Take a look at how the differences in sector focus and the breadth of portfolios can influence your strategy for investing in growth-focused ETFs.
The Vanguard S&P 500 Growth ETF (VOOG +0.40%) and the Vanguard Mega Cap Growth ETF (MGK +0.59%) both aim at U.S. growth stocks, but their methods differ significantly.
VOOG tracks the growth segment of the S&P 500, providing comprehensive exposure to large-cap growth stocks. In contrast, MGK zeroes in on mega-cap stocks, targeting the biggest growth companies. Here’s a look at how the two ETFs stack up in terms of performance, risk, and diversification.
Cost and Size Comparison
| Metric | VOOG | MGK |
|---|---|---|
| Provider | Vanguard | Vanguard |
| Expense Ratio | 0.07% | 0.07% |
| 1-Year Return (as of January 24, 2026) | 15.75% | 14.60% |
| Dividend Yield | 0.49% | 0.35% |
| Beta (monthly over 5 years) | 1.08 | 1.20 |
| Assets Under Management | $22 billion | $32 billion |
Beta measures volatility relative to the S&P 500, while the one-year return indicates total returns for the year ahead.
Though both ETFs share a low expense ratio, MGK comes with a slightly lower dividend yield. For investors focused on costs, this might not be a deal-breaker. However, those seeking a bit of income might find VOOG to be more attractive.
Performance and Risk Analysis
| Metric | VOOG | MGK |
|---|---|---|
| Maximum Drawdown (5 Years) | -32.74% | -36.02% |
| $1,000 Growth Over 5 Years | $1,880 | $1,954 |
Portfolio Composition
MGK is designed for those wanting concentrated exposure to U.S. mega-growth stocks, with a portfolio of only 60 holdings.
Technology makes up 55% of MGK’s assets, followed by communications services and consumer cyclicals. Its top three holdings—Nvidia, Apple, and Microsoft—constitute over 35% of the fund.
On the other hand, VOOG diversifies across 140 growth stocks, allocating 49% to technology. Its secondary sectors include telecommunications and consumer cyclicals.
While its top three stocks overlap with MGK’s, they represent about 32% of the portfolio. This broader exposure might attract those looking for a bit more diversification in the growing U.S. market.
If you’re curious about ETF investing, consider checking out our full guide.
Implications for Investors
Both VOOG and MGK target growth stocks but approach this market segment differently.
VOOG consists solely of stocks from companies in the S&P 500, comprising the biggest and most established U.S. firms. This could add a layer of stability. With more than twice as many equities compared to MGK, it offers better diversification.
Meanwhile, MGK specializes in mega-growth stocks. Typically, large-cap stocks boast market values of $10 billion, while mega-caps usually exceed $200 billion.
MGK has shown more volatility in recent times, evident in its higher beta and greater maximum drawdown. VOOG has led in 12-month total returns, yet MGK has performed slightly better over the longer five-year period.
Both ETFs present solid choices for growth-oriented investors, but your specific goals will determine which might suit you better. VOOG offers a more comprehensive range of stocks, including both large-cap and mega-cap options. Conversely, MGK’s narrower focus could yield higher long-term returns, albeit with possibly reduced diversification and increased volatility.
