Better Vanguard ETF Buy: MGK vs. VOOG

• MGK holds fewer, much concentrated mega-cap maturation stocks and has a somewhat deeper five-year drawdown than VOOG.

• Both ETFs complaint the aforesaid debased disbursal ratio, but MGK has a marginally little dividend yield.

• VOOG offers broader assemblage vulnerability with much holdings, portion MGK is much heavy tilted toward technology.

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

The Vanguard S&P 500 Growth ETF (NYSEMKT:VOOG) and the Vanguard Mega Cap Growth ETF (NYSEMKT:MGK) some people U.S. maturation stocks, but they instrumentality chiseled approaches.

While VOOG tracks the maturation portion of the S&P 500, offering wide vulnerability to large-cap growth, MGK zeroes successful connected the largest maturation companies utilizing a much concentrated mega-cap focus. Here’s however the 2 stack up connected performance, risk, 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 ETFs travel with the aforesaid debased disbursal ratio, but MGK pays a somewhat little dividend yield. While there’s nary quality for investors focused connected fees, those seeking adjacent a humble income tilt whitethorn find VOOG marginally much attractive.

MGK is built for investors seeking focused vulnerability to U.S. mega-cap maturation stocks, tracking the largest companies with a portfolio of conscionable 60 stocks.

Technology dominates, making up 55% of the fund, followed by connection services and user cyclical. Its apical holdings — Nvidia, Apple, and Microsoft — collectively marque up much than 35% of the fund.

By contrast, VOOG spreads its bets crossed 140 growth-oriented stocks, with exertion making up 49% of full assets. Its secondary sectors see connection services and user cyclical.

Its apical 3 positions lucifer MGK’s but are somewhat little concentrated, making up astir 32% of the portfolio. This broader assemblage and banal vulnerability whitethorn entreaty to those seeking somewhat much diversification wrong the U.S. maturation universe.

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VOOG and MGK some absorption connected maturation stocks, but they connection disagree approaches to this conception of the market.

VOOG lone includes stocks from companies included successful the S&P 500. That tin adhd an constituent of stableness to this investment, arsenic this scale is made up of the largest and strongest U.S. companies. With much than treble the fig of holdings of MGK, it besides boasts greater diversification.