What distinguishes mega-cap growth from mega-cap value investing?

Mega-cap growth focuses on very large companies expected to grow revenues or earnings faster than the market, often paying low dividends. Mega-cap value targets large companies considered undervalued relative to fundamentals, potentially offering higher yields. MGK and MGV represent these respective styles within Vanguard's range. Investors should understand that growth stocks may be more volatile during market downturns, while value stocks may lag during strong bull markets driven by high-growth sectors.

How do index tracking and replication methods affect ETF performance?

ETFs like MGK and MGV aim to track specific indexes. The provided fund data notes that index tracking methodology details are not available for either fund. Generally, replication can be full physical buying of all securities or sampling, buying a representative subset. Without knowing the exact method, investors cannot assess potential tracking error risks or how closely the fund mirrors its benchmark compared to peers.

Why is expense ratio important for long-term ETF holding?

The expense ratio is an annual fee deducted from fund assets, reducing investor returns. Both MGK and MGV have a low expense ratio of 0.05%. While 0.05% seems small, it compounds over years. A higher fee would significantly erode gains, especially in lower-return environments. For these funds, the identical 0.05% fee means investors are not paying a premium for growth or value styles specifically.

How do the top holdings of MGK and MGV differ?

MGK, the growth fund, holds companies like NVDA at 14.30% and AAPL at 13.01%, indicating concentration in tech growth leaders. MGV, the value fund, has MU at 5.00%, JPM at 4.41%, and BRK.B at 3.30%. The listed top ten holdings for both funds are completely distinct. This lack of overlap highlights how differently these two mega-cap ETFs approach the market despite similar sizes and fees.

What does the dividend yield difference imply for income investors?

MGK has a dividend yield of 0.31%, while MGV yields 1.85%. For investors seeking current income, MGV offers substantially more cash distribution relative to its price. However, yield alone doesn't determine total return. Growth funds like MGK often reinvest earnings rather than distributing them, aiming for capital appreciation. Investors must weigh the need for regular income against potential growth prospects when choosing between these styles.

Are there shared holdings between MGK and MGV?

Based on the provided top-ten holdings data, there are no shared top-10 holdings between MGK and MGV. MGK's largest positions include NVDA and AAPL, while MGV's include MU and JPM. This separation suggests that the two funds are actively pursuing their respective growth and value strategies with little overlap in their core largest positions, providing distinct exposures within the mega-cap universe.

How do net assets influence ETF trading?

MGK has $34.1 billion in net assets, while MGV has $13.9 billion. Generally, larger assets under management can imply better liquidity and tighter bid-ask spreads due to higher trading volumes. While MGV's $13.9 billion is still substantial, MGK's larger size might offer slightly better trade execution for very large orders. However, both funds are managed by Vanguard, which typically ensures competitive liquidity standards.

Which market capitalisation do these funds target?

Both MGK and MGV target mega-cap companies, defined as extremely large corporations by market capitalisation. MGK selects those classified as growth, while MGV selects those classified as value. This focus on mega-caps generally means exposure to established, widely recognised global leaders, which may offer stability compared to mid or small caps, though they are not immune to market-wide economic shocks or sector-specific downturns.

How do ETF dividends work for shareholders?

ETFs like MGK and MGV collect dividends from underlying companies, such as JPM or AAPL. These dividends are aggregated and distributed to shareholders, typically quarterly. MGK's 0.31% yield reflects lower distributions from growth firms, while MGV's 1.85% reflects higher payouts from value-oriented companies. Investors can often choose to receive cash or automatically reinvest dividends. Reinvestment affects total return but does not change the underlying fund structure.

Is financial advice provided in this ETF comparison?

No, this page provides educational information only. It compares factual data points such as expense ratios, dividend yields, and top holdings for MGK and MGV. It does not offer recommendations to buy, sell, or hold any security. Investors should consider their own financial situation, risk tolerance, and investment goals before making decisions, and may wish to consult with a qualified financial advisor for personalised advice.

MGK vs MGV

Two funds, one decision: we compare cost, performance and what each ETF actually holds in November 2026.

This page compares the Vanguard Mega Cap Growth ETF (MGK) and the Vanguard Mega Cap Value ETF (MGV), examining their fees, holdings, dividends and how each fund tracks its respective market. Both are large-cap Vanguard ETFs with 0.05% expense ratios but differ in focus: MGK targets growth, MGV targets value. Educational content, not financial advice.

Fund Snapshot

Key Fund Metrics

MGK

Metric

MGV

0.05%

Expense Ratio

0.05%

0.31%

Dividend Yield

1.85%

$34.09B

Net Assets

$13.87B

Holdings

128

Dec 17, 2007

Inception Date

Dec 17, 2007

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Index Tracked

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Large Growth

Fund Category

Large Value

Both funds charge the same annual fee.

Shared Top Holdings

These funds do not share any of their top holdings.

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Investment Analysis

MGK

Pros

MGK features a low expense ratio of 0.05% while managing $34.1 billion in assets, indicating high investor adoption.
Operating since December 2007, the fund benefits from a long track record within the Vanguard mega-cap growth family.
MGK provides focused exposure to mega-cap growth leaders, capturing a 0.31% yield from high-growth sector constituents.

Considerations

Top holdings include significant concentration risk with NVDA at 14.30% and AAPL at 13.01% dominating the portfolio weight.
A dividend yield of 0.31% is notably low, meaning income generation is minimal compared to broader equity market averages.
The fund's index tracking methodology is not available, limiting transparency for investors evaluating the underlying replication strategy.

MGV

Pros

MGV offers a yield of 1.85%, providing substantially higher income potential than its growth-focused mega-cap counterpart fund.
With an expense ratio of 0.05%, the fund maintains low operational costs, preserving returns for investors over long holding periods.
Holdings such as JPM, XOM and JNJ provide broad industrial and financial sector exposure within the mega-cap value style.

Considerations

The fund's top holding MU is weighted at 5.00%, resulting in relatively dispersed concentration compared to other mega-cap ETFs.
Net assets stand at $13.9 billion, which is smaller than comparable mega-cap funds and might affect trading liquidity levels.
Like its growth sister fund, MGV's specific index methodology is not available, reducing transparency into replication processes.

About MGK and MGV

MGK (MGK)

The Vanguard Mega Cap Growth ETF aims to track the investment results of the CRSP US Mega Cap Growth Index, providing exposure to large-capitalisation companies in the United States that demonstrate consistent growth characteristics. With a low expense ratio of 0.05%, it offers a cost-effective way to access leading growth firms across various sectors. The fund holds around 60 stocks, reflecting a concentrated portfolio focused on the largest and fastest-growing companies. Investors should note that while the fund has a dividend yield of approximately 0.31%, returns are not guaranteed, and values can rise and fall.

MGV (MGV)

The Vanguard Mega Cap Value ETF is an exchange-traded fund designed to provide exposure to large-cap stocks that are considered undervalued relative to their peers. With a low expense ratio of 0.05%, this fund aims to offer cost-effective access to the value segment of the mega-cap market. It holds approximately 128 companies, focusing on firms with strong fundamentals that the market may have overlooked. Since its inception in December 2007, it has managed net assets of around USD 13.87 billion. The fund currently provides a dividend yield of 1.85%, making it a potential option for investors seeking value in large companies. However, like all investments, values can rise and fall, and returns are not guaranteed.

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MGK vs MGV

Fund Snapshot