MGK vs VYM
MGK vs VYM
Vanguard Mega Cap Growth ETF vs Vanguard High Dividend Yield ETF
Quick Verdict
VYM has a lower expense ratio. VYM delivered stronger 1-year returns. VYM offers more diversification with 558 holdings.
Side-by-Side Comparison
| Metric | MGK | VYM | Winner |
|---|---|---|---|
| Expense Ratio | 0.05% | 0.04% | |
| AUM | $33.1B | $79.0B | |
| Dividend Yield | 0.44% | 2.86% | |
| Holdings | 61 | 568 | |
| YTD Return | +10.24% | +15.57% | |
| 1Y Return | +19.65% | +25.99% | |
| 3Y Return (annualized) | +24.64% | +18.02% | |
| 5Y Return (annualized) | +14.01% | +12.71% | |
| Volatility (annualized) | 17.7% | 14.6% | |
| Max Drawdown | -48.9% | -58.8% | |
| Fund Family | Vanguard (US) | Vanguard (US) | |
| Category | Equity | Equity | |
| Inception | Dec 17, 2007 | Nov 10, 2006 |
MGK vs VYM Performance
Vanguard Mega Cap Growth ETF (MGK) is a ETF from Vanguard (US) and Vanguard High Dividend Yield ETF (VYM) is a ETF from Vanguard (US). Over the past year MGK returned +19.65% while VYM returned +25.99%. Year to date, MGK is up 10.24% versus a gain of 15.57% for VYM.
Over three years, MGK compounded at +24.64% per year against +18.02% for VYM; over five years the annualized figures are +14.01% and +12.71% respectively. Across the full 19-year window we track, MGK has the edge at +12.66% annualized vs +7.07%. 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 14.6% for VYM. 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 -58.8% for VYM. 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 0.76. They usually move together, but the gap leaves some room for diversification.
Fees and Cost Over Time
MGK charges 0.05% per year while VYM charges 0.04%. On a $10,000 position that is $5 vs $4 annually, a gap of $1 per year that compounds over a long holding period. On income, MGK currently yields 0.44% against 2.86% for VYM.
Holdings Overlap
MGK and VYM share 3 holdings out of 610 unique holdings combined, representing a 5.2% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Frequently Asked Questions
Which is cheaper, MGK or VYM?
MGK has an expense ratio of 0.05% while VYM charges 0.04%. VYM is the cheaper option. On a $10,000 investment, that is $1 per year of difference.
Which performed better, MGK or VYM?
Over the past year MGK returned +19.65% vs +25.99% for VYM, so VYM leads on 1-year performance. Over the longest common window we track (19 years), MGK annualized +12.66% vs +7.07% for VYM. Past performance does not guarantee future results.
Which is riskier, MGK or VYM?
MGK has been the more volatile fund at 17.7% annualized versus 14.6% for VYM. Worst drawdown: MGK -48.9% vs VYM -58.8%.
Should I hold both MGK and VYM?
MGK and VYM have a monthly-return correlation of 0.76, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between MGK and VYM?
MGK and VYM share 3 common holdings with a 5.2% weight overlap. Combined, they hold 610 unique securities.
Which pays a higher dividend, MGK or VYM?
MGK yields 0.44% while VYM yields 2.86%, so VYM currently pays the higher dividend yield.
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