If you’re looking to invest in America’s top growth companies for the long term, MGK (Vanguard Mega Cap Growth ETF) is a must-consider option. With holdings like Apple, Microsoft, NVIDIA, and Amazon, this ETF gives you direct exposure to the largest and most influential growth stocks in the U.S. market.
What is MGK ETF?
MGK is an exchange-traded fund managed by Vanguard, one of the most trusted names in the ETF industry. It tracks the CRSP US Mega Cap Growth Index, which includes the largest U.S. companies with strong earnings growth and long-term growth potential.
Key Facts:
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ETF Name: Vanguard Mega Cap Growth ETF (MGK)
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Issuer: Vanguard
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Inception Date: December 17, 2007
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Assets Under Management (AUM): ~$21.8 billion
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Expense Ratio: 0.07% (very low)
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Benchmark Index: CRSP US Mega Cap Growth Index
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Dividend Frequency: Quarterly
Top Holdings of MGK (as of early 2025)
MGK has a concentrated portfolio focused on large-cap tech and growth companies. Its top 10 holdings represent over 66% of total assets.
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Apple (AAPL) – 13.97%
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Microsoft (MSFT) – 11.18%
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NVIDIA (NVDA) – 10.97%
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Amazon (AMZN) – 7.27%
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Meta Platforms (META) – 5.41%
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Tesla (TSLA) – 3.37%
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Alphabet A (GOOGL) – 2.50%
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Alphabet C (GOOG) – 2.03%
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Visa (V) – 2.72%
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Eli Lilly (LLY) – 3.38%
MGK Performance Overview
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1-Year Return: Approximately +32.97% (as of 2024)
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10-Year Average Annual Return: ~16.56%
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Price-to-Earnings Ratio (P/E): ~29x
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Dividend Yield: ~0.50%
MGK is not designed for dividend income. Instead, it focuses on capital growth, delivering impressive long-term returns by targeting top-tier growth stocks.
Key Advantages of MGK
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Exposure to U.S. Tech Giants
Invest directly in big tech and growth leaders like Apple, Microsoft, and NVIDIA. -
Low Expense Ratio
At just 0.07%, MGK is one of the most cost-effective ETFs in the growth category. -
Strong Long-Term Performance
By focusing on mega-cap growth stocks, MGK has outperformed many broad-market ETFs over the years. -
High Liquidity and Trust
As a Vanguard ETF, MGK benefits from high trading volumes, low tracking error, and brand trust.
Potential Drawbacks of MGK
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Heavy Tech Exposure
Over 60% of the ETF is weighted toward the tech sector. This creates sector concentration risk. -
High Concentration in Top Holdings
The top 10 stocks account for nearly two-thirds of the portfolio. Weak performance from a few could impact the entire fund. -
Interest Rate Sensitivity
Growth stocks typically underperform in rising interest rate environments due to future earnings being discounted more heavily.
MGK vs QQQ vs VUG – ETF Comparison
| Feature | MGK | QQQ | VUG |
|---|---|---|---|
| Index | CRSP US Mega Cap Growth | NASDAQ-100 | CRSP US Large Cap Growth |
| Issuer | Vanguard | Invesco | Vanguard |
| Expense Ratio | 0.07% | 0.20% | 0.04% |
| Tech Exposure | ~60%+ | ~50% | ~45% |
| Focus | Mega-cap growth stocks | Large tech & innovation | Broad large-cap growth |
MGK is more concentrated than QQQ and VUG, giving you targeted exposure to ultra-large growth stocks with more stability than mid or small-cap growth ETFs.
Who Should Invest in MGK?
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Long-term investors who believe in U.S. tech and mega-cap growth
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Investors who want low fees and high liquidity
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Those who prioritize capital gains over dividend income
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Investors seeking a core growth ETF for a retirement or long-term portfolio
Final Thoughts – Why MGK Deserves a Spot in Your Portfolio
MGK ETF gives you direct access to the most powerful and innovative companies in the U.S., with low costs and a solid historical track record. If you’re looking to grow your wealth over the long run and believe in the continued dominance of mega-cap tech and growth stocks, MGK can be a cornerstone of your portfolio.
"This post is intended to introduce the ETF and should not be considered a buy recommendation."
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