Core Insights - The article compares two low-cost Vanguard ETFs, the Vanguard Mega Cap Growth ETF (MGK) and the Vanguard Russell 1000 Growth ETF (VONG), focusing on their diversification, sector exposure, and risk profiles for growth-focused investors [1][2]. Group 1: Fund Overview - Both MGK and VONG are passively managed funds from Vanguard that target U.S. large-cap growth stocks, with an expense ratio of 0.07% for both [3]. - As of December 27, 2025, MGK has a 1-year return of 17.59% and a dividend yield of 0.37%, while VONG has a 1-year return of 15.46% and a higher dividend yield of 0.45% [3]. Group 2: Performance & Risk Metrics - Over the past five years, MGK has a maximum drawdown of -36.02%, compared to VONG's -32.72%, indicating MGK's higher volatility [4]. - An investment of $1,000 in MGK would have grown to $2,080 over five years, while the same investment in VONG would have grown to $2,010 [4]. Group 3: Portfolio Composition - VONG tracks the Russell 1000 Growth Index, holding 391 stocks with a significant allocation of 55% in technology, while MGK is more concentrated with only 66 stocks and a 58% allocation in technology [5][6]. - The top holdings for both funds include Nvidia, Apple, and Microsoft, but MGK has higher individual weights in these stocks, leading to greater concentration risk [6]. Group 4: Investment Implications - VONG offers greater diversification with nearly 400 stocks, reducing concentration risk compared to MGK's 66 stocks [7]. - While MGK has outperformed VONG in the past year and five years, the marginal difference in performance suggests that MGK's higher risk may not have yielded significantly better returns [8]. - Future performance may favor MGK if the tech sector continues to thrive, but VONG's diversification could mitigate risks during potential tech downturns [9].

Core Insights - The Vanguard Growth ETF (VUG) and Vanguard Mega Cap Growth ETF (MGK) provide broad U.S. growth exposure but differ in their focus and structure [1] Group 1: Cost and Size Comparison - VUG has a lower expense ratio of 0.04% compared to MGK's 0.07%, making it more cost-effective for investors [2] - As of December 22, 2025, VUG's one-year return is 17.44%, while MGK's is 18.90% [2] - VUG has assets under management (AUM) of $353 billion, significantly larger than MGK's $33 billion [2] Group 2: Performance and Risk Analysis - Over the past five years, MGK has delivered a higher total return of $2,058 compared to VUG's $1,953, although both funds have similar maximum drawdowns of -35.61% for VUG and -36.02% for MGK [3] - Both funds exhibit comparable downside risk during market stress, indicating similar performance under adverse conditions [3] Group 3: Portfolio Composition - MGK focuses on 66 mega-cap growth stocks, with 58% of its assets in technology, heavily concentrating on top holdings like Nvidia, Apple, and Microsoft [4] - VUG is diversified across 160 large-cap growth stocks, with a sector mix of 53% technology, 14% communication services, and 14% consumer cyclical, providing a broader exposure [5] - The top three holdings in MGK constitute 38.26% of its total assets, while in VUG, they make up 33.51%, indicating a higher concentration in MGK [7] Group 4: Investment Implications - Investors seeking a targeted approach to mega-cap growth may prefer MGK, while those looking for greater diversification within the growth sector might opt for VUG [9] - Both ETFs are tech-heavy, but VUG includes a mix of large- and mega-cap stocks, offering a different risk-return profile [6]

Core Insights - The Vanguard Mega Cap Growth ETF (MGK) focuses on high-growth mega-cap stocks, while the Vanguard S&P 500 ETF (VOO) mirrors the full S&P 500, leading to different risk and return profiles for investors [1][2] Cost and Size Comparison - MGK has an expense ratio of 0.07% and AUM of $32.7 billion, while VOO has a lower expense ratio of 0.03% and significantly larger AUM of $1.5 trillion [3] - The one-year return for MGK is 14.12%, compared to 11.98% for VOO, but VOO offers a higher dividend yield of 1.12% versus MGK's 0.37% [3] Performance and Risk Comparison - Over the last five years, MGK experienced a max drawdown of -36.02%, while VOO had a max drawdown of -24.53% [4] - A $1,000 investment in MGK would have grown to $2,017, while the same investment in VOO would have grown to $1,819 [4] Portfolio Composition - VOO holds 505 stocks with a sector allocation of 37% in technology, 13% in financial services, and 11% in consumer cyclicals, providing broad market exposure [5] - MGK is more concentrated with only 66 holdings, heavily tilted towards technology at 58%, followed by communication services at 15% and consumer cyclical at 12% [6] Implications for Investors - VOO offers greater diversification and stability, making it suitable for risk-averse investors, while MGK's concentrated growth strategy may appeal to those willing to accept higher volatility for potentially higher returns [7][9] - The top three holdings in both funds are the same, but they constitute 38% of MGK's portfolio compared to 22% in VOO, indicating a higher risk-reward profile for MGK [8]

Core Insights - The Vanguard Mega Cap Growth ETF (MGK) and Invesco QQQ Trust (QQQ) both target large-cap U.S. growth stocks but differ in liquidity, sector reach, yield, and cost structure [1][2] Cost & Size Comparison - MGK has a lower expense ratio of 0.07% compared to QQQ's 0.20% - As of December 14, 2025, MGK's 1-year return is 15.8%, while QQQ's is 15.7% - QQQ offers a higher dividend yield of 0.46% compared to MGK's 0.37% - MGK has assets under management (AUM) of $32.7 billion, while QQQ has $403.0 billion [3] Performance & Risk Comparison - Over the past five years, MGK experienced a maximum drawdown of -36.02%, while QQQ had a drawdown of -35.12% - An investment of $1,000 in MGK would have grown to $2,083, while the same investment in QQQ would have grown to $2,033 [4] Holdings & Sector Allocation - QQQ contains 101 holdings, with approximately 54% in technology, 17% in communication services, and 13% in consumer cyclical sectors - Top positions in QQQ include Nvidia (9%), Apple (9%), and Microsoft (8%) [5] - MGK is more concentrated with 66 stocks, allocating 58% to technology, 15% to communication services, and 12% to consumer cyclical - Its top holdings are Nvidia (14%), Apple (12%), and Microsoft (12%) [6] Investment Implications - QQQ provides broader diversification and encompasses both mega-cap and slightly smaller large-cap growth stocks, while MGK focuses on mega-cap stocks with a market capitalization of at least $200 billion [8][10] - Investors seeking lower fees and targeted access to mega-cap stocks may prefer MGK, while those looking for more diversification may opt for QQQ [11]

Core Insights - The Vanguard Mega Cap Growth ETF (MGK) and the Vanguard S&P 500 Growth ETF (VOOG) target U.S. large-cap growth stocks but differ in diversification, sector tilt, and recent performance [1][2] Cost & Size - Both MGK and VOOG have an expense ratio of 0.07% - As of December 12, 2025, MGK has a 1-year return of 15.09% and a dividend yield of 0.37%, while VOOG has a 1-year return of 16.74% and a dividend yield of 0.48% - MGK has assets under management (AUM) of $33.0 billion, compared to VOOG's AUM of $21.7 billion [3] Performance & Risk Comparison - Over the past five years, MGK experienced a maximum drawdown of -36.02%, while VOOG had a maximum drawdown of -32.74% - A $1,000 investment in MGK would have grown to $2,083 over five years, compared to $1,978 for VOOG [4] Portfolio Composition - VOOG holds 217 stocks, with a sector exposure of 44% in technology, followed by communication services and consumer cyclical - MGK is more concentrated with 66 holdings and a heavier tilt toward technology at 58%, with top positions in Nvidia, Apple, and Microsoft [5][6] Investment Implications - MGK focuses on mega-cap stocks, defined as companies with a market cap of at least $200 billion, resulting in a more targeted portfolio - VOOG offers a broader approach by tracking the growth segment of the S&P 500, which may reduce volatility but could also lead to lower returns during tech rallies [8][10] - The choice between MGK and VOOG depends on investor goals, with MGK suitable for those seeking exposure to mega-cap leaders and VOOG for those wanting greater diversification [11]

Core 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 [1][2] Cost and Size Comparison - MGK has an expense ratio of 0.07%, while VOO has a lower expense ratio of 0.03% [3][4] - As of November 28, 2025, MGK's one-year return is 21.8%, compared to VOO's 13.5% [3] - MGK offers a dividend yield of 0.4%, whereas VOO provides a higher yield of 1.1% [4] - MGK has assets under management (AUM) of $33.0 billion, while VOO has a significantly larger AUM of $1.5 trillion [3] Performance and Risk Comparison - Over the past five years, MGK experienced a maximum drawdown of -36.01%, compared to VOO's -24.52% [5] - An investment of $1,000 in MGK would have grown to $2,110 over five years, while the same investment in VOO would have grown to $1,889 [5] 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%) [6] - The largest holdings in VOO include NVIDIA, Apple, and Microsoft [6] - MGK is heavily concentrated in technology, with 71% of its portfolio, and holds only 69 stocks [7] - The top holdings in MGK are also NVIDIA, Apple, and Microsoft, but with higher portfolio weights [7] 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 [8] - VOO investors have substantial exposure to tech giants like Nvidia, Alphabet, Apple, and Microsoft, which collectively account for about 27% of the fund [9] - VOO has shown a steady increase in dividend payouts, with the latest quarterly payout being 25.8% higher than five years ago, while MGK's dividends have been more volatile [9]

Core 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]

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]

Core Insights - The Vanguard S&P 500 ETF (VOO) offers lower fees and a higher dividend yield compared to the Vanguard Mega Cap Growth ETF (MGK), which focuses on mega-cap growth stocks with higher recent returns but greater risk [1][4][11] - MGK is more concentrated in technology and growth stocks, while VOO provides broader market exposure by tracking the S&P 500 Index [2][6][7] Cost and Size Comparison - MGK has an expense ratio of 0.07% and AUM of $31.3 billion, while VOO has a lower expense ratio of 0.03% and AUM of $1.4 trillion [3] - The one-year return for MGK is 20.7%, compared to VOO's 13.3%, and MGK has a dividend yield of 0.4% versus VOO's 1.1% [3] Performance and Risk Analysis - Over the past five years, MGK has a maximum drawdown of -36.01%, while VOO's maximum drawdown is -24.52% [5] - An investment of $1,000 in MGK would have grown to $2,105, while the same investment in VOO would have grown to $1,855, indicating higher returns for MGK but with greater volatility [5] Sector Allocation - VOO holds 505 stocks with significant allocations in technology (36%), financial services (13%), and consumer cyclical (11%), with top positions in Nvidia, Microsoft, and Apple [6] - MGK has a more concentrated portfolio of 69 stocks, with 57% in technology, 15% in communication services, and 13% in consumer cyclical, also heavily weighted in Nvidia, Microsoft, and Apple [7] Investment Considerations - The "Magnificent Seven" stocks constitute 33% of VOO's portfolio and 59% of MGK's, indicating a higher concentration in these leading tech stocks for MGK [9] - Investors with substantial holdings in S&P 500 funds like VOO may not need to add MGK, as it increases exposure to the same top stocks [10] - Both ETFs are suitable for investors looking to invest in large-cap U.S. equities, but VOO may offer a smoother investment experience with a lower average P/E ratio of 28 compared to MGK's 40 [11]

Core Insights - The Vanguard S&P 500 ETF has returned 96.8% since the current bull market began on October 12, 2022, highlighting the effectiveness of a basic investment approach [1] - The "Magnificent Seven" stocks have significantly contributed to the performance of the Vanguard S&P 500 ETF, accounting for 63% of its upside in 2023, down from 53.7% the previous year [2] - The Vanguard Mega Cap Growth ETF is positioned as a strong investment option, benefiting from the ongoing performance of the "Magnificent Seven" stocks [3] ETF Performance and Composition - The Vanguard Mega Cap Growth ETF has been utilizing a mega-cap growth strategy for nearly 18 years, reflecting the rising popularity of the "Magnificent Seven" stocks [4] - The top three holdings in the Mega Cap Growth ETF—Nvidia, Microsoft, and Apple—make up 38% of the fund, indicating its heavy reliance on these leading tech stocks [6] - At the end of Q3, the technology sector, including communication services, represented 68.40% of the Mega Cap Growth ETF's portfolio, aligning it with the stocks driving the current bull market [7] Market Outlook - Despite potential shifts in sector leadership, the current bull market has shown little indication of growth or tech losing their investment appeal, positioning the Vanguard fund as a leader among ETFs [8] - The Vanguard Mega Cap Growth ETF offers a straightforward investment approach, holding 66 mega-cap stocks and weighting them by market cap, which leverages market wisdom [10] - The ETF's low expense ratio of 0.07% makes it an attractive option for investors looking to invest in a basket of growth stocks [11]