A Most Curious Contest: VOOG vs. MGK

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A Most Curious Contest: VOOG vs. MGK

Hark, gentle investors, and lend an ear! We find ourselves embroiled in a most diverting, yet potentially ruinous, spectacle. Two funds, both promising the gilded fruit of growth, yet differing in their approach as a dandy differs from a dustman. The Vanguard S&P 500 Growth ETF (VOOG +0.40%) and the Vanguard Mega Cap Growth ETF (MGK +0.59%)—a contest, I assure you, fraught with peril for the unwary.

Observe, if you will, that both seek to capture the vigor of American growth stocks. However, VOOG, with a prudence bordering on the pedestrian, casts its net wide across the growth component of the venerable S&P 500. MGK, on the other hand, is a creature of ambition, concentrating its energies upon the largest of these burgeoning enterprises. Let us, therefore, dissect their merits and demerits, lest we find ourselves impoverished by misplaced faith.

A Brief Accounting

Metric VOOG MGK
Issuer Vanguard Vanguard
Expense Ratio 0.07% 0.07%
1-yr Return (as of Jan. 24, 2026) 15.75% 14.60%
Dividend Yield 0.49% 0.35%
Beta (5Y monthly) 1.08 1.20
AUM $22 billion $32 billion

A most equitable beginning, you say? Indeed. Both demand a modest toll for their stewardship. Yet, observe a subtle difference: MGK yields a slightly smaller dividend. A trifle, perhaps, but even a miser delights in every farthing. Those seeking a modest income stream may find VOOG the more agreeable companion.

A Comparison of Fortunes and Risks

Metric VOOG MGK
Max Drawdown (5 y) -32.74% -36.02%
Growth of $1,000 over 5 years $1,880 $1,954

Ah, but the true drama lies in the fluctuations of fortune! Observe that MGK, while boasting a slightly superior five-year growth, has endured a deeper descent into the abyss during times of turmoil. A bolder, more volatile spirit, it seems. VOOG, by contrast, offers a more measured, predictable path – a virtue, I assure you, often underestimated in the pursuit of riches.

The Inner Workings

MGK, it appears, is a devotee of concentration, holding but sixty stocks – a select company of the largest and most ambitious enterprises. Technology dominates, comprising a full 55% of its holdings, followed by communication services and consumer whims. Its triumvirate – Nvidia, Apple, and Microsoft – collectively command more than a third of the fund’s assets. A most precarious dependence, wouldn’t you agree?

VOOG, in contrast, spreads its affections across a wider array of 140 growth-oriented stocks. While technology remains prominent (49%), its portfolio is more diversified. Its own triumvirate mirrors MGK’s, but with a slightly more equitable distribution of power. A prudent approach, I submit, for those who value stability over reckless abandon.

A Word to the Wise

Consider, if you will, the folly of placing all one’s eggs in a single basket. MGK, with its concentrated holdings, offers the potential for greater reward, but also carries a correspondingly greater risk. VOOG, with its broader diversification, offers a more measured, predictable path. The choice, therefore, depends upon your temperament and your tolerance for uncertainty.

Let us not forget, however, that both funds are subject to the vagaries of the market. No investment, however prudent, can guarantee success. The wise investor, therefore, must exercise caution, conduct thorough research, and above all, resist the temptation to chase fleeting fortunes. For, as the playwright wisely observed, “All that glitters is not gold.”

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2026-01-25 01:52