The Invesco QQQ Trust, Series 1 (QQQ 1.44%) and the Vanguard Mega Cap Growth ETF (MGK 1.54%) both track large-cap U.S. growth stocks, appealing to those seeking exposure to industry giants and the tech sector.
This comparison examines their costs, performance, risk, and portfolio makeup to help investors decide which fund may better fit specific goals.
Snapshot (cost & size)
| Metric | QQQ | MGK |
|---|---|---|
| Issuer | Invesco | Vanguard |
| Expense ratio | 0.18% | 0.05% |
| 1-yr return (as of March 2, 2026) | 19.65% | 14.69% |
| Dividend yield | 0.45% | 0.36% |
| Beta (5Y monthly) | 1.18 | 1.17 |
| AUM | $412 billion | $32 billion |
Beta measures price volatility relative to the S&P 500. The 1-yr return represents total return over the trailing 12 months.
MGK is considerably more affordable on fees with its lower expense ratio, though QQQ has a slight edge on income with a higher dividend yield. For investors prioritizing cost, MGK may appeal.
Performance & risk comparison
| Metric | QQQ | MGK |
|---|---|---|
| Max drawdown (5 y) | -35.12% | -36.02% |
| Growth of $1,000 over 5 years | $1,879 | $1,869 |
What's inside
MGK tracks a basket of 60 mega-cap U.S. growth stocks, with the largest weightings in technology (54%), communication services (18%), and consumer cyclical (14%).
Its top holdings — Nvidia, Apple, and Microsoft — make up over a third of the portfolio, reflecting a strong tilt toward tech giants. There are no leverage, ESG, or currency hedging quirks.
QQQ, in contrast, holds 101 stocks from the NASDAQ-100 Index, also dominated by technology (51%), communication services (17%), and consumer cyclical (13%). Its top three holdings are the same as those of MGK, but at slightly smaller weightings.
For more guidance on ETF investing, check out the full guide at this link.
What this means for investors
QQQ and MGK both provide access to growth stocks, but they offer slightly different approaches. While QQQ focuses on large-cap growth stocks, MGK focuses on a smaller basket of mega-cap stocks.
Mega-caps are generally defined as stocks with a market cap of at least $200 billion, which is significantly larger than the $10 billion baseline for large-cap stocks.
MGK is more concentrated than QQQ, which can result in greater risk and reward. While the funds share the same top three holdings, those stocks make up 34.8% of MGK’s portfolio compared to 22.4% for QQQ. This heavier tilt toward tech giants can leader to more volatility for MGK during downturns, but it may also outperform QQQ when those particular companies are thriving.
Fees are also a factor to consider, as QQQ’s expense ratio is more than three times higher than MGK’s. While it may not make a meaningful difference for some investors, those with larger account balances can expect to pay far more per year with QQQ.
