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Each funds share an identical expense ratios, however VONG presents a barely increased dividend yield and holds extra shares.
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MGK has delivered a better 1-year whole return and bigger know-how sector tilt, whereas VONG spreads its bets throughout practically 400 holdings.
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Threat metrics favor VONG, which confirmed a milder most drawdown and decrease beta over the previous 5 years.
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The Vanguard Mega Cap Progress ETF (NYSEMKT:MGK) and Vanguard Russell 1000 Progress ETF (NASDAQ:VONG) are each low-cost, passively managed funds from Vanguard centered on U.S. large-cap development shares.
MGK focuses on the biggest mega-cap names, whereas VONG tracks a broader index that encompasses a wider vary of large-cap development firms. Right here’s how the 2 stack up for buyers weighing the trade-offs between focus and diversification.
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Metric
|
MGK
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VONG
|
|
Issuer
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Vanguard
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Vanguard
|
|
Expense ratio
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0.07%
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0.07%
|
|
1-yr return (as of Dec. 27, 2025)
|
17.59%
|
15.46%
|
|
Dividend yield
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0.37%
|
0.45%
|
|
AUM
|
$32.7 billion
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$44.6 billion
|
|
Beta (5Y month-to-month)
|
1.24
|
1.17
|
Beta measures worth volatility relative to the S&P 500. The 1-yr return represents whole return over the trailing 12 months.
Each funds are equally inexpensive, charging a 0.07% annual expense ratio. VONG edges forward on dividend yield, nevertheless, which can enchantment to these looking for a touch increased revenue stream from development shares.
|
Metric
|
MGK
|
VONG
|
|
Max drawdown (5 y)
|
-36.02%
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-32.72%
|
|
Progress of $1,000 over 5 years
|
$2,080
|
$2,010
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VONG tracks the Russell 1000 Progress Index, holding 391 shares and offering publicity to a broad slice of the U.S. development market. Expertise leads at 55% of whole property, with client cyclical and communication providers making up substantial parts.
Its high positions are Nvidia, Apple, and Microsoft, and the fund’s 15-year monitor file indicators stability and maturity. VONG’s broader roster means much less focus danger in single names.
MGK, against this, is much more tech-heavy, with the sector making up 58% of whole property. It additionally holds simply 66 names, making it extra concentrated within the largest firms. Its high three holdings match VONG’s, however with increased particular person weights.
For extra steerage on ETF investing, take a look at the complete information at this hyperlink.
VONG and MGK each focus closely on tech shares with potential for above-average returns, making them good investments for these looking for tech publicity inside a development ETF.
Nevertheless, the 2 funds differ primarily in diversification. VONG holds practically 400 shares, in comparison with simply 66 for MGK. That alone is a considerable distinction between the 2, however MGK’s heavier tilt towards tech makes it even much less diversified than VONG.
Much less diversification is not all the time a foul factor, nevertheless. A extra focused ETF may end up in increased earnings, because it’s much less probably that lower-performing shares will drag down the fund’s general efficiency.
Whereas MGK has outperformed VONG over the previous 12 months and 5 years, the distinction is marginal. When contemplating pure efficiency, then, it seems that maybe MGK’s increased danger stage hasn’t essentially paid off.
Going ahead, MGK has the potential to outperform VONG if the tech sector continues thriving. But when a tech downturn is across the nook, VONG’s elevated diversification might assist mitigate some danger and lead to barely milder worth fluctuations.
ETF: Trade-traded fund; a pooled funding fund traded on inventory exchanges like a inventory.
Expense ratio: The annual charge, as a share of property, {that a} fund fees to cowl working prices.
Dividend yield: Annual dividends paid by a fund or inventory divided by its present worth, expressed as a share.
Whole return: The funding’s worth change plus all dividends and distributions, assuming these payouts are reinvested.
Beta: A measure of an funding’s volatility in comparison with the general market, usually the S&P 500.
AUM: Property beneath administration; the overall market worth of property a fund manages on behalf of buyers.
Max drawdown: The most important share drop from a fund’s peak worth to its lowest level over a particular interval.
Focus danger: The danger of losses resulting from heavy funding in a small variety of holdings or sectors.
Diversification: Spreading investments throughout varied property to cut back danger from any single holding.
Sector tilt: When a fund has a better allocation to a specific business or sector than the broader market.
Russell 1000 Progress Index: A inventory index monitoring the efficiency of large-cap U.S. development firms.
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Katie Brockman has positions in Vanguard Scottsdale Funds – Vanguard Russell 1000 Progress ETF. The Motley Idiot has positions in and recommends Apple, Microsoft, and Nvidia. The Motley Idiot recommends the next choices: lengthy January 2026 $395 calls on Microsoft and quick January 2026 $405 calls on Microsoft. The Motley Idiot has a disclosure coverage.
VONG vs. MGK: Is Diversified Progress or Mega-Cap Focus Higher for Traders? was initially printed by The Motley Idiot
