VONG vs. MGK: Is Diversified Growth or Mega-Cap Concentration Better for Investors?

• Both funds stock identical disbursal ratios, but VONG offers a somewhat higher dividend output and holds much stocks.

• MGK has delivered a higher 1-year full instrumentality and larger exertion assemblage tilt, portion VONG spreads its bets crossed astir 400 holdings.

• Risk metrics favour VONG, which showed a milder maximum drawdown and little beta implicit the past 5 years.

• These 10 stocks could mint the adjacent question of millionaires ›

The Vanguard Mega Cap Growth ETF (NYSEMKT:MGK) and Vanguard Russell 1000 Growth ETF (NASDAQ:VONG) are some low-cost, passively managed funds from Vanguard focused connected U.S. large-cap maturation stocks.

MGK focuses connected the largest mega-cap names, portion VONG tracks a broader scale that encompasses a wider scope of large-cap maturation companies. Here’s however the 2 stack up for investors weighing the trade-offs betwixt attraction and diversification.

Beta measures terms volatility comparative to the S&P 500. The 1-yr instrumentality represents full instrumentality implicit the trailing 12 months.

Both funds are arsenic affordable, charging a 0.07% yearly disbursal ratio. VONG edges up connected dividend yield, however, which whitethorn entreaty to those seeking a marginally higher income watercourse from maturation stocks.

VONG tracks the Russell 1000 Growth Index, holding 391 stocks and providing vulnerability to a wide portion of the U.S. maturation market. Technology leads astatine 55% of full assets, with user cyclical and connection services making up important portions.

Its apical positions are Nvidia, Apple, and Microsoft, and the fund’s 15-year way grounds signals stableness and maturity. VONG’s broader roster means little attraction hazard successful azygous names.

MGK, by contrast, is adjacent much tech-heavy, with the assemblage making up 58% of full assets. It besides holds conscionable 66 names, making it much concentrated successful the largest companies. Its apical 3 holdings lucifer VONG’s, but with higher idiosyncratic weights.

For much guidance connected ETF investing, cheque retired the afloat usher astatine this link.

VONG and MGK some ore heavy connected tech stocks with imaginable for above-average returns, making them astute investments for those seeking tech vulnerability wrong a maturation ETF.

However, the 2 funds disagree chiefly successful diversification. VONG holds astir 400 stocks, compared to conscionable 66 for MGK. That unsocial is simply a important quality betwixt the two, but MGK's heavier tilt toward tech makes it adjacent little diversified than VONG.