ETF Versus

MGK vs VNQ

Vanguard Mega Cap Growth Index Fund vs Vanguard Real Estate Index Fund ETF Shares

Last updated: 2026-04-02

MGK Vanguard

Vanguard Mega Cap Growth Index Fund (MGK) is an exchange-traded fund issued by Vanguard that provides exposure to large-cap U.S. growth stocks with above-average earnings potential. It charges a low expense ratio of 0.07%. The fund offers a modest dividend yield of 0.39%. Launched in 2007, the fund has a 19-year track record.

AUM: $32.5B ER: 0.07% Yield: 0.39% Since: 2007-12-27
VNQ Vanguard

Vanguard Real Estate Index Fund ETF Shares (VNQ) is an exchange-traded fund issued by Vanguard that provides exposure to U.S. real estate investment trusts (REITs) and real estate companies. It charges a low expense ratio of 0.12%. The fund offers an attractive dividend yield of 3.89%. Launched in 2004, the fund has a 22-year track record.

AUM: $65.8B ER: 0.12% Yield: 3.89% Since: 2004-09-29

Quick Verdict

MGK has a slightly lower expense ratio (0.07% vs 0.12%), saving about $99 per $10,000 over 10 years. Over the past year, MGK has significantly outperformed with a 18.2% return vs -1.5%. Income investors may prefer VNQ for its higher yield (3.9% vs 0.4%).

Key Metrics

Metric MGK VNQ
Expense Ratio 0.07% 0.12%
Dividend Yield 0.4% 3.9%
Fund Family Vanguard Vanguard
Category US Large Cap Growth US Real Estate

Performance Chart

Indexed to 100 at start (5-year comparison)

75 100 125 150 175 200 2021-04 2022-06 2023-10 2024-12 2026-04
MGK +72.8%
VNQ -4.4%

Performance Comparison

Period MGK VNQ Difference
1 Month -3.80% -5.96% +2.16%
3 Months -9.72% +1.37% -11.09%
6 Months -8.91% -0.92% -7.99%
YTD -9.72% +1.37% -11.09%
1 Year +18.16% -1.54% +19.70%
3 Years +81.45% +8.92% +72.53%
5 Years +72.76% -4.43% +77.19%

Fee Impact Over Time

Estimated fee cost difference assuming 8% annual returns

Investment Period MGK Fees VNQ Fees You Save
$10,000 10 years $140 $239 $99
$10,000 20 years $600 $1,025 $424
$10,000 30 years $1,938 $3,301 $1,362
$50,000 10 years $698 $1,193 $496
$50,000 30 years $9,692 $16,504 $6,812
$100,000 30 years $19,383 $33,007 $13,624

Risk Metrics

Based on 5 years of daily returns

Metric MGK VNQ
Annualized Volatility 22.6% 18.9%
Max Drawdown -36.4% -38.8%
Sharpe Ratio 0.40 -0.19

Dividend Comparison

Metric MGK VNQ
Annual Dividend (per share) $1.43 $3.49
Dividend Yield 0.39% 3.89%
Distribution Frequency Quarterly Quarterly

Top Holdings

0 of top 9 holdings overlap (0% overlap in top holdings)

MGK Top Holdings

NameWeight
NVIDIA Corp1297.27%
Apple Inc1207.38%
Microsoft Corp1061.93%
Amazon.com Inc457.34%
Tesla Inc446.59%
Meta Platforms Inc445.78%
Alphabet Inc421.92%
Broadcom Inc403.30%
Eli Lilly & Co328.40%

VNQ Top Holdings

NameWeight
Vanguard Real Estate II Index Fund1451.51%
Welltower Inc707.58%
Prologis Inc688.22%
American Tower Corp476.51%
Equinix Inc456.02%
Simon Property Group Inc354.53%
Digital Realty Trust Inc321.26%
Realty Income Corp314.90%
CBRE Group Inc287.69%
Public Storage247.55%

Which One Should You Choose?

Choose MGK if...

you want the lowest fees and plan to buy and hold long-term. Over decades, the expense ratio difference compounds significantly.

Choose MGK if...

recent performance momentum matters to your strategy. Note that past performance doesn't guarantee future results.

Choose VNQ if...

you prioritize dividend income and want higher regular distributions from your portfolio.

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