Key Points
IVV is less expensive to own and delivers a significantly higher yield than MGK.
MGK is far more concentrated in technology and large growth names, while IVV spreads risk across all S&P 500 sectors.
IVV has experienced smaller historical drawdowns and offers superior liquidity for large trades.
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The Vanguard Mega Cap Growth ETF (NYSEMKT:MGK) and the iShares Core S&P 500 ETF (NYSEMKT:IVV) differ most sharply on sector exposure, diversification, and income, with IVV offering broader coverage and a higher yield at a slightly lower cost.
Both MGK and IVV track large-cap U.S. equities, but while MGK focuses tightly on mega-cap growth stocks, IVV mirrors the entire S&P 500. This comparison looks at cost, performance, risk, portfolio makeup, and trading characteristics to help investors decide which may better align with their goals.
Snapshot (cost & size)
| Metric | MGK | IVV |
|---|---|---|
| Issuer | Vanguard | IShares |
| Expense ratio | 0.05% | 0.03% |
| 1-yr return (as of 2026-02-27) | 16.4% | 17.3% |
| Dividend yield | 0.4% | 1.2% |
| Beta | 1.17 | 1.00 |
| AUM | $31.8 billion | $750.7 billion |
Beta measures price volatility relative to the S&P 500; beta is calculated from five-year monthly returns. The 1-yr return represents total return over the trailing 12 months.
IVV is slightly more affordable than MGK, with a lower expense ratio, and it also delivers a notably higher yield — potentially appealing for those seeking income alongside equity exposure.
Performance & risk comparison
| Metric | MGK | IVV |
|---|---|---|
| Max drawdown (5 y) | -36.01% | -24.53% |
| Growth of $1,000 over 5 years | $1,863 | $1,763 |
What's inside
IVV tracks the S&P 500, holding 503 stocks and providing exposure across all major sectors, with a tilt toward technology (34%), financial services (13%), and communication services (11%). Its largest holdings — Nvidia (NASDAQ:NVDA) at 7.31%, Apple Inc. (NASDAQ:AAPL) at 6.63%, and Microsoft (NASDAQ:MSFT) at 4.96% — reflect its market-cap weighting. With over 25 years of history, IVV is among the oldest and most liquid U.S. equity ETFs.
MGK, in contrast, is highly concentrated in technology (69%), followed by consumer cyclicals (14%) and healthcare (5%). Its top positions are even more focused: Nvidia (NASDAQ:NVDA) at 13.52%, Apple (NASDAQ:AAPL) at 11.72%, and Microsoft (NASDAQ:MSFT) at 9.61%. MGK’s approach may suit investors seeking targeted exposure to the largest U.S. growth companies, but it comes with less diversification than IVV.
For more guidance on ETF investing, check out the full guide at this link.
What this means for investors
Making a decision to invest in either the Vanguard Mega Cap Growth ETF (MGK) or the iShares Core S&P 500 ETF (IVV) comes down to a few key factors. The biggest of these is MGK’s focus on high growth large-cap stocks, while IVV seeks to reflect the performance of the S&P 500.
MGK’s focus has led to a concentration in tech stocks, with its top three positions possessing a large influence on the performance of the fund. Nvidia shares, in particular, are highly volatile with a beta exceeding two. Therefore, MGK is for investors who prioritize growth potential in exchange for greater volatility and risk, as demonstrated by MGK’s significantly higher max drawdown over the past five years.
By contrast, IVV is more diversified across sectors, which helps to limit any adverse impact of its holdings in the tech sector. Its much higher AUM also provides greater liquidity. In addition, IVV boasts a far higher dividend yield, which can appeal to income-oriented investors.
IVV is ideal for those who want stability, and wish to have an ETF that they can hold for the long term. MGK is for investors who are willing to take on risk for more growth, and is better for those who are looking to ride the wave of tech stock growth.
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Robert Izquierdo has positions in Apple, Microsoft, and Nvidia. The Motley Fool has positions in and recommends Apple, Microsoft, and Nvidia. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
