The Motley Fool·2025-12-08 00:07Core Insights - The Vanguard Mega Cap Growth ETF (MGK) and the Vanguard S&P 500 ETF (VOO) differ significantly in cost, yield, and diversification, with VOO providing broader market exposure while MGK focuses on growth stocks [2][3] Cost and Size Comparison - MGK has an expense ratio of 0.07%, while VOO has a lower expense ratio of 0.03% [4][5] - The 1-year return for MGK is 21.8%, compared to VOO's 13.5% [4] - MGK has a dividend yield of 0.4%, whereas VOO offers a higher yield of 1.1% [5] - MGK has assets under management (AUM) of $33.0 billion, while VOO has a significantly larger AUM of $1.5 trillion [4] Performance and Risk Comparison - Over the past five years, MGK experienced a maximum drawdown of -36.01%, while VOO had a lower drawdown of -24.52% [6] - An investment of $1,000 in MGK would have grown to $2,110 over five years, compared to $1,889 for VOO [6] Portfolio Composition - VOO tracks the S&P 500 Index and holds 505 stocks, with major sector allocations in technology (36%), financial services (13%), and consumer cyclicals (11%) [7] - The largest holdings in VOO include NVIDIA, Apple, and Microsoft [7] - MGK is heavily concentrated in technology, with 71% of its portfolio allocated to this sector and only 69 stocks in total [8] - The top holdings in MGK are also NVIDIA, Apple, and Microsoft, but with higher portfolio weights [8] Investment Focus - Investors in MGK should be comfortable with significant exposure to large tech stocks, particularly in the artificial intelligence sector, with NVIDIA making up 14.3% of the fund [11] - VOO's performance is also influenced by major tech companies, with NVIDIA, Alphabet, Apple, and Microsoft comprising about 27% of the fund [12] Dividend Performance - VOO has shown a steady increase in dividend payouts, with the latest quarterly payout being 25.8% higher than five years ago [13] - In contrast, dividends from MGK have been more volatile, with the latest payment being approximately 4% lower than a decade ago [13]