Vanguard Mega Cap Growth ETF (MGK): Complete Beginner's Guide
Last updated: March 2026 • Vanguard • Mega-Cap Growth
Expense Ratio
0.07%
AUM
$18.0B
Dividend Yield
0.50%
Inception
2007
Beginner Score
8/10
What is Vanguard Mega Cap Growth ETF?
MGK focuses on the largest and fastest-growing U.S. companies, concentrating on mega-cap stocks with strong revenue and earnings growth. These are the dominant tech and consumer companies that have driven most of the market's gains in recent years. The fund is a cost-effective way to bet on America's biggest growth engines continuing to outperform.
MGK is managed by Vanguard and has been available since 2007. With $18.0B in assets under management, it's a well-established fund with strong institutional backing. The fund charges an expense ratio of 0.07%, which means for every $10,000 you invest, you pay approximately $7 per year in management fees.
MGK at a Glance — Key Metrics
| Expense Ratio | 0.07% |
| Total Holdings | 73 |
| P/E Ratio | 35.0 |
| Beta | 1.15 |
| Dividend Yield | 0.50% |
| AUM | $18.0B |
| Inception Year | 2007 |
| Issuer | Vanguard |
Top 10 Holdings in MGK
MGK holds 73 different securities. Here are the largest positions that make up the core of this fund:
| # | Company | Ticker | Weight |
|---|---|---|---|
| 1 | Apple Inc. | AAPL | 14.00% |
| 2 | Microsoft Corp. | MSFT | 13.00% |
| 3 | NVIDIA Corp. | NVDA | 11.00% |
| 4 | Amazon.com Inc. | AMZN | 7.00% |
| 5 | Meta Platforms Inc. | META | 5.00% |
| 6 | Alphabet Inc. Class A | GOOGL | 4.00% |
| 7 | Alphabet Inc. Class C | GOOG | 3.80% |
| 8 | Eli Lilly & Co. | LLY | 3.00% |
| 9 | Tesla Inc. | TSLA | 2.80% |
| 10 | Visa Inc. | V | 2.50% |
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MGK Performance History
Here's how MGK has performed over different time periods. Remember that past performance doesn't guarantee future results, but it gives you a sense of the fund's track record:
YTD
5.00%
1 Year
30.00%
3 Year
12.00%
5 Year
19.00%
10 Year
17.00%
Beginner Suitability Score: 8/10
Our proprietary Beginner Suitability Score evaluates ETFs based on five factors that matter most to new investors: fees, volatility, diversification, dividend history, and track record length.
MGK scores 8/10 because it has very low fees, can be more volatile than the broader market, focuses on 73 selected holdings, and has been available since 2007, giving it a proven track record.
How to Buy MGK — Step by Step
- Open a brokerage account — We recommend Fidelity, Charles Schwab, or Vanguard for ETF investing. All offer $0 commissions on ETF trades.
- Fund your account — Transfer money from your bank. You can start with as little as $1 if your broker offers fractional shares.
- Search for "MGK" — Use the search bar in your brokerage platform to find Vanguard Mega Cap Growth ETF.
- Place your order — Choose "Market Order" for simplicity or "Limit Order" if you want to set a specific price. Enter how many shares (or dollar amount) you want to buy.
- Set up automatic investing — Most brokers let you schedule recurring purchases (e.g., $100/month on the 1st). This is dollar cost averaging in action.
Dollar Cost Averaging Into MGK
Here's what consistent monthly investing could look like over time, assuming an average annual return of 8% (approximate historical stock market average):
| Monthly | 10 Years | 20 Years | 30 Years |
|---|---|---|---|
| $100/mo | $18,417 | $59,295 | $150,030 |
| $250/mo | $46,041 | $148,237 | $375,074 |
| $500/mo | $92,083 | $296,474 | $750,148 |
*Projections assume 8% average annual return with monthly compounding. Actual returns will vary. Past performance doesn't guarantee future results.
Fee impact: With MGK's expense ratio of 0.07%, a $10,000 investment would lose approximately $600 to fees over 20 years compared to a zero-fee investment. This is a reasonable fee level for the value provided.
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Pros and Cons of MGK
Pros
- ✓Concentrated portfolio of the most dominant growth companies in the U.S. market
- ✓Extremely low 0.07% expense ratio for a focused mega-cap growth strategy
- ✓Holds proven market leaders with deep competitive moats and pricing power
- ✓Strong historical returns driven by secular trends in technology and digital commerce
Cons
- ✗Heavily tech-concentrated with nearly half the portfolio in the technology sector
- ✗Elevated P/E ratio means the fund is expensive and vulnerable to valuation compression
- ✗Very few holdings means less diversification than a total market index fund
MGK vs Similar ETFs
See how MGK stacks up against similar funds:
Frequently Asked Questions
Is MGK a good ETF for beginners?▾
MGK has a Beginner Suitability Score of 8/10 on our scale. This makes it a strong choice for new investors due to its low fees and focused strategy.
What is the expense ratio of MGK?▾
MGK has an expense ratio of 0.07%. This means for every $10,000 you invest, you pay approximately $7 per year in fees. This is considered very low and cost-efficient.
How much money do I need to invest in MGK?▾
You can invest in MGK with as little as $1 through brokers that offer fractional shares (like Fidelity, Schwab, or Robinhood). There is no minimum investment required beyond the share price itself, which changes daily. Dollar cost averaging — investing a fixed amount regularly — is a popular strategy.
Does MGK pay dividends?▾
Yes, MGK pays dividends with a current yield of approximately 0.50%. Dividends are typically paid quarterly and can be reinvested automatically through most brokers.
What are the top holdings in MGK?▾
The top holdings in MGK include Apple Inc. (14.00%), Microsoft Corp. (13.00%), NVIDIA Corp. (11.00%), and more. The fund holds 73 total positions, providing focused exposure to selected companies.