.18%. Past performance does not guarantee future results.

Risk: Volatility and Drawdowns

MGK has been the more volatile fund, with annualized monthly volatility of 17.7% compared with 16.5% for VUG. Lower volatility generally means a smoother ride, though it often comes with lower long-run returns.

The deepest peak-to-trough decline in our data was -48.9% for MGK and -51.4% for VUG. Drawdown depth is worth weighing if you expect to sell during market stress rather than ride it out.

The two funds' monthly returns correlate at 1.00. They move almost in lockstep, so holding both mostly duplicates the same exposure.

Fees and Cost Over Time

MGK charges 0.05% per year while VUG charges 0.03%. On a $10,000 position that is $5 vs $3 annually, a gap of $2 per year that compounds over a long holding period. On income, MGK currently yields 0.44% against 0.47% for VUG.

Holdings Overlap

84.8%overlap

MGK and VUG share 54 holdings out of 147 unique holdings combined, representing a 84.8% weight overlap.

High overlap means holding both may not provide much additional diversification.

Top Shared Holdings

StockWeight in MGKWeight in VUGDifference
NVDA13.23%12.60%0.63%
AAPL12.13%11.64%0.49%
MSFT7.48%7.60%0.12%
GOOGLProProPro
GOOGProProPro
AMZNProProPro
AVGOProProPro
METAProProPro
TSLAProProPro
LLYProProPro
See all 10 holdings MGK shares with VUG
Exact weights in each fund and the difference, for every overlapping position.
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Frequently Asked Questions

Which is cheaper, MGK or VUG?

MGK has an expense ratio of 0.05% while VUG charges 0.03%. VUG is the cheaper option. On a $10,000 investment, that is $2 per year of difference.

Which performed better, MGK or VUG?

Over the past year MGK returned +16.78% vs +15.68% for VUG, so MGK leads on 1-year performance. Over the longest common window we track (19 years), MGK annualized +12.51% vs +11.18% for VUG. Past performance does not guarantee future results.

Which is riskier, MGK or VUG?

MGK has been the more volatile fund at 17.7% annualized versus 16.5% for VUG. Worst drawdown: MGK -48.9% vs VUG -51.4%.

Should I hold both MGK and VUG?

MGK and VUG have a monthly-return correlation of 1.00, so they move almost identically. Holding both adds little diversification - most investors pick one, usually on fees or the specific index tracked.

What is the holdings overlap between MGK and VUG?

MGK and VUG share 54 common holdings with a 84.8% weight overlap. Combined, they hold 147 unique securities.

Which pays a higher dividend, MGK or VUG?

MGK yields 0.44% while VUG yields 0.47%, so VUG currently pays the higher dividend yield.

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