Choosing between Vanguard S&P 500 Growth ETF (NYSEMKT:VOOG) and Vanguard Mega Cap Growth ETF (NYSEMKT:MGK) involves weighing a slightly lower cost against a broader portfolio of S&P 500 growth stocks.
Both Vanguard funds provide low-cost exposure to the U.S. growth market but differ in their underlying index methodology. While MGK targets only the largest market-capitalization names, VOOG casts a wider net across the entire S&P 500, offering a different balance of concentration and diversity.
Beta measures price volatility relative to the S&P 500; beta is calculated from monthly returns over the available fund history (up to five years). The 1-yr return represents total return over the trailing 12 months. Dividend yield is the trailing-12-month distribution yield as of the close of July 16.
MGK is slightly more affordable with a 0.05% expense ratio, while VOOG charges 0.07%. Investors seeking higher income could find more value in the Vanguard S&P 500 Growth ETF, which provides a higher trailing-12-month payout.
The Vanguard S&P 500 Growth ETF (VOOG) portfolio contains 148 holdings, primarily in Technology 52%, Communication Services 16%, and Consumer Cyclical 9%. Its largest positions include Nvidia Corp (NASDAQ:NVDA) at 13.6%, Microsoft Corp (NASDAQ:MSFT) at 7.8%, and Apple Inc (NASDAQ:AAPL) at 6%. It launched in 2010. Vanguard S&P 500 Growth ETF has paid $0.37 per share over the trailing 12 months, which on its recent ~$81.91 share price works out to a 0.50% yield.
The Vanguard Mega Cap Growth ETF (MGK) portfolio is more concentrated with 56 holdings, led by Technology 59%, Communication Services 17%, and Consumer Cyclical 11%. Its largest positions include Nvidia at 13.24%, Apple at 12%, and Microsoft Corp at 8%. It launched in 2007. Vanguard Mega Cap Growth ETF has paid $0.29 per share over the trailing 12 months, which, on its recent ~$88.18 share price, works out to a 0.30% yield.
These two Vanguard funds are a choice between going big or going bigger.
Both have rock-bottom expenses, both are more than 90% invested in large-cap stocks, and both are around 40% focused on large-cap growth stocks.
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