Is Vanguard Morningstar MGK a good investment?

If you're seeking exposure to the largest growth stocks, MGK is a good investment due to its low fees and simplicity.

How do I buy the Vanguard Morningstar Growth ETF?

You can buy the Vanguard Morningstar Mega Cap Growth ETF like any other ETF through a brokerage by searching for its ticker (MGK) and placing an order.

Is MGK an ETF or mutual fund?

MGK is an ETF, not a mutual fund. The difference is MGK is traded on an exchange.

What does MGK ETF track?

MGK tracks the Morningstar Mega Cap Growth Index

Is MGK tax-efficient?

MGK is highly tax-efficient, thanks to a low 0.38% 30-day SEC yield that largely consists of qualified dividends.

Is MGK still successful?

MGK's recent one-year and year-to-date total returns remains competitive, although valuations for its portfolio are stretched.

How to Buy Vanguard Morningstar Mega-Cap Growth ETF (MGK)

How to Invest in Vanguard Morningstar Mega-Cap Growth ETF (MGK)

By Tony Dong – Updated Aug 17, 2026 at 2:59 PM EST | Fact-checked by Frank Bass

Key Points

Vanguard Mega Cap Growth ETF offers low-cost access to top U.S. growth stocks, with a fee of just 0.07%.
Its portfolio includes major tech firms, concentrated heavily in technology sector (61.7%).
Investors should consider MGK for long-term growth, despite its low dividend yield.

Vanguard is renowned for its low fees, and its exchange-traded funds (ETFs) are no exception. A standout option is the Vanguard Morningstar Mega Cap Growth ETF (MGK +0.12%), which provides concentrated exposure to America's largest and fastest-growing companies, all in a single ticker.

In this article, we'll cover what this Vanguard ETF is, its holdings, how to buy it, its historical performance, and everything else you need to know before making a buying decision.

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NYSEMKT: MGK

Vanguard Morningstar Mega Cap Growth ETF

Today's Change

(0.12%) $0.11

Current Price

$94.19

Key Data Points

AUM

$34B

Dividend Yield

0.93%

Expense Ratio

0.05%

Top Holdings

NVDA

14.33%

AAPL

13.04%

MSFT

9.99%

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What is the Vanguard Morningstar Mega Cap Growth ETF?

Vanguard Morningstar Mega Cap Growth ETF (MGK) is a passively managed ETF that tracks the performance of the Morningstar Mega Cap Growth index. This index represents the largest 70% of the broader Morningstar Total Market index based on market capitalization, with a median market cap of $1.6 trillion.

The ETF is heavily weighted toward more innovative sectors, particularly technology, communications, and consumer discretionary. Due to its growth focus, the ETF includes companies with strong fundamentals, featuring high average earnings growth rates and impressive return on equity ratios.

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Exchange-Traded Fund (ETF)

An exchange-traded fund, or ETF, allows investors to buy many stocks or bonds at once.

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How to buy MGK

Open your brokerage account: Log in to your brokerage account where you handle your investments. If you don't have one yet, take a look at our favorite brokers and trading platforms to find the right one for you.
Search for the ETF: Enter the ticker "MGK" into the search bar to bring up the ETF's trading page.
Decide how many shares to buy: Consider your investment goals and how much of your portfolio you want to allocate to this ETF.
Select order type: Choose between a market order to buy at the current price or a limit order to specify the maximum price you're willing to pay.
Submit your order: Confirm the details and submit your buy order.
Review your purchase: Check your portfolio to ensure your order was filled as expected and adjust your investment strategy accordingly.

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Holdings of MGK

Vanguard Morningstar Mega Cap Growth ETF's holdings replicate the Morningstar Mega Cap Growth index. Whenever the index is rebalanced or reconstituted, the fund's holdings are adjusted accordingly.

As of July 3, 2025, the ETF held 69 stocks, with the following top 10 holdings (with weights) per Morningstar:

Microsoft (MSFT +0.43%) -- 13.10%
Nvidia (NVDA +0.97%) -- 11.95%
Apple (AAPL +0.09%) -- 11.62%
Amazon (AMZN -0.37%) -- 7.36%
Broadcom (AVGO +0.73%) -- 4.59%
Meta Platforms (META +2.63%) -- 4.36%
Tesla (TSLA -0.74%) -- 3.86%
Visa (V +1.74%) -- 2.58%
Eli Lilly (LLY -1.36%) -- 2.56%
Alphabet (GOOGL +0.30%) -- 2.30%

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Should you invest in MGK?

If you meet most of the following criteria, MGK might be a suitable investment for you:

You are primarily bullish on mega-cap stocks with a median market capitalization in the trillions.
You want to focus on growth stocks with high earnings, high growth rates, and strong return on equity.
You're comfortable with significant exposure to the technology sector.
You're OK with a relatively narrow portfolio that is top-heavy.
You have a high risk tolerance and can handle the volatility of growth stocks.
You're investing with a buy-and-hold mindset and a long time horizon.

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Does MGK pay a dividend?

Yes, MGK does pay a dividend, although it's modest. The ETF distributes dividends every quarter, usually with an ex-dividend date in the second-to-last week of the month and payable at the beginning of the following month.

However, since MGK focuses on growth stocks, the dividend yield is low. Most of the companies in this ETF reinvest their earnings and conduct share buybacks rather than paying substantial dividends.

As of July 3, 2025, MGK's 30-day SEC yield was just 0.38%, and it has historically hovered around that level. The bulk of MGK's returns come from capital appreciation rather than income.

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What is MGK's expense ratio?

Like most Vanguard passively managed ETFs, MGK has a low expense ratio of just 0.07%.

An expense ratio represents the annual fee charged by the fund to cover management and operational costs. Although you don't pay this fee directly, it's deducted from the fund's returns over time, which slightly reduces your overall investment performance.

For a $10,000 investment, this translates to just $7 per year in fees, making MGK a very cost-effective option for long-term investors.

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Expense Ratio

A percentage of mutual fund or ETF assets deducted annually to cover management, operational, and administrative costs.

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Historical performance of MGK

Here's a look at how MGK has performed in terms of total returns (i.e., with dividends reinvested) over various time periods:

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Data source: The Vanguard Group. Data as of June 30, 2025.
ETF	1-Year	3-Year	5-Year	10-Year
MGK (Market)	17.18%	27.00%	18.13%	17.02%
MGK (NAV)	17.19%	27.01%	18.15%	17.03%

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The bottom line

Vanguard Morningstar Mega Cap Growth ETF (MGK) is an extremely affordable way for investors to access the largest U.S. growth stocks through a single ticker. With an expense ratio of just 0.07%, it falls into the cheapest quintile of large-cap growth ETFs.

Additionally, its low yield and portfolio turnover make it particularly tax-efficient, offering a cost-effective option for long-term ETF investors looking for capital appreciation. Overall, it's one of the best ETFs one can buy.

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Investing in Vanguard Morningstar Mega Cap Growth ETF (MGK) FAQ

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Tony Dong has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Alphabet, Amazon, Apple, Broadcom, Eli Lilly, Meta Platforms, Microsoft, Nvidia, Tesla, and Visa. The Motley Fool has a disclosure policy.

How to Invest in Vanguard Morningstar Mega-Cap Growth ETF (MGK)

Key Points