# MGK vs VUG: fees, holdings and returns compared

> MGK vs VUG: what each ETF holds, what it costs, and how both did over the same dates, with yearly returns and worst drops.

MGK holds about 50 of the very largest US growth companies. VUG holds about 135 large growth companies. Both come from Vanguard and Morningstar indexes, and the same giants lead both. Over the same dates since December 2007, MGK returned about 13.5% a year and VUG returned about 13.0% a year.

Written by [the Tactfolio research team](https://tactfolio.com/about/editorial-policy). Fund facts checked October 17, 2026. Prices through October 20, 2026.

## Key points

- VUG costs less: 0.03% a year against 0.05%.
- MGK started trading in December 2007. VUG started in January 2004.
- Worst drops since 2007: MGK −48.0%, VUG −49.5%.
- Daily correlation: 0.99 (1 means they always move together).

## What is the difference between MGK and VUG?

MGK stops at the very largest companies, so the few biggest tech names make up even more of it. VUG adds about 85 more large growth companies that are smaller than the giants. That makes VUG a little more spread out. Both charge low fees.

| Fact | MGK | VUG |
| --- | --- | --- |
| Full name | Vanguard Morningstar Mega Cap Growth ETF | Vanguard Morningstar Growth ETF |
| Issuer | Vanguard | Vanguard |
| Expense ratio | 0.05% a year | 0.03% a year |
| Started trading | December 17, 2007 | January 26, 2004 |
| Tracks | Morningstar US Mega Cap Growth Index | Morningstar US Large Cap Growth Index |
| Holdings | 52 holdings as of September 30, 2026 | 135 holdings as of September 30, 2026 |
| Type | US stocks, ETF | US stocks, ETF |

Fund facts checked on the [Vanguard MGK page](https://investor.vanguard.com/investment-products/etfs/profile/mgk) and the [Vanguard VUG page](https://investor.vanguard.com/investment-products/etfs/profile/vug).

## Is MGK or VUG cheaper?

VUG costs less: 0.03% a year against 0.05%. On $10,000, that is about $5 a year for MGK and $3 for VUG. The fund takes its fee out of its own value a little each day, so you never get a bill.

## MGK vs VUG performance over the same dates

Both funds are measured from December 2007 to October 2026, the dates both traded. MGK returned about 13.5% a year and VUG returned about 13.0% a year. MGK came out ahead over this period, which does not mean it will again.

| Measure | MGK | VUG |
| --- | --- | --- |
| $10,000 grew to | $108,833 | $99,283 |
| Total return | 988.3% | 892.8% |
| Return per year (CAGR) | 13.5% | 13.0% |
| Worst drop from a high | −48.0% | −49.5% |
| Volatility (how much it swings) | 21.1% | 21.2% |
| Last 12 months | 11.8% | 10.2% |
| Last 3 years, per year | 26.7% | 26.0% |
| Last 5 years, per year | 13.5% | 12.3% |
| Last 10 years, per year | 18.9% | 17.9% |

Prices through October 20, 2026. Figures use daily closing prices adjusted for splits, with dividends reinvested. They do not include taxes or the cost of buying and selling. Past results do not tell you what will happen next.

## MGK and VUG returns by year

| Year | MGK | VUG |
| --- | --- | --- |
| 2026 (part of the year) | 10.2% | 9.4% |
| 2025 | 20.7% | 19.4% |
| 2024 | 32.9% | 32.7% |
| 2023 | 51.7% | 46.8% |
| 2022 | −33.6% | −33.2% |
| 2021 | 28.6% | 27.4% |
| 2020 | 41.0% | 40.3% |
| 2019 | 37.4% | 37.0% |
| 2018 | −2.9% | −3.3% |
| 2017 | 29.5% | 27.7% |
| 2016 | 6.6% | 6.3% |
| 2015 | 3.6% | 3.2% |
| 2014 | 13.2% | 13.6% |
| 2013 | 32.6% | 32.5% |
| 2012 | 17.2% | 17.0% |
| 2011 | 3.1% | 1.8% |
| 2010 | 14.5% | 17.2% |
| 2009 | 35.0% | 36.1% |
| 2008 | −36.3% | −38.0% |
| 2007 (part of the year) | −1.1% | −0.8% |

## Which fell further in bad times?

A drawdown is how far a fund falls from its last high point. MGK's worst fall was −48.0%, from December 27, 2007 to March 9, 2009. It got back to that high on January 14, 2011.

VUG's worst fall was −49.5%, from December 28, 2007 to March 9, 2009. It got back to that high on January 12, 2011.

Their daily moves had a correlation of 0.99. A correlation of 1 means two funds always move up and down together. Near 0 means they move on their own. So holding both adds little variety.

## Why people choose MGK or VUG

**MGK.** People who want only the very largest growth companies tend to pick MGK.

**VUG.** People who want a wider set of large growth companies tend to pick VUG.

## Strategies that hold MGK or VUG

These classic strategies hold one or both at least some of the time. Each is a set of written rules you can open, test and copy.

- [Papa Bear Portfolio (Muscular Portfolios)](https://tactfolio.com/strategies/papa-bear-portfolio.md), by Brian Livingston, 2018 (holds VUG)

## Other funds like MGK and VUG

Each fund has more funds that hold the same kind of investments, ranked by how closely they move with it: [MGK alternatives](https://tactfolio.com/alternatives/MGK.md) and [VUG alternatives](https://tactfolio.com/alternatives/VUG.md).

## Test a mix of MGK and VUG

Open the [builder](https://tactfolio.com/builder), add MGK and VUG, and give each a weight, such as 50% and 50%. The backtest shows how the mix would have done, with its worst drop, on daily prices. You can also add a rule, for example to switch between them, and compare. Read the full pages for [MGK](https://tactfolio.com/etf/MGK.md) and [VUG](https://tactfolio.com/etf/VUG.md), or see [more ETF comparisons](https://tactfolio.com/etf-comparisons.md).

## The details

Both funds use Tactfolio's stored daily prices, adjusted for splits, with dividends reinvested. They are compared only on days both traded, starting the later fund's first day, so neither gets a head start. Correlation uses daily returns over the same days. Read [what a backtest simulates](https://tactfolio.com/docs/backtests.md) for more on these measures.

## Research and test it

- [S&P 500 index](https://tactfolio.com/learn/sp500-index): The S&P 500 tracks about 500 large US companies. Learn how stocks get in, how the index is weighted, how to invest in it, and how far it has fallen before.
- [What is an ETF](https://tactfolio.com/learn/what-is-an-etf): An ETF is a fund that trades like a stock. Learn how ETFs work, what they cost, the main types, and the risks, with SEC sources.
- [ETF screener](https://tactfolio.com/screener.md): A free ETF screener for 162 US-listed funds. Filter by type, issuer and fee, sort by returns or worst drop, and compare funds side by side.
- [ETF expense ratio](https://tactfolio.com/learn/etf-expense-ratio): What an ETF expense ratio is, how the fund charges it, and how 0.03% vs 1% adds up over 10 and 30 years, with real fund examples.
- [Backtest a portfolio](https://tactfolio.com/trading-tools/backtest-portfolio): Backtest a portfolio of US stocks and ETFs. Enter tickers and shares, pick when to rebalance, and get the results with a link to share.
- [Backtesting](https://tactfolio.com/backtesting): Free backtesting software for stocks, ETFs, and crypto perps.

## Common questions

### Is MGK more concentrated than VUG?

Yes. MGK holds about 50 companies and VUG about 135, so MGK's top few make up a larger share.

### What does mega cap mean?

Mega cap means the very largest companies by total market value, the giants at the top of the stock market.

### Which is cheaper, MGK or VUG?

VUG costs less: 0.03% a year against 0.05%. Fees come from each issuer and were checked on October 17, 2026.

### Which did better, MGK or VUG?

From December 2007 to October 2026, MGK returned about 13.5% a year and VUG returned about 13.0% a year, with dividends reinvested. Their worst drops were −48.0% and −49.5%. Past returns do not tell you what comes next.

## Sources

- [Vanguard: Vanguard Morningstar Mega Cap Growth ETF fund page](https://investor.vanguard.com/investment-products/etfs/profile/mgk)
- [Vanguard: Vanguard Morningstar Growth ETF fund page](https://investor.vanguard.com/investment-products/etfs/profile/vug)

> Not financial advice. Tactfolio is a research and automation tool. It is not a broker or a financial adviser. This page is for education only. Backtests are hypothetical. They show how rules would have done on past prices, not how they will do. All investing involves risk, including losing the money you put in.