ETF Versus

MGK vs XLI

Vanguard Mega Cap Growth Index Fund vs State Street Industrial Select Sector SPDR ETF

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
XLI State Street

State Street Industrial Select Sector SPDR ETF (XLI) is an exchange-traded fund issued by State Street that provides exposure to us sector - industrials securities. It charges a low expense ratio of 0.09%. The fund offers a moderate dividend yield of 1.25%. Launched in 1998, the fund has a 28-year track record.

AUM: $25.6B ER: 0.09% Yield: 1.25% Since: 1998-12-22

Quick Verdict

MGK has a slightly lower expense ratio (0.07% vs 0.09%), saving about $40 per $10,000 over 10 years. Over the past year, XLI has significantly outperformed with a 23.4% return vs 18.2%. Income investors may prefer XLI for its higher yield (1.3% vs 0.4%).

Key Metrics

Metric MGK XLI
Expense Ratio 0.07% 0.09%
Dividend Yield 0.4% 1.3%
Fund Family Vanguard State Street
Category US Large Cap Growth US Sector - Industrials

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%
XLI +64.2%

Performance Comparison

Period MGK XLI Difference
1 Month -3.80% -6.38% +2.58%
3 Months -9.72% +3.96% -13.68%
6 Months -8.91% +5.87% -14.78%
YTD -9.72% +3.96% -13.68%
1 Year +18.16% +23.44% -5.28%
3 Years +81.45% +62.04% +19.41%
5 Years +72.76% +64.24% +8.52%

Fee Impact Over Time

Estimated fee cost difference assuming 8% annual returns

Investment Period MGK Fees XLI Fees You Save
$10,000 10 years $140 $179 $40
$10,000 20 years $600 $771 $170
$10,000 30 years $1,938 $2,486 $547
$50,000 10 years $698 $896 $199
$50,000 30 years $9,692 $12,428 $2,736
$100,000 30 years $19,383 $24,855 $5,472

Risk Metrics

Based on 5 years of daily returns

Metric MGK XLI
Annualized Volatility 22.6% 17.2%
Max Drawdown -36.4% -22.7%
Sharpe Ratio 0.40 0.40

Dividend Comparison

Metric MGK XLI
Annual Dividend (per share) $1.43 $2.05
Dividend Yield 0.39% 1.25%
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%

XLI Top Holdings

NameWeight
General Electric Co680.74%
Caterpillar Inc561.69%
RTX Corp515.19%
GE Vernova Inc371.52%
Boeing Co/The356.20%
Uber Technologies Inc355.71%
Union Pacific Corp287.47%
Honeywell International Inc259.50%
Eaton Corp PLC259.19%
Deere & Co245.23%

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 XLI if...

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

Choose XLI if...

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

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