VOO and MGK Both Offer Large-Cap Exposure, But Vary on Risk Profiles, Fees, and Diversification

Core Insights - The Vanguard Mega Cap Growth ETF (MGK) focuses on mega-cap stocks, while the Vanguard S&P 500 ETF (VOO) provides broader market exposure by tracking the full S&P 500 index [1][2] Cost & Size Comparison - MGK has an expense ratio of 0.07% and assets under management (AUM) of $32.9 billion, while VOO has a lower expense ratio of 0.03% and AUM of $800.2 billion [3] - The one-year return for MGK is 21.14%, compared to VOO's 12.67%, and MGK has a dividend yield of 0.38% versus VOO's 1.15% [3] Performance & Risk Metrics - Over five years, MGK experienced a maximum drawdown of -36.01%, while VOO had a drawdown of -24.52% [4] - An investment of $1,000 in MGK would grow to $2,100 over five years, compared to $1,861 for VOO [4] Portfolio Composition - VOO holds 504 stocks with a sector mix led by technology (36%), followed by financial services (13%) and consumer cyclical (11%) [5] - MGK is more concentrated with 66 holdings, heavily weighted towards technology (69%), and smaller allocations to consumer cyclical (16%) and healthcare (5%) [6] Investment Strategy - MGK's focus on mega-cap companies can lead to higher gains during tech rallies but also results in greater volatility due to its concentrated holdings [7] - VOO offers more diversification, including both large- and mega-cap companies, which may appeal to investors seeking stability [8][9]