1 hour ago
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Robert Izquierdo, The Motley Fool
Thu, January 1, 2026 astatine 10:03 AM CST 5 min read
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MGK carries a overmuch little disbursal ratio and holds acold less stocks than IWO.
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MGK delivered a overmuch stronger five-year instrumentality and shallower drawdown, but its portfolio is heavy tilted toward exertion giants.
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IWO’s small-cap absorption brings higher volatility and broader assemblage vulnerability compared to MGK’s concentrated mega-cap lineup.
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The iShares Russell 2000 Growth ETF (NYSEMKT:IWO) and Vanguard Mega Cap Growth ETF (NYSEMKT:MGK) disagree sharply connected cost, portfolio concentration, and assemblage tilt, with MGK offering a much affordable way to mega-cap tech exposure, and IWO targeting small-cap maturation crossed a wider acceptable of industries.
Both funds purpose to seizure U.S. maturation stocks, but IWO zeroes successful connected small-cap companies, portion MGK targets the largest maturation names successful the market. This match-up pits diversification and volatility against attraction and efficiency, making the prime highly babelike connected what benignant of maturation vulnerability whitethorn entreaty to an investor’s strategy.
| Issuer | IShares | Vanguard |
| Expense ratio | 0.24% | 0.07% |
| 1-yr instrumentality (as of 2025-12-18) | 12.2% | 18.0% |
| Dividend yield | 0.65% | 0.37% |
| Beta | 1.40 | 1.20 |
| AUM | $13.23 billion | $32.68 billion |
Beta measures terms volatility comparative to the S&P 500; beta is calculated from five-year play returns. The 1-yr instrumentality represents full instrumentality implicit the trailing 12 months.
MGK is much affordable than IWO connected fees, with an disbursal ratio that is 0.17 percent points lower. IWO besides pays a somewhat higher dividend yield, but some ETFs connection precise humble payouts.
| Max drawdown (5 y) | -42.02% | -36.01% |
| Growth of $1,000 implicit 5 years | $1,128 | $2,019 |
MGK focuses tightly connected conscionable 69 mega-cap stocks, with a striking 71% allocation to exertion and its apical 3 holdings — Apple (NASDAQ:AAPL), NVIDIA (NASDAQ:NVDA), and Microsoft (NASDAQ:MSFT) — collectively making up implicit a 3rd of the fund. This concentrated attack has delivered robust humanities returns, but the portfolio is dominated by the precise largest U.S. maturation companies. The money has an 18-year way grounds and nary antithetic structural quirks.
IWO, by contrast, spreads its bets crossed much than 1,000 small-cap maturation stocks, with assemblage weights of 25% technology, 22% healthcare, and 21% industrials. Its apical holdings — Credo Technology Group Holding (NASDAQ:CRDO), Bloom Energy Class A (NYSE:BE), and Fabrinet (NYSE:FN) — each relationship for conscionable implicit 1% of assets, reflecting a acold little concentrated approach. This broader vulnerability brings higher volatility but whitethorn entreaty to those seeking diversification beyond mega-cap tech.
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