Go Big or Go Small? IWM Targets Small-Cap Stocks; MGK Owns Big Tech Stocks

Core Insights - The Vanguard Mega Cap Growth ETF (MGK) and the iShares Russell 2000 ETF (IWM) have distinct characteristics in terms of cost, yield, sector exposure, and long-term growth potential [1][2] Cost and Size Comparison - MGK has a lower expense ratio of 0.05% compared to IWM's 0.19%, making it cheaper to own [3][4] - As of March 24, 2026, MGK's one-year return is 14.6%, while IWM's is higher at 19.1% [3] - MGK has a dividend yield of 0.4%, which is lower than IWM's 1.0% [3] - MGK has assets under management (AUM) of $28.3 billion, significantly less than IWM's $72.8 billion [3] Performance and Risk Comparison - Over the past five years, MGK experienced a maximum drawdown of -36.01%, while IWM's was -31.92% [5] - An investment of $1,000 in MGK would have grown to $1,834 over five years, compared to $1,148 for IWM [5] Holdings and Sector Exposure - IWM tracks nearly 2,000 small-cap U.S. stocks, with its largest holdings being Bloom Energy Class A Corp (1.05%), Fabrinet (0.67%), and Coeur Mining Inc (0.62%) [6] - IWM's sector allocation is primarily in healthcare (18%), industrials (17%), and financial services (16%) [6] - MGK is heavily concentrated in technology, with over half of its assets allocated to this sector, featuring top holdings like NVIDIA Corp, Apple Inc, and Microsoft Corp [7] Investor Implications - MGK is suitable for investors seeking exposure to large-cap growth stocks, particularly in the technology sector, while IWM offers a more diversified approach to small-cap equities [8]