Vanguard Morningstar Mega Cap Growth ETF (MGK -0.40%) and Vanguard Morningstar Small-Cap Growth ETF (VBK -1.98%) offer low-cost access to growth-oriented stocks but target opposite ends of the market-capitalization spectrum.
Vanguard Morningstar Mega Cap Growth ETF focuses on the largest giants of the U.S. market, while Vanguard Morningstar Small-Cap Growth ETF targets smaller companies with high expansion potential. This comparison evaluates how these distinct market segments impact total returns, sector concentration, and historical price volatility for growth-oriented investors seeking broad market exposure.
Snapshot (cost & size)
| Metric | VBK | MGK |
|---|---|---|
| Issuer | Vanguard | Vanguard |
| Share price (as of 8/27/26) | $358.96 | $90.48 |
| Expense ratio | 0.05% | 0.05% |
| 1-yr return (as of 8/27/26)) | 23.4% | 17.5% |
| Dividend yield | 0.4% | 0.3% |
| Beta | 1.17 | 1.24 |
| AUM | $43.8 billion | $32.4 billion |
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.
Both funds are highly affordable with matching 0.05% expense ratios, sitting well below the industry average for growth-focused strategies. Investors could find the Vanguard Morningstar Small-Cap Growth ETF slightly more appealing for income potential, as it provides a higher payout with a 0.11 percentage point yield advantage over its mega-cap counterpart.
Performance & risk comparison
| Metric | VBK | MGK |
|---|---|---|
| Max drawdown (5 yr) | (38.4%) | (36.0%) |
| Growth of $1,000 over 5 years (total return) | $1,268 | $1,882 |
What’s inside
Vanguard Morningstar Mega Cap Growth ETF concentrates heavily on technology at 72%, followed by communication services at 17%, and consumer cyclical at 11%. Its concentrated portfolio of 56 holdings includes substantial positions in Nvidia at 13.55%, Apple at 13.22%, and Microsoft at 9.52%. It was launched in 2007. Vanguard Morningstar Mega Cap Growth ETF has paid $0.29 per share over the trailing 12 months, which on its recent ~$90.48 share price works out to a 0.3% yield.
Vanguard Morningstar Mega Cap Growth ETF
Today’s Change
(-0.40%) $-0.36
Current Price
$90.12
Key Data Points
AUM
$32B
Dividend Yield
1.26%
Expense Ratio
0.05%
Top Holdings
NVDA
13.55%
AAPL
13.22%
MSFT
9.52%
Vanguard Morningstar Small-Cap Growth ETF provides much broader diversification with 543 holdings across technology at 23%, industrials at 22.6%, and healthcare at 18.8%. Its largest positions include Revolution Medicines at 1.13%, Natera at 1.09%, and Credo Technology Group Holding at 1.02%. It was launched in 2004. Vanguard Morningstar Small-Cap Growth ETF has paid $1.53 per share over the trailing 12 months, which on its recent ~$358.96 share price works out to a 0.4% yield.
Vanguard Morningstar Small-Cap Growth ETF
Today’s Change
(-1.98%) $-7.12
Current Price
$351.84
Key Data Points
AUM
$44B
Dividend Yield
0.43%
Expense Ratio
0.05%
Top Holdings
RVMD
1.13%
NTRA
1.09%
CRDO
1.02%
For more guidance on ETF investing, check out the full guide at this link.
Which looks like the better buy
Choosing between the Vanguard Mega Cap Growth and Small-Cap Growth ETFs will likely come down to your investing goals and risk tolerance. MGK, with its more concentrated approach, gives you low-cost access to the market’s biggest growth stocks by market cap, which also explains its heavy tilt toward technology. Many would consider these stocks among the foundational holdings of a portfolio, offering a combination of growth potential and relative stability due to their larger size.
VBK offers a different approach — focusing on some of the smallest growth stocks by market cap. Small-cap stocks run the risk of volatility, but they may also provide greater total upside than their megacap peers, because they’re in the earlier stages of growth and development. Some could outright fail, others could be the next Nvidia, Apple, or Microsoft. This fund is also inexpensive to own, and its broader portfolio of 543 holdings smooths out the risk.
If you’re still building the foundation of your portfolio, it may make sense to open a position in MGK to gain exposure to today’s market leaders. But you may already hold many of these stocks, either individually or via another index fund, such as one that tracks the S&P 500 or Nasdaq-100. Double-check to make sure you understand your own portfolio’s overall concentration. If you’re looking for diversity with a little additional potential upside, you may want to consider opening or maintaining a position in VBK as well.
Sarah Sidlow has positions in Apple, Microsoft, and Nvidia. The Motley Fool has positions in and recommends Apple, Microsoft, Natera, Nvidia, and Vanguard Morningstar Small-Cap Growth ETF. The Motley Fool has a disclosure policy.