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Both funds share identical expense ratios, but VONG offers a slightly higher dividend yield and owns more shares.
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MGK has seen a higher one-year total return and a greater tilt in the tech sector, while VONG spreads its bets across nearly 400 holdings.
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Risk metrics favor VONG, which showed a milder peak decline and lower beta over the past five years.
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He Vanguard Mega Cap Growth ETF (NYSEMKT:MGK) and Vanguard Russell 1000 Growth ETF (NASDAQ:VONG) Both are Vanguard’s low-cost, passively managed funds focused on U.S. large-cap growth stocks.
MGK focuses on the largest mega-cap names, while VONG tracks a broader index that covers a broader range of large-cap growth companies. Here’s how the two compare for investors weighing the tradeoffs between concentration and diversification.
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Metric
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MGK
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VONG
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Editor
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Vanguard
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Vanguard
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Expense ratio
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0.07%
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0.07%
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1 year return (starting December 27, 2025)
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17.59%
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15.46%
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Dividend yield
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0.37%
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0.45%
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AUM
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$32.7 billion
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$44.6 billion
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Beta (5 years monthly)
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1.24
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1.17
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Beta measures price volatility relative to the S&P 500. The 1-year return represents the total return over the past 12 months.
Both funds are equally affordable and charge an annual expense ratio of 0.07%. However, VONG leads in dividend yield, which may appeal to those looking for a marginally higher income stream from growth stocks.
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Metric
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MGK
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VONG
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Maximum reduction (5 years)
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-36.02%
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-32.72%
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$1,000 growth in 5 years
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$2,080
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$2,010
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VONG tracks the Russell 1000 Growth Index, owns 391 stocks, and provides exposure to a broad portion of the U.S. growth market. Technology leads with 55% of total assets, with consumer cyclicals and communication services accounting for substantial portions.
Their first positions are NVIDIA, Appleand microsoftand the fund’s 15-year track record indicates stability and maturity. VONG’s broader list means less risk of concentration on single names.
MGK, on the other hand, has even more technological weight: the sector represents 58% of total assets. It also has only 66 names, making it more concentrated on larger companies. Its three main holdings coincide with those of VONG, but with higher individual weights.
For more guidance on investing in ETFs, check out the full guide at this link.
VONG and MGK focus heavily on technology stocks with the potential for above-average returns, making them smart investments for those seeking technology exposure within a growth ETF.
However, the two funds differ mainly in diversification. VONG owns almost 400 shares, compared to just 66 for MGK. That alone is a substantial difference between the two, but MGK’s greater tilt toward technology makes it even less diversified than VONG.
However, less diversification is not always bad. A more targeted ETF can generate higher returns, as lower-performing stocks are less likely to drag down the fund’s overall performance.
While MGK has outperformed VONG over the past 12 months and five years, the difference is marginal. So when considering pure performance, it seems that perhaps MGK’s higher level of risk may not have necessarily been worth it.
Looking ahead, MGK has the potential to overtake VONG if the tech sector continues to prosper. But if a tech crisis is around the corner, VONG’s greater diversification could help mitigate some risks and lead to slightly smoother price movements.
ETFs: exchange-traded fund; a pooled investment fund that trades on stock exchanges like a stock.
Expense ratio: The annual fee, as a percentage of assets, charged by a fund to cover operating costs.
Dividend yield: Annual dividends paid by a fund or stock divided by its current price, expressed as a percentage.
Total profitability: The price of the investment changes plus all dividends and distributions, assuming those payments are reinvested.
Beta: A measure of the volatility of an investment compared to the broader market, usually the S&P 500.
AUM: Assets under management; the total market value of the assets that a fund manages on behalf of investors.
Maximum reduction: The largest percentage drop from a fund’s peak value to its lowest point during a specific period.
Concentration risk: The risk of loss due to large investments in a small number of holdings or sectors.
Diversification: Spread investments across multiple assets to reduce the risk of any individual holding.
Sector inclination: When a fund has a larger allocation to a particular industry or sector than the market as a whole.
Russell 1000 Growth Index: A stock index that tracks the performance of U.S. large-cap growth companies.
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Katie Brockman has positions in Vanguard Scottsdale Funds – Vanguard Russell 1000 Growth ETF. The Motley Fool has positions and recommends Apple, Microsoft and Nvidia. The Motley Fool recommends the following options: long January 2026 $395 calls on Microsoft and short January 2026 $405 calls on Microsoft. The Motley Fool has a disclosure policy.
VONG vs. MGK: Is diversified growth or mega-cap concentration better for investors? was originally published by The Motley Fool
