The Vanguard Mega Cap Growth ETF (MGK 1.46%) and the Vanguard S&P 500 ETF (VOO 1.13%) both aim to mirror large-cap U.S. stock performance, but MGK focuses on the largest growth companies, while VOO tracks the full S&P 500.
This comparison explores how each fund stacks up on cost, performance, risk, yield, and underlying holdings.
Snapshot (cost & size)
| Metric | VOO | MGK |
|---|---|---|
| Issuer | Vanguard | Vanguard |
| Expense ratio | 0.03% | 0.05% |
| 1-yr return (as of Feb. 8, 2026) | 15.04% | 12.81% |
| Dividend yield | 1.11% | 0.36% |
| AUM | $839 billion | $32 billion |
| Beta (5Y monthly) | 1.00 | 1.17 |
Beta measures price volatility relative to the S&P 500. The 1-yr return represents total return over the trailing 12 months.
VOO is slightly more affordable than MGK on fees with a lower expense ratio. It also provides a much higher dividend yield, making it more attractive for cost-sensitive or income-focused investors.
Performance & risk comparison
| Metric | VOO | MGK |
|---|---|---|
| Max drawdown (5 y) | -24.53% | -36.02% |
| Growth of $1,000 over 5 years | $1,782 | $1,846 |
MGK has outpaced VOO in total returns over the past five years. However, this has come with meaningfully higher downside risk, as shown by its deeper maximum drawdown. MGK’s higher beta also signals greater price swings than VOO.
What's inside
MGK holds just 60 stocks, with a significant 55% allocation to technology and another 17% to communication services. The top three positions — Nvidia, Apple, and Microsoft — make up more than a third of the portfolio, reflecting its strong tilt toward mega-cap growth leaders. The fund has been around for over 18 years, providing a long track record for investors seeking focused tech exposure.
VOO, by contrast, spreads its assets across 504 holdings, mirroring the sector weights of the S&P 500. Its largest positions are also in Nvidia, Apple, and Microsoft, but with lower individual weights and a broader mix, including substantial financial services and consumer cyclical exposure.
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What this means for investors
VOO and MGK both focus exclusively on the largest U.S. companies, but MGK takes it a step further by only containing mega-cap stocks — generally defined as those with a market cap of at least $200 billion.
Each ETF offers unique advantages and drawbacks. VOO’s broad S&P 500 diversification can help mitigate volatility, especially within the tech industry. VOO only allocates around 35% of its portfolio to tech, compared to 55% for MGK. If the tech industry is hit hard during a downturn, VOO may experience less severe drawdowns.
MGK’s narrower portfolio can be an advantage, though. Broad diversification can help reduce the impact of volatility, but it also increases the risk that underperforming stocks drag down the fund’s overall returns. A more targeted approach with fewer holdings can sometimes result in greater long-term earnings.
Over the last five years, MGK has outperformed VOO with higher total returns. But with a steeper max drawdown, it’s also experienced more severe price fluctuations in that time.
If you’re willing to take on slightly more risk for the chance at higher returns, MGK could be a smart buy. Investors seeking a more stable investment to help protect against volatility, however, might prefer VOO.
