Wealthy PotMGK vs VUG: 86% the Same Fund, With MGK Cutting Off the Smaller Growth Stocks
MGK and VUG are both Vanguard growth ETFs built on the same index family, and MGK is essentially VUG with its smaller holdings removed. In the two funds' 30 June 2026 SEC filings, every one of MGK's 55 holdings was also a VUG holding, and the overlap was 85.8%. What VUG adds is 89 more companies worth 13.3% of the fund: Costco, GE, McDonald's, Texas Instruments and a long list of smaller growth names. MGK charges 0.05% and VUG 0.03%. Over the ten years to 30 September 2026, MGK returned 19.00% a year and VUG 17.94%, because the very largest companies led. For most people the two are close substitutes, and the fee and the size of the fund favour VUG.
Table of Contents
The Short Answer
- Overlap: 85.8%. All 55 MGK holdings were in VUG, and they made up 86.6% of VUG's weight. Our calculation from both funds' 30 June 2026 SEC filings.
- Fees: MGK 0.05%, VUG 0.03%. MGK's fee fell from 0.07% on 2 February 2026. On $10,000 that is $5 against $3 a year, or $64 against $39 over ten years in the prospectus examples.
- Holdings: 56 vs 147 stocks at 31 August 2026.
- Top ten: 66.8% vs 63.1%. The same ten companies lead both funds in nearly the same order.
- Ten-year return to 30 September 2026: MGK 19.00%, VUG 17.94% a year at NAV. MGK was also ahead over one, three and five years.
- That gap came from the indexes. Over the ten years to 2025, MGK's index beat VUG's by 0.93 points a year and MGK beat VUG by 0.90.
- Do not hold both. The second fund adds 13% of new companies at most, and doubles your weight in the same giants.
How Much of VUG Is Already MGK
Both funds file their complete portfolios with the SEC, and for this pair the filings cover the same date, 30 June 2026. We matched them security by security, using the same data behind our Portfolio Overlap Checker.
| Portfolios at 30 June 2026 | MGK | VUG |
|---|---|---|
| Stock holdings in the filing | 55 | 144 |
| Held by both funds | 55 | 55 |
| Share of the fund in those shared holdings | 99.8% | 86.6% |
| Holdings the other fund did not own | 0 | 89 (13.3% of VUG) |
| Overlap, sum of the smaller weight in each shared stock | 85.8% | |
So MGK is not a different growth portfolio. It is the top of VUG. The shared names even carry similar weights: NVIDIA was 13.27% of MGK and 12.63% of VUG, Apple 12.17% against 11.67%, Alphabet 10.58% against 10.29%, Microsoft 7.50% against 7.61%.
What the extra 89 VUG holdings are. The largest VUG positions MGK did not hold were Costco (1.15% of VUG), General Electric (0.55%), McDonald's (0.54%), Texas Instruments (0.39%), Vertiv (0.37%), Starbucks (0.34%), Quanta Services (0.31%), Howmet Aerospace (0.31%), Datadog (0.26%), Bloom Energy (0.24%), Robinhood (0.23%) and Cloudflare (0.23%). They are large companies by any normal standard, just not large enough to clear the mega-cap line on ranking day. Together they are 13.3% of VUG, which is the whole practical difference between the funds.
MGK vs VUG Side by Side
| MGK | VUG | |
|---|---|---|
| Full name | Vanguard Morningstar Mega Cap Growth ETF | Vanguard Morningstar Growth ETF |
| Index | Morningstar US Mega Cap Growth Index (CRSP US Mega Cap Growth Index until 29 July 2026) | Morningstar US Large Cap Growth Index (CRSP US Large Cap Growth Index until 29 July 2026) |
| Expense ratio | 0.05% (0.07% before 2 Feb 2026) | 0.03% |
| Prospectus cost on $10,000 over 10 years | $64 | $39 |
| Number of stocks (31 Aug 2026) | 56 | 147 |
| Top-10 weight (30 Jun 2026) | 66.8% | 63.1% |
| Technology weight, ICB (30 Jun 2026) | 72.7% | 69.2% |
| Median market cap (30 Jun 2026) | $1,797.3 billion | $1,797.3 billion |
| 3-year standard deviation (30 Jun 2026) | 17.72% | 17.42% |
| ETF share class assets (31 Aug 2026) | $33.5 billion | $227.0 billion |
| 30-day SEC yield (30 Sep 2026) | 0.30% | 0.35% |
| Portfolio turnover, latest fiscal year | 14% (year to 30 Sep 2025) | 12% (2025) |
| Mutual fund version | Institutional Shares only, $5 million minimum | Admiral Shares (VIGAX), 0.05%, $3,000 minimum |
| Replication | Full replication | Full replication |
| Inception | 17 Dec 2007 | 26 Jan 2004 |
The median market cap is the same number in both funds. That is not a typo. Both fact sheets print $1,797.3 billion for 30 June 2026, and Vanguard's data for 31 August 2026 shows $2.8 trillion for both. In funds weighted by market value and dominated by the same giants, the extra 89 small positions in VUG are not enough to move that figure.
The fee gap is two basis points. On $100,000 that is $20 a year. MGK's fee came down to 0.05% from 0.07% in February 2026, and VUG's came down to 0.03% from 0.04% in Vanguard's April 2026 prospectus, so older comparisons quoting 0.07% against 0.04% are out of date.
About the names. Morningstar acquired CRSP, and on 29 July 2026 Vanguard renamed both funds and both target indexes. MGK's supplement says its "investment objective, strategies, and polices remain unchanged." The tickers did not change.
Mega Cap vs Large Cap: Where the Line Falls
MGK's prospectus defines its index as growth companies "in the top 70% of investable U.S. equity market capitalization," and adds that "mega-capitalization stocks are a subset of large-capitalization stocks." VUG's index is "made up of the growth stocks of large U.S. companies." Both apply the same index provider's growth classification. The only design difference is where the size cut-off falls, and MGK's is tighter.
Because both funds weight by market value, cutting off the smaller companies does not remove much money, it concentrates what is left. MGK's top ten were 66.8% of the fund against VUG's 63.1%, and its top 25 were 85.2% against 78.1% in the 30 June filings. MGK leans a little further into technology, 72.7% against 69.2% on Vanguard's classification, and its three-year standard deviation was a little higher, 17.72% against 17.42%.
The prospectuses show near-identical extremes. MGK's best quarter was a 28.80% gain and its worst a 22.54% loss; VUG's were 29.04% and 22.42%. Both came in the same quarters, mid-2020 and mid-2022. In practice these funds have moved together.
What Cutting the Tail Has Returned
| Annualized NAV return, to 30 Sep 2026 | 1 year | 3 years | 5 years | 10 years |
|---|---|---|---|---|
| MGK | 15.51% | 27.41% | 15.11% | 19.00% |
| MGK's benchmark (spliced) | 15.54 | 27.48 | 15.18 | 19.07 |
| VUG | 13.09% | 26.30% | 13.87% | 17.94% |
| VUG's benchmark (spliced) | 13.11 | 26.34 | 13.90 | 17.97 |
| MGK minus VUG | +2.42 | +1.11 | +1.24 | +1.06 |
MGK has been ahead on every horizon. That is what you would expect when the very largest companies outrun the merely large ones, and that is what happened over this decade. It is a statement about the market, not about the funds: both tracked their own benchmarks closely, MGK within 0.07 points a year over ten years and VUG within 0.03.
The prospectuses confirm it on an older, matched date. For the ten years to 31 December 2025, MGK's index beat VUG's by 0.93 points a year and MGK beat VUG by 0.90. Taxes were a wash: MGK lost 0.23 points a year to taxes on distributions and VUG 0.25.
| Average annual total return to 31 Dec 2025 | 1 year | 5 years | 10 years |
|---|---|---|---|
| MGK, before taxes | 20.71% | 15.74% | 18.35% |
| MGK, after taxes on distributions | 20.60 | 15.60 | 18.12 |
| VUG, before taxes | 19.44% | 14.63% | 17.45% |
| VUG, after taxes on distributions | 19.31 | 14.48 | 17.20 |
| CRSP US Mega Cap Growth Index | 20.80 | 15.82 | 18.42 |
| CRSP US Large Cap Growth Index | 19.48 | 14.67 | 17.49 |
| Hypothetical $10,000 held for 10 years | Ending value |
|---|---|
| At VUG's 10-year NAV return to 30 Sep 2026 (17.94%) | $52,073 |
| At MGK's 10-year NAV return to 30 Sep 2026 (19.00%) | $56,947 |
Before you read that as a reason to pick MGK, remember what produced it. MGK won because its 55 companies beat VUG's extra 89. If mid-sized growth companies lead the next decade, the same arithmetic runs the other way, and MGK will also be paying two basis points more a year while it happens.
This is educational information, not personalized investment advice. Past performance does not guarantee future results, and all investing carries the risk of loss.
Which One Fits You
Starting fresh with one growth fund? VUG. It costs 0.03% against 0.05%, it holds 86.6% of its money in MGK's stocks anyway, it is nearly seven times larger by ETF assets, and it has a low-minimum Admiral mutual fund twin, VIGAX, if you prefer mutual funds.
Choose MGK if you specifically want only the very largest growth companies and accept slightly higher concentration for it. That is a coherent choice; the decade to 2026 rewarded it. Just make it on purpose, not because the trailing return table is higher.
Do not hold both. Holding MGK and VUG together adds at most the 13% of VUG that MGK lacks and doubles your weight in NVIDIA, Apple, Alphabet and Microsoft. Pick one.
Already own one in a taxable account? Stay. A two-basis-point fee gap will take a very long time to repay a capital gains bill, and the two funds' after-tax efficiency is nearly identical. Inside an IRA or 401(k) a switch costs only the trading spread. If you want to change, redirect new contributions; check your 2026 tax bracket before selling anything.
Mutual fund only, for example in a 401(k)? MGK's only mutual fund class is Institutional Shares with a $5 million minimum, so most people cannot reach it outside the ETF. VUG's Admiral Shares charge 0.05% with a $3,000 minimum when bought directly from Vanguard.
Comparing other growth funds? VUG against Schwab's version is SCHG vs VUG, against the S&P 500 Growth index is VOOG vs VUG, and against the Nasdaq-100 is VUG vs QQQ. Whether you need a growth fund at all next to a total-market core is VTI vs VUG.
Sources & Methodology
- Vanguard World Fund, Form 485BPOS filed 28 January 2026: MGK's index description, replication, turnover, Institutional Shares minimum, best and worst quarters, and returns to 31 December 2025.
- MGK supplement effective 2 February 2026: the fee table restated to 0.05% and the $64 ten-year cost example.
- MGK renaming supplement, 29 July 2026 and Vanguard Index Funds renaming supplement, 29 July 2026: the CRSP to Morningstar name changes.
- Vanguard Index Funds, Form 485BPOS filed 28 April 2026: VUG's ETF and Admiral fee tables, minimums, index description, turnover, quarters and returns to 31 December 2025.
- MGK fact sheet, 30 June 2026 and VUG fact sheet, 30 June 2026: top ten, sectors, median market cap, standard deviation and assets.
- Vanguard MGK page and Vanguard VUG page: current names and fees, stock counts and assets at 31 August 2026, SEC yields and returns to 30 September 2026.
- MGK Form N-PORT, 30 June 2026 and VUG Form N-PORT, 30 June 2026: the holdings behind the overlap figures.
How the overlap was computed. For each stock both funds hold we took the smaller of its two weights and added them up, the method the Portfolio Overlap Checker uses on the same N-PORT data. Both filings are dated 30 June 2026.
What we did not verify. We did not open Morningstar's own index rulebook for this page, so the size definitions come from Vanguard's prospectuses and fact sheets. Neither Vanguard nor Morningstar publishes a return attribution, so the statement that MGK's lead came from its largest holdings is an inference from the index-level returns, not a measured attribution.
This article is for general education and is not investment, tax or legal advice. Past performance does not guarantee future results, index returns cannot be invested in directly, and all investing carries the risk of loss. Figures were checked against the sources above on 5 October 2026; confirm current data with Vanguard before acting.
FAQ: MGK vs VUG
Is MGK or VUG better?
For a single growth holding, VUG on cost: 0.03% against 0.05%, with 86.6% of its money already in MGK's stocks. MGK returned more over the ten years to 30 September 2026, 19.00% against 17.94% a year, because the largest companies led. That edge came from the index, not from anything Vanguard did differently.
How much do MGK and VUG overlap?
85.8% by weight in both funds' 30 June 2026 SEC filings. All 55 MGK holdings were also in VUG, and they made up 86.6% of VUG.
Should I own both MGK and VUG?
No. Together they add at most 13% of new companies and double your weight in the same mega-caps. Pick one.
What is the difference between MGK and VUG?
Size. MGK's index covers growth companies in the top 70% of investable US market value; VUG's covers growth companies across the large-cap universe. MGK held 56 stocks and VUG 147 at 31 August 2026.
What is MGK's expense ratio now?
0.05%, effective 2 February 2026, down from 0.07%. VUG's is 0.03%.
Did MGK change its name?
Yes. On 29 July 2026 it became the Vanguard Morningstar Mega Cap Growth ETF, and its index the Morningstar US Mega Cap Growth Index, after Morningstar acquired CRSP. Vanguard says the objective and strategy are unchanged; the ticker is still MGK.
Is MGK riskier than VUG?
Slightly more concentrated: 66.8% in its top ten against 63.1%, and a three-year standard deviation of 17.72% against 17.42% at 30 June 2026. Their best and worst quarters in the prospectuses were within a fraction of a point of each other.
Cite This Page
Journalists, educators and bloggers are welcome to cite this comparison. Please link back so readers can reach the underlying filings.
"MGK vs VUG: 86% the Same Fund, With MGK Cutting Off the Smaller Growth Stocks." Wealthy Pot, 2026. https://wealthypot.com/mgk-vs-vug/
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