VOOG vs. MGK: How S&P 500 Growth Compares to Mega-Cap Tech Giants

The Vanguard Mega Cap Growth ETF (NYSEMKT:MGK) and the Vanguard S&P 500 Growth ETF (NYSEMKT:VOOG) both target U.S. large-cap growth stocks, but differ in diversification, sector tilt, and recent performance.

These two low-cost Vanguard funds offer exposure to U.S. growth equities, but MGK zeroes in on the largest growth names, while VOOG tracks the growth segment of the S&P 500. For investors comparing broad-based growth strategies, understanding the differences between them may help align portfolio goals.

Snapshot (cost & size)

Beta measures price volatility relative to the S&P 500. The 1-yr return represents total return over the trailing 12 months.

Both funds have an annual expense ratio of 0.07%, but VOOG's dividend yield is slightly higher -- providing a slight advantage for income-focused investors.

Performance & risk comparison

VOOG experienced a milder maximum drawdown over the past five years, suggesting less severe losses during downturns. MGK, however, delivered stronger cumulative growth from 2020 to 2025 despite its higher volatility.

What's inside

VOOG holds 217 stocks and aims to mirror the performance of growth-oriented companies within the S&P 500. Its largest sector exposure is technology at 44%, followed by communication services and consumer cyclical. The fund's top holdings include Nvidia, Microsoft, and Apple, and the fund has been in operation for over 15 years.

MGK, in contrast, is more concentrated, with 66 holdings and a heavier tilt toward technology at 58%. Its top three positions are also Nvidia, Apple, and Microsoft, but these names collectively represent a larger share of assets compared to VOOG. MGK’s sector mix is more tech-focused, with less exposure to other sectors.

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What this means for investors

MGK and VOOG offer a few similarities and several differences. They've experienced similar performance over the last 12 months and five years, and they have the same expense ratio. VOOG boasts a slightly higher dividend yield, although the two funds are fairly similar in this regard as well.

Most of their differences stem from their differing strategies. MGK only contains mega-cap stocks, which are generally defined as companies with a market cap of at least $200 billion. Its portfolio is much smaller and more targeted than VOOG, which can be both an asset and a risk.

Massive corporations have experienced supercharged growth in recent years, and funds like MGK with a niche focus on these industry leaders have benefited from it. However, with less diversification, it can also result in greater volatility -- as seen with MGK's higher beta and steeper max drawdown over the last five years.

VOOG, on the other hand, offers a broader approach to growth stocks. It tracks the S&P 500, but it only contains stocks within the index with the most growth potential. It's less focused on tech than MGK, which can reduce its volatility -- but also result in lower returns during tech rallies.

Both ETFs can be fantastic investments for gaining exposure to large growth stocks, but the right one for you will depend on your goals. MGK can be a good fit for investors seeking access to mega-cap industry leaders, while VOOG offers greater diversification across more sectors of the market.

Glossary

ETF: Exchange-traded fund, a pooled investment that trades on stock exchanges like a single stock.
Expense ratio: The annual fee, as a percentage of assets, that a fund charges to cover operating costs.
Large-cap: Refers to companies with a large market capitalization, typically over $10 billion.
Diversification: Investment strategy of spreading assets across various holdings to reduce risk.
Sector tilt: When a fund has a higher allocation to certain industries or sectors compared to the broader market.
Dividend yield: Annual dividends paid by a fund or stock divided by its current price, shown as a percentage.
Beta: A measure of an investment's volatility compared to the overall market, usually the S&P 500.
AUM: Assets under management; the total market value of assets a fund manages.
Max drawdown: The largest percentage drop from a fund’s peak value to its lowest point over a period.
Cumulative growth: The total increase in value of an investment over a specified period, including all returns.
Holdings: The individual securities or assets owned by a fund.

Katie Brockman has positions in Vanguard Admiral Funds - Vanguard S&P 500 Growth ETF. The Motley Fool has positions in and recommends Apple, Microsoft, and Nvidia. The Motley Fool recommends the following options: long January 2026 $395 calls on Microsoft and short January 2026 $405 calls on Microsoft. The Motley Fool has a disclosure policy.