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