Vanguard Mega Cap Growth ETF

Vanguard Mega Cap Growth ETF (MGK) tracks the CRSP US Mega Cap Growth Index of the largest US growth stocks, with 56 holdings led by NVIDIA, Apple and Microsoft. It is a focused bet on the giants: as of June 30, 2026, the top 10 positions were about 64% of assets and technology 55.6%. Its annual fee, 0.07%, is below the 0.12% average for similar funds, though Vanguard Growth ETF (VUG) charges 0.04%.

• Over the year to Nov 2, 2026, MGK returned +2.5%, 6th of 9 among similar funds.
• Its 5-year annualized return was +11.6% and its 10-year +18.6%.
• In the 2020 COVID crash it fell 31.2% and regained its old high 2.5 months after the low.
• Its worst full calendar year was 2008 (-36.3%); its best was 2023 (+51.7%).
• The deepest fall in its price history was 48% (Dec 27, 2007 to Mar 9, 2009), recovered by Jan 12, 2011.

As of Jun 30, 2026, the fund held 56 securities; the ten largest made up 63.65% of assets.

By sector

• Over the three months to Jun 30, 2026, investors withdrew a net $36.3M (creations minus redemptions, per the N-PORT report).
• Monthly total returns reported for that quarter: +14.25%, +8.66%, -3.48%.

MGK is the exchange-traded share class of Vanguard Mega Cap Growth Index Fund. Instead of picking stocks, it tracks the CRSP US Mega Cap Growth Index. That index takes the biggest US companies, those making up the top 70% of the investable US stock market by value, and keeps the ones its provider classifies as growth stocks: firms that tend to reinvest earnings rather than pay big dividends.

Stocks are weighted by float-adjusted market value (share price times publicly tradable shares), so the biggest companies count most. As of June 30, 2026, NVIDIA was 13.3% of the fund, Apple 12.2% and Microsoft 7.5%. The fund holds all, or nearly all, index stocks in about the same proportions and trades when the index changes. Portfolio turnover, the share of holdings replaced in a year, was 14%, per the January 28, 2026 prospectus.

If market moves leave a few giants large enough, the fund may become "nondiversified" under the Investment Company Act of 1940. That means single companies can make up a bigger share of it than a diversified fund would allow. MGK trades on NYSE Arca at market prices, which can differ slightly from the value of its holdings. As of June 30, 2026, stocks were 99.8% of assets, with 0.55% in cash and a tiny futures and swap position.

• MGK charges 0.07% a year, versus an average of 0.12% 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).

With 56 holdings, more than half its assets in technology and a 48% drop at its worst, MGK is a concentrated growth bet rather than a broad foundation.

MGK can add concentrated exposure to the biggest US growth stocks, but its drops have been deep. It fell 48% from December 2007 to March 2009 and recovered in January 2011, about 22 months after the low. Its worst calendar year was 2008, down 36.3%. It lost 31.2% in the 2020 COVID crash, recovering in about 2.5 months, and 34.7% in the 2022 bear market, recovering about 14.5 months after the low. Withdrawing during such a slump means cashing out shares at low prices, leaving less to benefit from any rebound.

Income is small: the 12-month yield was 0.62% as of October 27, 2026, with dividends paid quarterly. Costs are low at 0.07% a year, or $90 over 10 years on $10,000 in the SEC's standard example. 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.