Better Vanguard Growth ETF: MGK vs. VONG

• MGK is much concentrated successful mega-cap exertion stocks and has less holdings than VONG.

• MGK delivered a higher 1-year instrumentality but experienced a deeper five-year drawdown.

• Both funds complaint the aforesaid debased disbursal ratio, but VONG offers a somewhat higher dividend yield.

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The Vanguard Mega Cap Growth ETF (NYSEMKT:MGK)and Vanguard Russell 1000 Growth ETF (NASDAQ:VONG) some people large-cap U.S. maturation stocks with akin debased costs, but MGK is much tech-heavy and concentrated, portion VONG is broader and pays a marginally higher yield.

This examination looks astatine 2 fashionable maturation ETFs from Vanguard: VONG, tracking the Russell 1000 Growth Index, and MGK, pursuing the CRSP US Mega Cap Growth Index. Both purpose for semipermanent superior appreciation from large-cap maturation companies, but disagree successful portfolio makeup, diversification, and caller performance.

Beta measures terms volatility comparative to the S&P 500; beta is calculated from five-year play returns. The 1-yr instrumentality represents full instrumentality implicit the trailing 12 months.

Both funds are arsenic affordable astatine a 0.07% disbursal ratio, but VONG pays a somewhat higher dividend output portion MGK focuses much narrowly connected superior appreciation.

MGK focuses connected the largest U.S. maturation stocks, with 70% of assets successful technology, 12% successful user cyclicals, and 6% successful healthcare. The money holds conscionable 69 companies, and arsenic of its 18.1-year history, the apical 3 positions — NVIDIA (NASDAQ:NVDA) astatine 12.97%, Apple (NASDAQ:AAPL) astatine 12.07%, and Microsoft (NASDAQ:MSFT) astatine 10.62% — predominate its portfolio, reflecting a dense tilt toward mega-cap tech names.

VONG is much diversified with 394 holdings and a assemblage premix of 53% technology, 13% user cyclicals, and 13% connection services. Its apical 3 stocks — NVIDIA astatine 12.22%, Apple astatine 11.12%, and Microsoft astatine 10.14% — are akin to MGK’s, but their weights are smaller, indicating little attraction risk. VONG’s broader handbasket whitethorn entreaty to those seeking vulnerability crossed much maturation companies.

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The Vanguard Mega Cap Growth ETF (MGK) and Vanguard Russell 1000 Growth ETF (VONG) are some for investors looking to put successful maturation stocks, but they person meaningful differences.