Vanguard Mega Cap ETF

Vanguard Mega Cap ETF (MGC) tracks the CRSP US Mega Cap Index. It holds the biggest U.S. companies, which together make up the top 70% of the investable U.S. stock market's value; there were 172 of them as of August 31, 2026. Its expense ratio (the yearly fee) is 0.07%, below the 0.09% average for similar funds. It leans heavily on technology: Nvidia, Apple and Microsoft together were about a quarter of the fund.

• Over the year to Oct 27, 2026, MGC returned +13.5%, 2nd of 9 among similar funds.
• Its 5-year annualized return was +13.3% and its 10-year +16.3%.
• In the 2020 COVID crash it fell 33.1% and regained its old high 4.6 months after the low.
• Its worst full calendar year was 2008 (-36.0%); its best was 2013 (+32.1%).
• The deepest fall in its price history was 51.9% (Dec 27, 2007 to Mar 9, 2009), recovered by Feb 8, 2012.

As of Aug 31, 2026, the fund held 172 securities; the ten largest made up 45.45% of assets.

By sector

• Over the three months to Aug 31, 2026, investors withdrew a net $23.3M (creations minus redemptions, per the N-PORT report).
• Monthly total returns reported for that quarter: -1.52%, -0.27%, +3.13%.

MGC is the exchange-traded share class of Vanguard Mega Cap Index Fund. It is an index fund: rather than picking stocks, it tracks the CRSP US Mega Cap Index. That index covers the largest U.S. companies, which together make up the top 70% of the investable U.S. stock market's value. The index provider decides which companies qualify. Under normal conditions, at least 80% of the fund's net assets go into the index's stocks.

The index is float-adjusted and weighted by market value. Bigger companies get bigger weights, and only shares that are available to the public count. The fund tries to hold every stock in about the same proportion as the index. As of August 31, 2026, the 10 largest positions made up 45.45% of assets, and technology made up 41.4%. Turnover, the share of the portfolio replaced in a year, was 3% in the latest fiscal year.

Because the fund follows the index, it can become "nondiversified" or concentrated in one industry if the index does. In that case a few stocks could drive most of its results. Shares trade on NYSE Arca at market prices, which can differ slightly from the value of the fund's holdings. Only large firms called Authorized Participants can create or redeem shares directly with the fund. The fund also held small S&P 500 futures and swap positions, each well under 0.01% of assets.

• MGC charges 0.07% a year, versus an average of 0.09% for the similar funds below (4th of 9, cheapest first).
• Of that, 0.06% is the management fee; the rest covers other fund expenses.
• Using the prospectus's standard example, $10,000 invested would cost about $7 in the first year and $90 over 10 years (assuming a 5% annual return).

It offers low-cost, broad exposure to the largest U.S. companies, which could anchor the stock portion of a long-term portfolio.

MGC could anchor a portfolio's U.S. stock allocation at low cost. It charges 0.07% a year, or about $90 over 10 years on $10,000 in the SEC's standard example. It pays little income: the trailing 12-month yield was 0.91% as of October 27, 2026, paid quarterly.

The main risk is deep declines. The fund launched in December 2007, just before the financial crisis. It lost 36% in 2008, its worst calendar year. From its December 2007 high to March 2009, it fell 51.9% and took about 35 months to recover. It dropped 33.1% in the 2020 COVID crash and recovered in 4.6 months. The 2022 bear market cost 25.8% and took 14 months to recover. A retiree who has to cash out shares during a slump locks in losses. Past results don't predict the future, and a plan should look at the whole portfolio, not one fund.

Matched by holdings overlap from the latest N-PORT reports.