Comparing Vanguard Mega Cap Growth ETF (MGK +2.61%) and iShares Core S&P 500 ETF (IVV +1.92%) involves choosing between high-conviction growth concentration and broad market exposure.
Investors often evaluate these funds to determine if a heavy tilt toward mega-cap growth could outperform the total market. While the Vanguard fund focuses on the largest expansion-oriented companies, the iShares fund tracks the broader S&P 500, offering a more balanced approach across all primary sectors of the U.S. economy.
Snapshot (cost & size)
| Metric | MGK | IVV |
|---|---|---|
| Issuer | Vanguard | iShares |
| Expense ratio | 0.05% | 0.03% |
| 1-yr return (as of 5/11/26) | 36.7% | 32.6% |
| Dividend yield | 1.3% | 1.1% |
| Beta | 1.23 | 1 |
| AUM | $27.9 billion | $823.5 billion |
Beta measures price volatility relative to the S&P 500; beta is calculated from five-year monthly returns. The 1-yr return represents total return over the trailing 12 months. Dividend yield is the trailing-12-month distribution yield.
The iShares fund is slightly more affordable with a 0.03% expense ratio compared to the 0.05% fee for the Vanguard fund.
Performance & risk comparison
| Metric | MGK | IVV |
|---|---|---|
| Max drawdown (5 yr) | (36%) | (24.5%) |
| Growth of $1,000 over 5 years (total return) | $2,107 | $1,917 |
What's inside
The iShares Core S&P 500 ETF holds 504 stocks and launched in 2000. Its largest positions include Nvidia at 8.5%, Apple at 6.8%, and Microsoft at 4.8%. The fund provides broad exposure with 37% in technology, 12% in financial services, and 11% in communication services. It has a trailing-12-month dividend of $8.06 per share.
NYSEMKT: IVV
Key Data Points
The Vanguard Mega Cap Growth ETF is more concentrated with 59 holdings and launched in 2007. Its largest positions include Nvidia at 13.8%, Apple at 12.6%, and Microsoft at 9%. The portfolio leans heavily into technology at 68%, supplemented by 16% in consumer cyclicals, and 6.4% in industrials. It has a trailing-12-month dividend of $1.18 per share.
NYSEMKT: MGK
Key Data Points
For more guidance on ETF investing, check out the full guide at this link.
What this means for investors
Choosing between the MGK and IVV ETFs will ultimately come down to your investing goals and comfort level with various industry sectors. MGK is much more concentrated than IVV, with just 59 holdings and a nearly 70% tilt toward technology. This makes sense, as the fund seeks to track the performance of the CRSP US Mega Cap Growth Index, which represents companies in the top 70% by market cap that also demonstrate certain growth characteristics.
While IVV shares its top three holdings with MGK, it holds almost 10 times the number of companies, and technology makes up just 37% of its portfolio, still the largest allocation, but much less so than MGK. IVV, which tracks the broader S&P 500 index, also had a less severe maximum drawdown over the last five years.
Investors with a strong tech bent and an eye for maximum growth may favor MGK, but investors looking for a bit more diversity and stability at a slightly lower cost may appreciate IVV’s broader portfolio.
