Explore how sector focus, volatility, and income potential set these two Vanguard ETFs apart for different investment goals.
The Vanguard Mega Cap Growth ETF (MGK +2.15%) and the Vanguard S&P 500 ETF (VOO +1.95%) are both designed for investors seeking exposure to large U.S. companies, but their approaches diverge: MGK tracks the largest growth stocks, while VOO mirrors the entire S&P 500.
This comparison highlights key differences in cost, performance, risk, and portfolio construction to help clarify which fund may appeal more to different investors.
Snapshot (cost & size)
MetricVOOMGKIssuerVanguardVanguardExpense ratio0.03%0.07%1-yr return (as of Feb. 2, 2026)15.60%16.88%Dividend yield1.13%0.35%Beta (5Y monthly)1.001.20AUM$839 billion$32 billion
Beta measures price volatility relative to the S&P 500. The 1-yr return represents total return over the trailing 12 months.
VOO is slightly more affordable on fees with a lower expense ratio. It also provides a higher dividend yield, making VOO the lower-cost and higher-payout option for income-focused investors.
Performance & risk comparison
MetricVOOMGKMax drawdown (5 y)-24.53%-36.02%Growth of $1,000 over 5 years$1,850$1,970
What’s inside
MGK targets the largest U.S. growth stocks, holding just 60 stocks. Around 55% of the portfolio is allocated to tech, followed by communication services at 17% and consumer cyclical at 13%.
Its top three positions — Nvidia, Apple, and Microsoft — combined make up nearly 36% of assets. Launched over 18 years ago, MGK offers focused, long-term exposure to mega-cap growth leaders.
VOO, by contrast, tracks the S&P 500 and holds 504 stocks, providing broader diversification. Its sector mix is less concentrated, with 35% in technology, 13% in financial services, and 11% in communication services. Its top holdings match MGK’s, but their combined weight is lower, reflecting VOO’s more balanced approach.
For more guidance on ETF investing, check out the full guide at this link.
What this means for investors
VOO and MGK both focus on large companies, but MGK takes a narrower approach by only including mega-cap stocks — which are generally defined as those with market caps of at least $200 billion.
More targeted funds like MGK carry both risks and rewards. Less diversification can make it more susceptible to market swings, as evidenced by MGK’s steeper max drawdown and higher beta, suggesting greater price fluctuations.
VOO contains a wider variety of stocks, making it slightly more stable between the two funds. It’s less focused on tech stocks, which can help limit volatility, and its assets are more evenly spread across the fund. The two funds share the same top three holdings, but those stocks make up close to 36% of MGK’s portfolio compared to around 21% for VOO.
Nvidia, Apple, and Microsoft have performed particularly well in recent years, resulting in MGK earning higher one- and five-year total returns than VOO. But if those stocks stumble, it could hit MGK harder.
If you’re looking for a well-diversified fund that contains both large- and mega-cap stocks, VOO might be the better fit with its broad S&P 500 focus. On the other hand, if you prefer a more targeted approach that could result in higher earning potential, MGK may be more appealing.
