VOOG vs. MGK: Tech Exposure is Key

Vanguard Mega Cap Growth ETF (NYSEMKT:MGK) and Vanguard S&P 500 Growth ETF (NYSEMKT:VOOG) share the same low expense ratio and issuer, but differ in portfolio breadth, sector tilts, and dividend yield.

Both funds aim to give investors exposure to large-cap U.S. growth stocks, but while MGK zeroes in on the largest names in the market, VOOG casts a wider net across the S&P 500’s growth segment. Here’s how these two compare for investors weighing focus versus breadth.

Snapshot (cost & size)

Beta measures price volatility relative to the S&P 500; beta is calculated from five-year weekly returns. The 1-yr return represents total return over the trailing 12 months.

Both funds are equally affordable with matching 0.07% expense ratios, but VOOG’s yield edges out MGK’s , offering a slightly higher payout for investors seeking a touch more income.

Performance & risk comparison

What's inside

Vanguard S&P 500 Growth ETF holds 217 stocks, offering broader diversification across the growth portion of the S&P 500. Technology companies make up 44% of assets, with communication services and consumer cyclical sectors also playing significant roles at 15% and 12%, respectively. Its largest positions are NVIDIA (NASDAQ:NVDA) at 15.3%, Microsoft (NASDAQ:MSFT) at 6.2%, and Apple (NASDAQ:AAPL) at 5.7%. VOOG has a fund history spanning 15.3 years and currently avoids concentrated sector or single-stock risk.

The Vanguard Mega Cap Growth ETF, by contrast, is more concentrated with just 66 holdings and 69% of assets in technology. Its top three positions—NVIDIA, Apple, and Microsoft—collectively account for over 38% of the portfolio. While both funds are managed by Vanguard and avoid leverage or other structural quirks, MGK’s narrower focus results in higher potential exposure to swings in the tech sector.

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What this means for investors

Some ETFs are so similar that it's difficult to find any differences at all, and that's mostly the case with VOOG and MGK. Both of these funds are offered by Vanguard, which is known for its low fees. These two funds are no exception, with both carrying a reasonable 0.07% expense ratio. Both funds also have a heavy emphasis on some of the largest companies in the public markets.

So, how should investors distinguish between these funds to make an informed decision on where to invest? It comes down to the degree of exposure desired to the top holdings in the funds. Both have a large exposure to the technology sector, but MGK is even more heavily tipped toward technology.

While Nvidia is the top holding in both funds at approximately 15% of AUM, the next two largest holdings, Microsoft and Apple, make up a larger percentage in MGK than in VOOG.

With almost every other difference between these funds being negligible, it is this tech exposure that truly differentiates them. As a result, potential investors should focus on this aspect when deciding between the two.

Glossary

Expense ratio: The annual fee, as a percentage of assets, that a fund charges to cover operating costs.
Dividend yield: Annual dividends paid by a fund, expressed as a percentage of its current share price.
Sector diversification: Distribution of a fund's investments across different industries or sectors to reduce risk.
Beta: A measure of a fund's volatility compared to the overall market, typically the S&P 500.
AUM (Assets Under Management): The total market value of all assets managed by a fund.
Max drawdown: The largest percentage drop from a fund’s peak value to its lowest point over a specific period.
Growth of $1,000: The ending value of a $1,000 investment over a set period, showing total return.
Large-cap: Companies with a large market capitalization, usually over $10 billion.
Holdings: The individual stocks or assets that make up a fund’s portfolio.
Concentration risk: The risk of significant losses due to heavy investment in a single sector or a few assets.
Leverage: The use of borrowed money or financial instruments to increase potential returns, often increasing risk.

Jeff Santoro has positions in Apple, Microsoft, and Nvidia. 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.