The Vanguard Mega Cap Growth ETF (MGK) was launched on 12/17/2007, and is a passively managed exchange traded fund designed to offer broad exposure to the Large Cap Growth segment of the US equity market.

The fund is sponsored by Vanguard. It has amassed assets over $27.26 billion, making it one of the largest ETFs attempting to match the Large Cap Growth segment of the US equity market.

Companies that fall in the large cap category tend to have a market capitalization above $10 billion. Overall, they are usually a stable option, with less risk and more sure-fire cash flows than mid and small cap companies.

Qualities of growth stocks include faster growth rates compared to the broader market, as well as higher valuations and higher than average sales and earnings growth rates. Something to keep in mind is the higher level of volatility that is affiliated with growth stocks. Compared to value stocks, growth stocks are a safer bet in a strong bull market, but don’t perform as strongly in almost all other financial environments.

When considering an ETF’s total return, expense ratios are an important factor, and cheaper funds can significantly outperform their more expensive counterparts in the long term if all other factors remain equal.

Annual operating expenses for this ETF are 0.07%, making it one of the least expensive products in the space.

It has a 12-month trailing dividend yield of 0.43%.

Even though ETFs offer diversified exposure which minimizes single stock risk, it is still important to look into a fund’s holdings before investing. Luckily, most ETFs are very transparent products that disclose their holdings on a daily basis.

This ETF has heaviest allocation to the Information Technology sector–about 55.60% of the portfolio. Consumer Discretionary and Telecom round out the top three.

Looking at individual holdings, Microsoft Corp (MSFT) accounts for about 13.08% of total assets, followed by Nvidia Corp (NVDA) and Apple Inc (AAPL).

The top 10 holdings account for about 61.87% of total assets under management.

MGK seeks to match the performance of the CRSP U.S. Mega Cap Growth Index before fees and expenses. The CRSP US Mega Cap Growth Index is a float-adjusted, market-capitalization-weighted index designed to measure equity market performance of mega-capitalization growth stocks in the United States.

The ETF has added about 6.84% so far this year and it’s up approximately 17.04% in the last one year (as of 07/01/2025). In the past 52-week period, it has traded between $273.67 and $366.17.