Core Insights - The Vanguard Mega Cap Growth (MGK) and Vanguard S&P 500 (VOO) differ significantly in portfolio concentration, sector exposure, and historical risk, with VOO providing broader diversification while MGK focuses on high-growth mega-cap stocks [1][2] Cost and Size Comparison - Both funds are passively managed by Vanguard, with MGK having an expense ratio of 0.07% compared to VOO's 0.03%, making VOO more affordable [3] - As of November 14, 2025, MGK has a 1-year return of 20.33% while VOO has a return of 12.74% [3] - MGK has a dividend yield of 0.38% versus VOO's 1.15%, appealing to income-focused investors [3] - MGK has assets under management (AUM) of $31.28 billion, while VOO has a significantly larger AUM of $1.41 trillion [3] Performance and Risk Comparison - Over the past five years, MGK experienced a maximum drawdown of -36.02%, compared to VOO's -24.53% [4] - An investment of $1,000 in MGK would have grown to $2,121 over five years, while the same investment in VOO would have grown to $1,881 [4] Sector Exposure and Holdings - VOO holds 504 stocks with significant exposure to technology (36%), financial services (13%), and consumer cyclical (11%), making it broadly diversified [5] - MGK is more concentrated with only 66 holdings, dominated by technology (57%), communication services (15%), and consumer cyclical (13%) [6] - Both funds have top positions in Nvidia, Microsoft, and Apple, but MGK has greater portfolio weights in these stocks, reflecting its focus on mega-cap growth [6] Investment Strategy - MGK targets mega-cap stocks, defined as those with a market cap of at least $200 billion, while VOO tracks the S&P 500 Index, which includes a wider variety of large-cap stocks [7] - The concentration in technology within MGK may lead to higher potential returns during strong tech markets but also greater drawdowns during downturns [6][9] - VOO's diversified assortment of stocks can limit volatility in the short term, even if it results in lesser total returns [9] Summary - MGK offers more potential rewards but comes with slightly higher risk, while VOO provides more long-term stability [10]