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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 Growth ETF covering yield, cost, risk, and income potential.

Data updated August 13, 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

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 Growth ETF
IssuerVanguardVanguard
Last Close$90.21 as of August 13, 2026$88.87 as of August 13, 2026
Distribution yield0.37%0.42%
Distribution Safety Score™ 9390
Expense ratio0.07%0.04%
AUM$33.7B$230B
Distribution frequencyQuarterlyQuarterly
Underlying indexCRSP US Mega Cap Growth IndexCRSP US Large Cap Growth Index
ObjectiveProvide exposure to the fund's underlying index or strategy per issuer materials.Track the CRSP US Large Cap Growth Index for diversified exposure to U.S. growth equities.
Asset classEquityEquity
Inception date12/17/200701/26/2004
Beta1.261.26
Last dividend$0.0840$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$4657B

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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Visual comparison

Key metrics

Projected income on $10K

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

Total returns

MGK has outpaced VUG over the trailing twelve months, posting a 17.73% total return against 16.87%. The lead holds up over 10 years too: MGK has compounded at 18.62% a year, against 17.72% 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
MGK9.99%17.73%24.76%13.99%18.62%13.85%20.3%0.871.26-23.4%
VUG9.91%16.87%24.16%13.06%17.72%13.22%19.8%0.871.25-22.8%

Total return with all distributions reinvested on the ex-dividend date, split-adjusted, as of August 12, 2026. YTD and 1Y are cumulative; longer windows are annualized. “Since Dec 2007” measures every fund from December 21, 2007 — the youngest fund's first trading day — 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.

Quick verdict

MGK (Vanguard Mega Cap Growth ETF) and VUG (Vanguard 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 0.04% compared to 0.07%.

They track different benchmarks: MGK is linked to CRSP US Mega Cap Growth Index while VUG tracks CRSP US Large Cap Growth Index, which means their performance drivers differ.

VUG is the larger fund by assets ($230B), which generally means tighter spreads and better 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 $70 in fees vs $40 for VUG (simplified, not compounded). The $30.00 difference may be offset by yield or performance.

MGK ER0.07%
VUG ER0.04%

Strategy & risk

MGK tracks CRSP US Mega Cap Growth Index with an index approach, while VUG tracks CRSP US Large Cap Growth Index with a growth approach.

MGK beta1.26
VUG beta1.26

Fund details

MGK is managed by Vanguard (launched 12/17/2007) with $33.7B in assets. VUG is managed by Vanguard (launched 01/26/2004) with $230B in assets.

MGK AUM$33.7B
VUG AUM$230B
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Frequently asked questions

What is the current distribution yield for MGK and VUG?

MGK currently distributes 0.37% and VUG 0.42%, based on fund data updated August 2026. Distribution yield 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 Growth ETF) tracks CRSP 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 93, 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 0.07% while VUG charges 0.04%. 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 17.73% total return against 16.87%. The lead holds up over 10 years too: MGK has compounded at 18.62% a year, against 17.72% 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 August 8, 2026.

Overview

MGK and VUG are both Vanguard ETFs tracking CRSP growth indexes, but they differ in scope and size. MGK targets mega-cap growth stocks (the largest 200 or so companies), while VUG casts a wider net across the full large-cap growth universe. VUG is substantially larger ($230B in AUM versus $33.7B), making it the more widely held option.

How they differ

The biggest structural difference is breadth: MGK's mega-cap-only mandate means heavier concentration in the largest names, while VUG includes the full spectrum of large-cap growth companies. VUG's broader index base naturally incorporates mid-tier large-caps that MGK excludes entirely. Both have identical betas of 1.26, so the risk profile per unit of market move is the same—but MGK's narrower holdings concentrate that risk.

On cost, VUG has a slight edge with a 0.04% expense ratio versus MGK's 0.07%, though both are cheap in absolute terms. Both distribute quarterly at very modest yields (0.41% and 0.37%, respectively), reflecting the low-dividend nature of growth stocks. MGK's smaller asset base ($33.7B) means tighter bid-ask spreads may be slightly wider than VUG's, though both are highly liquid.

Who each is best for

  • MGK: Fits investors seeking maximum concentration in the largest growth companies and willing to accept higher single-stock overlap risk for a tighter mega-cap-only lens.
  • VUG: Designed for investors who want broad large-cap growth exposure with the stability of a much larger fund and the benefit of exposure below the mega-cap tier.

Key risks to know

  • Concentration in largest names: MGK's mega-cap mandate means heavier weighting to a smaller set of companies (roughly the top 200), so a drawdown in the largest tech and growth names will hit harder than in VUG.
  • Style-box drift with market cycles: Both track growth indexes that can underperform in value-favoring markets; neither includes value or dividend stocks to cushion downturns.
  • Valuation sensitivity: Growth stocks typically carry higher price-to-earnings multiples than the broader market, making both funds more sensitive to interest-rate shocks and shifts in discount rates.
  • Overlap with mega-cap holdings: MGK's concentrated index means its top 10 or 20 positions likely overlap significantly with VUG's, so holding both adds little diversification if that's a concern.

Bottom line

If you want the purest mega-cap growth bet with maximum concentration in the largest names, MGK delivers that precisely—but you'll absorb more single-stock volatility. If you prefer broader large-cap coverage, lower fees, and a fund with $230B in AUM for tighter trading, VUG is the more conventional choice. Both are well-designed, low-cost index vehicles; the difference is whether you want all-mega-cap or the full large-cap growth spectrum. Past performance does not predict future results.

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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