Average Daily Volume
530.5K
Fund Overview
The Vanguard Mega Cap Growth ETF (MGK) is an exchange-traded fund that seeks to track the performance of the CRSP US Mega Cap Growth Index. This index comprises large-cap U.S. growth stocks, which are typically companies with high earnings growth potential. MGK provides investors with exposure to some of the largest and fastest-growing companies in the U.S. equity market, including technology giants like Apple, Microsoft, and Amazon. The fund is known for its low expense ratio, making it a cost-effective option for investors seeking growth-oriented large-cap exposure. With a focus on companies that demonstrate strong revenue and earnings growth, MGK is well-suited for investors with a long-term horizon and a higher risk tolerance.
- Asset Class
-
Equity
- Industry
-
N/A
- Annual Dividend Rate
-
- Smart Beta
-
Yes
- Leveraged / Inverse
-
N/A / No
- Dividend Quality - Yield
-
- 0.39 %
- Currency Hedged
-
No
- Portfolio Turnover
-
6 %
- Dividend Date
-
Why Invest in the MGK ETF?
Potential Benefits
- Provides concentrated exposure to high-growth, large-cap U.S. companies, which have historically outperformed the broader market over long periods.
- Low expense ratio (0.07% as of 2025), making it one of the most cost-effective growth ETFs available.
- Diversification across leading sectors like technology, consumer discretionary, and communication services.
- Strong historical performance, benefiting from the dominance of mega-cap growth stocks in bull markets.
- Passive management approach reduces turnover and potential tax inefficiencies compared to actively managed funds.
Potential Risks
- High concentration in top holdings (e.g., Apple, Microsoft, Amazon), which increases vulnerability to sector-specific downturns.
- Growth stocks can be highly sensitive to interest rate hikes, which may compress valuations.
- Underperformance during value-led market cycles or economic recoveries favoring cyclical sectors.
- Limited exposure to small- and mid-cap stocks, reducing diversification benefits.
- Potential for higher volatility compared to broad-market or value-oriented ETFs.
RSI data unavailable or insufficient history.
Monthly Returns (%)
| Year |
Jan |
Feb |
Mar |
Apr |
May |
Jun |
Jul |
Aug |
Sep |
Oct |
Nov |
Dec |
| 2026 |
-1.7%
|
-4.7%
|
-5.0%
|
+14.3%
|
+8.7%
|
-3.6%
|
-1.8%
|
+4.1%
|
+3.1%
|
+2.7%
|
-
|
-
|
| 2025 |
+1.4%
|
-2.8%
|
-8.6%
|
+2.1%
|
+9.2%
|
+6.4%
|
+3.9%
|
+0.9%
|
+4.9%
|
+4.5%
|
-1.5%
|
-0.3%
|
| 2024 |
+2.5%
|
+6.8%
|
+1.0%
|
-4.6%
|
+6.9%
|
+7.5%
|
-2.3%
|
+2.5%
|
+2.4%
|
-0.6%
|
+6.3%
|
+1.1%
|
| 2023 |
+10.7%
|
-1.5%
|
+9.1%
|
+1.8%
|
+6.1%
|
+6.7%
|
+3.2%
|
-0.7%
|
-5.8%
|
-1.1%
|
+11.6%
|
+3.8%
|
| 2022 |
-8.7%
|
-5.3%
|
+4.4%
|
-13.2%
|
-2.5%
|
-8.6%
|
+13.5%
|
-5.3%
|
-10.6%
|
+3.8%
|
+4.5%
|
-8.8%
|
| 2021 |
-1.0%
|
+0.2%
|
+2.6%
|
+7.2%
|
-1.5%
|
+6.0%
|
+3.5%
|
+3.8%
|
-5.4%
|
+8.2%
|
+0.9%
|
+1.8%
|
| 2020 |
+3.5%
|
-6.2%
|
-9.9%
|
+15.0%
|
+6.5%
|
+5.3%
|
+7.7%
|
+11.4%
|
-5.3%
|
-3.4%
|
+9.7%
|
+4.0%
|
| 2019 |
+8.8%
|
+3.4%
|
+3.3%
|
+4.7%
|
-6.6%
|
+6.8%
|
+2.4%
|
-0.4%
|
+0.4%
|
+2.6%
|
+4.2%
|
+3.2%
|
| 2018 |
+7.4%
|
-2.8%
|
-3.2%
|
+0.4%
|
+4.6%
|
+1.2%
|
+2.6%
|
+4.7%
|
+0.6%
|
-8.8%
|
-0.1%
|
-8.3%
|
| 2017 |
+3.6%
|
+4.7%
|
+1.5%
|
+2.4%
|
+3.0%
|
-0.5%
|
+2.6%
|
+1.3%
|
+1.0%
|
+3.0%
|
+2.5%
|
+1.1%
|
< -5%
-5% to -2%
-2% to 0%
0%
0% to +2%
+2% to +5%
> +5%
Top Holdings (by weight)
| Symbol |
Company Name |
Weight |
|
AAPL
|
APPLE INC |
14.0 % |
|
MSFT
|
MICROSOFT CORP |
11.2 % |
|
NVDA
|
NVIDIA CORP |
11.0 % |
|
AMZN
|
AMAZON.COM INC |
7.3 % |
|
META
|
META PLATFORMS INC CLASS A |
5.4 % |
|
TSLA
|
TESLA INC |
3.4 % |
|
LLY
|
ELI LILLY AND CO |
3.4 % |
|
V
|
VISA INC CLASS A |
2.7 % |
|
GOOGL
|
ALPHABET INC CLASS A |
2.5 % |
|
MA
|
MASTERCARD INC CLASS A |
2.1 % |
Top 10 holdings shown, out of 70 total holdings.
Related ETFs: MGK vs Peers
Comparison highlights key differences on cost, coverage, and focus within sector ETFs.
Investment Strategy
MGK tracks the CRSP US Mega Cap Growth Index, which includes the largest U.S. companies exhibiting growth characteristics. The index methodology uses fundamental factors such as historical and projected earnings growth, sales growth, and valuation metrics to identify growth stocks. The fund is market-cap weighted, meaning larger companies have a greater influence on performance. MGK primarily holds common stocks and is rebalanced quarterly to align with index changes. Unlike actively managed funds, MGK does not attempt to outperform its benchmark but instead aims to replicate its performance with minimal tracking error.
Frequently Asked Questions
What is the expense ratio of MGK?
MGK has an expense ratio of 0.07%, making it one of the lowest-cost growth ETFs available.
How often does MGK rebalance its holdings?
MGK rebalances quarterly to align with changes in the CRSP US Mega Cap Growth Index.
Does MGK pay dividends?
Yes, MGK pays dividends quarterly, though its yield is typically lower than value-oriented ETFs due to its growth focus.
What percentage of MGK is invested in technology stocks?
As of 2025, approximately 45% of MGK's holdings are in the technology sector, with significant exposure to consumer discretionary and communication services as well.
Is MGK a good long-term investment?
MGK can be a strong long-term holding for investors who believe in the continued growth of mega-cap companies, though its performance may vary depending on market cycles favoring growth or value stocks.
Industry Overview
The Vanguard Mega Cap Growth ETF (MGK) focuses on the large-cap growth segment of the U.S. equity market. This segment is characterized by companies with above-average earnings growth, often in technology, consumer discretionary, and communication services. Investing in mega-cap growth stocks offers exposure to industry leaders with strong competitive advantages, but it also comes with higher valuation risks. MGK's benchmark, the CRSP US Mega Cap Growth Index, selects companies based on growth factors like earnings momentum and revenue growth. This makes MGK a compelling option for investors bullish on the continued dominance of tech-driven growth companies.
Alternative Comparison
Compared to the Vanguard Growth ETF (VUG), MGK has a more concentrated focus on mega-cap stocks, while VUG includes a broader range of large- and mid-cap growth companies. MGK's top holdings account for a larger portion of the portfolio, which can lead to higher returns during tech-led rallies but also greater downside risk. Another peer, the iShares Russell 1000 Growth ETF (IWF), has a slightly higher expense ratio (0.19%) and includes more mid-cap exposure. MGK stands out for its ultra-low fees and pure mega-cap growth orientation, making it ideal for investors seeking targeted exposure to the largest growth companies.
Issuer Overview
Vanguard is one of the world's largest investment management companies, known for its low-cost index funds and ETFs. Founded by John C. Bogle in 1975, Vanguard pioneered the index investing approach and remains a leader in passive investment strategies. The company's ETFs are widely regarded for their transparency, low fees, and adherence to benchmark indices. Vanguard's client-owned structure allows it to operate at cost, passing savings on to investors through minimal expense ratios.
Conclusion
The Vanguard Mega Cap Growth ETF (MGK) is a compelling choice for investors seeking low-cost, passive exposure to the largest U.S. growth stocks. Its focus on mega-cap leaders offers potential for strong long-term returns, though with higher volatility during market downturns. While MGK may underperform during value-driven cycles, its sector concentration in technology and innovation-driven industries positions it well for growth-oriented portfolios. Investors should weigh its benefits against the risks of concentration and interest rate sensitivity.
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