Discover how the differences in focus, volatility, and return potential between these two Vanguard ETFs cater to various investment needs.
The Vanguard Mega Cap Growth ETF (MGK +2.15%) and the Vanguard S&P 500 ETF (VOO +1.95%) are both aimed at those wanting exposure to large U.S. companies, yet they have distinct strategies. While MGK focuses on the largest growth stocks, VOO encompasses the full S&P 500.
This analysis emphasizes key differences in fees, performance, risk factors, and overall composition, helping to clarify which fund might attract different types of investors.
Cost and Size Snapshots
| Metric | VOO | MGK |
|---|---|---|
| Provider | Vanguard | Vanguard |
| Expense Ratio | 0.03% | 0.07% |
| 1-Year Return (as of February 2, 2026) | 15.60% | 16.88% |
| Dividend Yield | 1.13% | 0.35% |
| Beta (monthly over 5 years) | 1.00 | 1.20 |
| AUM | $839 billion | $32 billion |
Beta indicates price volatility relative to the S&P 500, while the one-year return reflects total returns for the succeeding 12 months.
VOO boasts a lower expense ratio and slightly more appealing rates. Additionally, its higher dividend yield makes it an attractive choice for investors focusing on income.
Analyzing Performance and Risk
| Metric | VOO | MGK |
|---|---|---|
| Maximum Drawdown (5 years) | -24.53% | -36.02% |
| $1,000 Growth Over 5 Years | $1,850 | $1,970 |
What’s Inside
MGK zeroes in on America’s largest growth stocks, holding just 60 of them. About 55% of its portfolio is in technology, 17% in communications services, and 13% in consumer cyclicals.
The leading three stocks—Nvidia, Apple, and Microsoft—make up nearly 36% of its assets. Established over 18 years ago, MGK offers concentrated long-term exposure to industry-leading growth companies.
In contrast, VOO mirrors the S&P 500 and includes 504 stocks, providing broader diversification. Its sector allocation is more evenly spread, with 35% in technology, 13% in financial services, and 11% in communications services. The top holdings overlap with MGK, but their combined weighting is lower, showcasing VOO’s more balanced positioning.
For an in-depth look at ETF investing, you can refer to our complete guide.
Implications for Investors
Both VOO and MGK focus on large-cap stocks, but MGK narrows its focus exclusively on mega-cap stocks, typically defined as those with a market cap of at least $200 billion.
More focused funds like MGK bring both higher potential returns and risks. As indicated by MGK’s maximum drawdown and elevated beta, the smaller scope can lead to greater exposure to market shifts, resulting in possibly increased volatility.
VOO, on the other hand, benefits from a wider range of stocks, making it somewhat more stable. Its assets are distributed more evenly across different sectors, reducing reliance on tech stocks, which can contribute to lower volatility. Even though both funds share the same top three holdings, these stocks represent about 36% of MGK’s portfolio compared to around 21% for VOO.
With Nvidia, Apple, and Microsoft having performed strongly lately, MGK has achieved higher returns over the past year and five years than VOO. However, if these stocks falter, MGK could experience more substantial losses.
If you’re after a well-balanced fund that encompasses both large- and mega-cap stocks, VOO’s broad focus on the S&P 500 could be the way to go. Conversely, if you lean toward a more concentrated strategy with enhanced earning possibilities, MGK might catch your interest.
