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ETF Comparison

MGK vs VUG: Which Is the Better Pick in 2026?

A head-to-head comparison of Vanguard Mega Cap Growth ETF and Vanguard Morningstar Growth ETF covering yield, cost, risk, and income potential.

Data updated September 18, 2026

Best for

  • MGKInvestors who want broad equity exposure.
  • VUGInvestors who want a growth tilt and can accept bigger swings for higher upside.

Jump to the side-by-side numbers

Visual comparison

Key metrics

Projected income on $10K

Projections assume the current yield and share price remain constant. Actual results will vary.

Total returns

100% reinvested · ex-date convention. Period returns use this fixed assumption, independent of chart settings.

MGK has outpaced VUG over the trailing twelve months, posting a 15.14% total return against 12.93%. The lead holds up over 10 years too: MGK has compounded at 18.94% a year, against 17.93% for VUG. Figures are total returns: price change plus every distribution reinvested.

Total return and risk statistics by fund. Each row is one fund; each column is one period or statistic.
SymbolYTD1Y3Y5Y10YSince Dec 2007Volatility Sharpe Sortino Max drawdown
MGK10.82%15.14%24.79%13.68%18.94%13.82%20.2%0.881.27-23.4%
VUG9.77%12.93%23.98%12.56%17.93%13.13%19.7%0.871.25-22.8%

Total return with all distributions reinvested on the ex-dividend date (a modeling convention, not the cash-settlement date), split-adjusted, as of September 18, 2026. YTD and 1Y are cumulative; windows of one year or longer are annualized. “Since Dec 2007” measures every fund from December 21, 2007 — the start of shared available history — so all funds share one comparison window. Volatility is the annualized standard deviation of daily total returns over the trailing 3 years. Sharpe and Sortino divide the annualized return in excess of the risk-free rate by, respectively, that volatility and the downside deviation (both over the trailing 3 years) — higher is better. Max drawdown is the largest peak-to-trough total-return decline over the same window — shallower is better.

Side-by-side snapshot

Side-by-side snapshot. Each row is one metric; each column is one fund.
MetricMGKVUG
Full nameVanguard Mega Cap Growth ETFVanguard Morningstar Growth ETF
IssuerVanguardVanguard
Underlying indexCRSP US Mega Cap Growth IndexMorningstar US Large Cap Growth Index
Last Close$90.89 as of September 18, 2026$88.75 as of September 18, 2026
Distribution rate0.37%0.42%
Distribution Safety Score™ 9490
Safety-Adjusted Yield 0.35%0.38%
Expense ratio0.05%0.03%
AUM$33.3B$228B
Distribution frequencyQuarterlyQuarterly
ObjectiveProvide exposure to the fund's underlying index or strategy per issuer materials.Seeks to track the Morningstar US Large Cap Growth Index.
Asset classEquityEquity
Inception date12/17/200701/26/2004
Beta1.281.27
Last dividend$0.084$0.0923
Ex-dividend date06/26/202606/26/2026

Bottom lineChoose MGK if you want broad equity exposure. Choose VUG if you want a growth tilt and can accept bigger swings for higher upside.

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Vanguard
ETFs116
Total AUM$4663B

ETFs and AUM reflect what Dividend Vision tracks — the issuer's full lineup may be larger.

Vanguard is one of the largest and most established ETF issuers, known for low-cost, broadly diversified fund offerings built on passive indexing principles. Their lineup spans multiple asset classes and strategies, including core equity and bond index funds, dividend-focused portfolios, ESG-screened options, factor-based strategies, sector exposure, target-date retirement funds, and international investments across developed and emerging markets. The platform is characterized by its emphasis on accessibility and cost efficiency across a comprehensive range of fund families, serving both individual investors seeking broad market exposure and those pursuing specific income, sustainability, or thematic objectives.

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Quick verdict

MGK (Vanguard Mega Cap Growth ETF) and VUG (Vanguard Morningstar Growth ETF) are both quarterly-pay dividend ETFs, but they take different approaches.

VUG offers the higher yield at 0.42% vs 0.37% for MGK. A higher yield means more current income per dollar invested, though it may come with different risk characteristics.

VUG is cheaper with an expense ratio of 0.03% compared to 0.05%.

They have different reference exposures: MGK is linked to CRSP US Mega Cap Growth Index while VUG is linked to Morningstar US Large Cap Growth Index, which means their performance drivers differ.

VUG is the larger fund by assets ($228B), but assets alone do not establish trading costs or liquidity.

Deep dive

Yield & income

On a $10,000 investment, MGK would generate roughly $3.08/month, while VUG would produce $3.50/month, at current distribution rates. Both pay quarterly distributions.

MGK yield0.37%
VUG yield0.42%
Monthly diff on $10K$0.42

Cost & efficiency

Over 10 years on $10,000, MGK would cost approximately $50 in fees vs $30 for VUG (simplified, not compounded). The $20.00 difference may be offset by yield or performance.

MGK ER0.05%
VUG ER0.03%

Strategy & risk

MGK tracks CRSP US Mega Cap Growth Index with an index approach, while VUG tracks Morningstar US Large Cap Growth Index with a growth approach. Beta is 1.28 for MGK and 1.27 for VUG — effectively similar market sensitivity.

MGK beta1.28
VUG beta1.27

Fund details

MGK is managed by Vanguard (launched 12/17/2007) with $33.3B in assets. VUG is managed by Vanguard (launched 01/26/2004) with $228B in assets.

MGK AUM$33.3B
VUG AUM$228B
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Frequently asked questions

What is the current distribution rate for MGK and VUG?

MGK currently distributes 0.37% and VUG 0.42%, based on fund data updated September 2026. Distribution rate moves with both the payout and the share price, so check the as-of date before relying on either figure.

Is MGK or VUG better for dividend income?

It depends on your goals. VUG currently offers the higher distribution yield, which means more income per dollar invested. However, a lower-yield fund may offer better total return or lower volatility. Consider your time horizon and risk tolerance.

What is the difference between MGK and VUG?

MGK (Vanguard Mega Cap Growth ETF) tracks CRSP US Mega Cap Growth Index with an index approach, while VUG (Vanguard Morningstar Growth ETF) tracks Morningstar US Large Cap Growth Index with a growth approach. They are issued by Vanguard and Vanguard respectively.

Can I hold both MGK and VUG?

Yes — nothing prevents holding both. Whether the combination actually diversifies depends on how much the underlying exposures overlap, which isn't fully measurable from the data on this page; review each security's holdings, sector, and strategy before treating them as complementary.

Is MGK or VUG safer?

By Dividend Vision's Distribution Safety Score — a rules-based 0–100 estimate of how resilient a distribution looks, where higher is safer — MGK scores 94, VUG scores 90, so MGK's payout currently looks the more resilient of the two. No score makes an investment risk-free — treat this as a screening signal, not a guarantee.

Which has lower fees, MGK or VUG?

MGK has an expense ratio of 0.05% while VUG charges 0.03%. Lower fees mean more of your investment returns stay in your pocket over time.

How much income does $10,000 in MGK vs VUG generate?

At current rates, $10,000 in MGK would generate roughly $3.08 per month ($37.00 annually). The same in VUG would produce about $3.50 per month ($42.00 annually).

Which has performed better historically, MGK or VUG?

MGK has outpaced VUG over the trailing twelve months, posting a 15.14% total return against 12.93%. The lead holds up over 10 years too: MGK has compounded at 18.94% a year, against 17.93% for VUG. Figures are total returns: price change plus every distribution reinvested. Past performance does not guarantee future results.

More comparisons to explore

MGK vs VUG — at a glance

Generated September 19, 2026.

The key distinction is scope: MGK tilts toward the largest companies (mega cap), while VUG casts a wider net across large-cap growth stocks. Both are low-cost, quarterly-paying index funds designed for growth-oriented investors.

How they differ

MGK's underlying index is narrower, focusing exclusively on mega-cap growth names, which concentrates exposure toward the largest market-cap companies. VUG's index is broader and encompasses the full large-cap growth universe, giving it more stock diversity beyond the mega-cap tier. VUG's $228B in AUM dwarfs MGK's $33.3B, reflecting VUG's longer track record (inception 01/26/2004 versus 12/17/2007) and broader appeal. Both funds distribute 0.37% and 0.42% respectively, in line with their growth-stock mandates.

Who each is best for

MGK: Fits investors who want maximum concentration in the highest-market-cap growth stocks and are comfortable with higher beta exposure (1.28) to the largest mega-cap performers.

VUG: Fits investors seeking diversified large-cap growth exposure across a wider band of companies, with slightly lower beta (1.27) and the benefit of a deeper asset base and longer operating history.

Key risks to know

  • Concentration in mega caps: MGK's narrower mega-cap mandate means its largest holdings overlap heavily with the "Magnificent Seven" tech and growth leaders; a downturn in that cohort will hit MGK harder than VUG.
  • Index tracking divergence: The two funds track different indices with different methodologies; their performance will diverge significantly during periods when mega-cap growth outperforms or underperforms broader large-cap growth.
  • Growth-sector sensitivity: Both ETFs carry elevated beta (MGK 1.28, VUG 1.27) and will amplify downturns in growth-heavy market environments, particularly when interest-rate expectations shift.
  • Valuation cyclicality: Large-cap growth's premium valuations compress in high-rate or recession scenarios; both funds offer minimal yield (0.37%–0.42%) and rely heavily on capital appreciation, which is not guaranteed.

Bottom line

If you want maximum exposure to the largest mega-cap growth engines and accept higher concentration risk, MGK delivers that with a tighter index. If you prefer broader large-cap growth diversification with a marginally cheaper expense ratio and substantially larger fund size, VUG offers that tradeoff. Past performance does not predict future results, and both funds' returns depend on growth-stock valuations and economic conditions ahead.

AI-generated analysis for educational purposes only. Verify important details independently; past performance does not guarantee future results.

Learn the method

The metrics behind this comparison, explained in the Academy.

Dividend growth vs. high yield Yield on cost, explained How expense ratios eat returns

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