Comparing Vanguard Mega Cap Growth ETF and iShares Core S&P 500 ETF
The Vanguard Mega Cap Growth ETF (MGK) and the iShares Core S&P 500 ETF (IVV) present two different investing approaches. Investors often find themselves at a crossroads, weighing the potential of a heavy tilt toward growth in mega-cap stocks against a broader market exposure.
MGK is tailored towards some of the largest growth-oriented firms, while IVV provides a more comprehensive range of companies across the S&P 500, helping distribute risk more evenly across various sectors of the U.S. economy.
Snapshots (cost and size)
| Metric | MGK | IVV |
|---|---|---|
| Publisher | Vanguard | iShares |
| Expense Ratio | 0.05% | 0.03% |
| 1-Year Returns (as of May 11, 2026) | 36.7% | 32.6% |
| Dividend Yield | 1.3% | 1.1% |
| Assets | $27.9 billion | $823.5 billion |
It’s notable that the expense ratio for IVV is somewhat lower than that of MGK, at 0.03% compared to 0.05%.
Comparing Performance and Risk
| Metric | MGK | IVV |
|---|---|---|
| Maximum Drawdown (5 years) | (36%) | (24.5%) |
| $1,000 Growth in 5 Years (total return) | $2,107 | $1,917 |
What’s Inside
The iShares Core S&P 500 ETF features 504 stocks and was established in 2000. Some major holdings include Nvidia at 8.5%, Apple at 6.8%, and Microsoft at 4.8%. The fund allocates 37% to technology, 12% to financial services, and 11% to communications services, creating a diversified portfolio. The dividend for the year was reported at $8.06 per share.
Meanwhile, the Vanguard Mega Cap Growth ETF, which launched in 2007, is more concentrated with just 59 holdings. Here, Nvidia takes the top spot at 13.8%, followed by Apple at 12.6% and Microsoft at 9%. A hefty 68% of its investments are in technology, along with 16% in consumer cyclicals and 6.4% in industrials. Its anticipated dividend over the next year is $1.18 per share.
What This Means for Investors
The choice between MGK and IVV ultimately hinges on an investor’s personal goals and comfort with different sectors. MGK is notably more concentrated, with a significant lean towards technology, which can be enticing for those aiming for high growth. It represents companies in the top 70% by market cap with specific growth qualities.
While IVV shares three top holdings with MGK, it diversifies its investments significantly more, tracking the broader S&P 500 index. Over the past five years, IVV’s drawdowns have generally been less extreme.
For investors keen on technology and growth, MGK may present a compelling option. Conversely, those seeking more variety and stability might find IVV’s extensive portfolio more appealing.
