What is the main difference between Vanguard MGK and VOOG ETFs?

The primary difference lies in their portfolio breadth: MGK is more concentrated with fewer holdings heavily in tech, while VOOG offers broader diversification across S&P 500 growth stocks.

Which Vanguard ETF is better for tech exposure, MGK or VOOG?

MGK offers significantly higher exposure to the technology sector, with 69% of its assets invested in tech compared to VOOG's 44%.

Do Vanguard MGK and VOOG have different expense ratios?

No, both the Vanguard Mega Cap Growth ETF (MGK) and the Vanguard S&P 500 Growth ETF (VOOG) share the same low expense ratio of 0.07%.

Home / Business and Economy / MGK vs. VOOG: Which Vanguard ETF Reigns Supreme?

MGK vs. VOOG: Which Vanguard ETF Reigns Supreme?

14 Dec

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Summary

Both ETFs offer low expense ratios for large-cap U.S. growth stock exposure.
MGK holds 66 stocks with 69% in technology; VOOG holds 217 stocks.
VOOG offers broader diversification, while MGK is more concentrated in tech.

MGK vs. VOOG: Which Vanguard ETF Reigns Supreme?

Investors seeking exposure to large-cap U.S. growth stocks have two similar yet distinct options from Vanguard: the Mega Cap Growth ETF (MGK) and the S&P 500 Growth ETF (VOOG). Both funds boast identical low expense ratios, ensuring affordability for investors. However, their portfolio construction diverges significantly, offering different approaches to growth stock investing.

VOOG provides a broader diversification by holding 217 stocks, primarily within the S&P 500's growth sector. Technology represents a substantial 44% of its assets, with notable allocations to communication services and consumer cyclical sectors. This wider net aims to mitigate concentrated sector or single-stock risk, offering a more balanced exposure.

Conversely, MGK adopts a more focused strategy, comprising just 66 holdings. Its portfolio is heavily weighted towards technology, with nearly 69% of assets concentrated in this sector. While both ETFs are managed by Vanguard and share a similar investment objective, MGK's narrower focus presents a higher potential for volatility tied to the tech industry's performance.