What does 'mega cap growth' mean?

A 'mega cap' refers to companies with very large market capitalisations, often in the hundreds of billions of pounds or more. 'Growth' stocks are those expected to grow earnings or revenues faster than average companies. MGK specifically tracks this mega-cap growth segment, meaning it holds only the largest, high-growth companies, whereas VUG tracks a broader US large-cap growth universe.

How do the fees for MGK and VUG compare?

MGK has an expense ratio of 0.05 per cent, while VUG charges 0.03 per cent. This means for every £1,000 invested, MGK deducts £0.50 annually and VUG deducts £0.30. Although 0.02 percentage points seems small, this difference compounds over time. VUG has the slightly lower fee structure based on the provided data.

What do expense ratios affect in real terms?

The expense ratio is an annual fee deducted from the fund's assets. It does not reduce your share price directly but lowers the overall return. For example, if the underlying holdings grow by 10 per cent, an ETF with a 0.05 per cent fee (MGK) might return approximately 9.95 per cent, while a 0.03 per cent fee (VUG) might return 9.97 per cent. This small difference accumulates over years.

What is the difference in fund size between the two ETFs?

VUG is significantly larger, with net assets of $232.1 billion, compared to MGK's $34.1 billion. Larger funds often provide exceptional liquidity, meaning it is generally easier to buy or sell shares without affecting the price. While both are substantial size, VUG's asset base is much higher, providing ample liquidity for investors.

How similar are the top holdings in these two funds?

The top ten holdings are identical for both MGK and VUG, though the specific weightings vary slightly. Both funds list NVDA, AAPL, MSFT, GOOGL, AMZN, GOOG, AVGO, META, TSLA, and LLY as their primary holdings. This indicates a very high level of overlap, suggesting the two ETFs are heavily exposed to the same technology and growth giants.

Which fund offers a higher dividend yield?

Based on the provided data, VUG offers a dividend yield of 0.37 per cent, which is slightly higher than MGK's 0.31 per cent. It is important to note that both yields are modest. Growth-focused ETFs typically prioritise capital appreciation (share price increase) over distributing cash dividends to shareholders, which is reflected in their low yields.

What does the inception date tell us about the funds?

MGK was launched on 17 December 2007, while VUG has a longer track record, having launched on 26 January 2004. This indicates that VUG has experienced a wider range of market cycles and has been available for investment for approximately three years longer than MGK. Both funds have over a decade of operating history, providing long-term track records for investors to analyse.

How can investors distinguish between the two if the top holdings are the same?

The distinction lies in the market focus. VUG covers the broader 'US Growth' category (Large Growth), while MGK is strictly 'Mega Cap Growth'. This means while the top companies match perfectly, VUG likely includes large-cap companies that are not quite 'mega' in size, creating a more diversified universe below the top tier. MGK restricts its universe to the absolute largest companies only.

Is this comparison financial advice?

No, this content is strictly educational. It compares factual data points such as fees, yields, and holdings for MGK and VUG to help beginners understand fund comparisons. Investors should consider their own goals, risk tolerance, and seek independent professional advice before making any investment decisions. Historical data and expense ratios do not guarantee future performance.

MGK vs VUG

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

This page compares Vanguard Mega Cap Growth ETF (MGK) and Vanguard US Growth ETF (VUG) on fees, holdings, and dividends. It explains how each fund tracks its market focus. Educational content, not financial advice.

Fund Snapshot

Key Fund Metrics

MGK

Metric

VUG

0.05%

Expense Ratio

0.03%

0.31%

Dividend Yield

0.37%

$34.09B

Net Assets

$232.11B

Holdings

151

Dec 17, 2007

Inception Date

Jan 26, 2004

–

Index Tracked

–

Large Growth

Fund Category

Large Growth

VUG costs about $2.00 less per year for every $10,000 invested.

Shared Top Holdings

Holding	MGK	VUG
NVDANVIDIA Corporation	14.30%	13.62%
AAPLApple Inc.	13.01%	12.49%
MSFTMicrosoft Corporation	9.97%	10.12%
GOOGLAlphabet Inc.	5.49%	5.34%
AMZNAmazon.com, Inc.	4.75%	4.76%
GOOGAlphabet Inc.	4.32%	4.21%
AVGOBroadcom Inc.	4.09%	4.10%
METAMeta Platforms, Inc.	4.05%	3.39%
TSLATesla, Inc.	3.35%	2.79%
LLYEli Lilly and Company	3.20%	2.64%

Discover More Comparisons

MGK vs QQQM

Compare MGK and QQQM large growth ETFs. Analyse the 0.05% vs 0.15% expense ratio, net assets, dividend yields, top holdings and concentration levels.

MGK vs VGT

Compare MGK and VGT ETFs. Review fees, dividends, and holdings. Understand differences between these two Vanguard funds for educational purposes.

MGK vs MGV

Compare MGK and MGV on fees, holdings, dividends, and tracking. Both have 0.05% expenses; MGK yields 0.31%, MGV yields 1.85%. Growth vs value focus.

Investment Analysis

MGK

Pros

MGK charges a low expense ratio of 0.05 per cent.
It holds $34.1 billion in net assets, ensuring sufficient scale.
The fund has a long track record since its 2007 inception.

Considerations

Its expense ratio is higher than comparable growth ETFs.
Dividend yield is modest at 0.31 per cent.
Top holdings exhibit significant concentration in technology stocks.

VUG

Pros

VUG offers a very low expense ratio of 0.03 per cent.
With $232.1 billion in assets, liquidity is exceptionally strong.
It provides a long investment history since its 2004 launch.

Considerations

The fund has a low dividend yield of 0.37 per cent.
Holdings are heavily concentrated in a few mega-cap growth names.
It excludes small and mid-cap companies from its universe.

About MGK and VUG

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.

VUG (VUG)

This exchange-traded fund aims to track the performance of large-capitalisation U.S. companies classified as growth stocks. It generally holds shares of businesses expected to expand faster than the broader market, often focusing on sectors like information technology and consumer discretionary. The fund maintains a low expense ratio, which helps preserve investor returns over time. While growth stocks can offer significant capital appreciation during favourable economic conditions, they may also experience higher volatility and sharper declines when market sentiment shifts or interest rates rise. With over 150 holdings, the fund provides diversified exposure to leading U.S. growth firms. Investors should note that past performance is not indicative of future results, and values can go down as well as up. The fund pays a modest dividend yield, but its primary objective remains capital growth rather than income generation. It is suitable for those seeking long-term exposure to the growth segment of the U.S. equity market.

Buy MGK or VUG in Nemo

🆓

Zero Commission

Trade stocks, ETFs, and more with zero commission. Keep more of your returns.

🔒

Trusted & Regulated

Part of Exinity Group 2015, serving over a million customers globally.

💰

6% Interest on Cash

Earn 6% AER on uninvested cash with daily interest payments.

MGK vs VUG

Fund Snapshot