Vanguard Mega Cap ETF (MGC) ETF Analysis

For informational purposes only. Not financial advice.

Quick Answer

The Vanguard Mega Cap ETF (MGC) offers diversified exposure to the largest U.S. stocks, representing approximately the top 70% of the market capitalization.

With $10.30 billion in assets under management, MGC employs a passively managed, full-replication approach to track the CRSP US Mega Cap Index. Its low expense ratio of 0.0500% makes it an attractive option for investors seeking cost-effective exposure to mega-cap equities. Past performance does not guarantee future results.

Vanguard Mega Cap ETF (MGC) ETF — Price, Holdings & Analysis

The Vanguard Mega Cap ETF (MGC) offers diversified exposure to the largest U.S. stocks, representing approximately the top 70% of the market capitalization. With $10.30 billion in assets under management, MGC employs a passively managed, full-replication approach to track the CRSP US Mega Cap Index. Its low expense ratio of 0.0500% makes it an attractive option for investors seeking cost-effective exposure to mega-cap equities. Past performance does not guarantee future results.

ETF Overview

Seeks to track the performance of the CRSP US Mega Cap Index.Employs a passively managed, full-replication approach.Provides a convenient way to get diversified exposure to the largest U.S. stocks representing approximately the top 70% of market capitalization.With respect to 75% of its total assets, the fund may not: (1) purchase more than 10% of the outstanding voting securities of any one issuer or (2) purchase securities of any issuer if, as a result, more than 5% of the fund’s total assets would be invested in that issuer’s securities; except as may be necessary to approximate the composition of its target index. This limitation does not apply to obligations of the U.S. government or its agencies or instrumentalities.

MGC seeks to replicate the performance of the CRSP US Mega Cap Index, providing investors with a convenient way to access the largest U.S. companies. The fund utilizes a full-replication strategy, meaning it invests in all the stocks within the index, aiming to mirror its composition closely. This approach results in a portfolio of 189 holdings, dominated by technology and communication services sectors, with allocations of 37.9% and 13.0% respectively. The fund's top holdings include well-known mega-cap names such as NVIDIA Corp (9.03%), Apple Inc (7.85%), and Microsoft Corp (6.55%). MGC is suitable for investors seeking broad exposure to the mega-cap segment of the U.S. equity market, offering diversification across various sectors and companies. Its passive management style aims to deliver returns in line with the underlying index, making it a core holding for many portfolios. Past performance does not guarantee future results.

Risk Metrics

MGC, while diversified across 189 holdings, exhibits concentration risk due to its focus on mega-cap companies. The top 10 holdings constitute a significant portion of the fund's assets, potentially leading to performance being heavily influenced by these companies. Sector concentration is also a factor, with technology stocks making up 37.9% of the portfolio, exposing the fund to sector-specific risks. With a beta of 1.01, MGC's volatility is similar to the overall market. The fund's expense ratio of 0.0500% helps to mitigate the impact of expenses on returns, but it's important to remember that even low expenses can still detract from overall performance. These factors when assessing the suitability of MGC for their risk tolerance and investment objectives may be worth researching. Past performance does not guarantee future results.

Expense Ratio

0.05%

What does MGC hold?

Holding	Weight
NVIDIA Corp (NVDA)	9.03%
Apple Inc (AAPL)	7.85%
Microsoft Corp (MSFT)	6.55%
Amazon.com Inc (AMZN)	4.71%
Alphabet Inc Class A (GOOGL)	4.03%
Broadcom Inc (AVGO)	3.20%
Meta Platforms Inc Class A (META)	3.20%
Alphabet Inc Class C (GOOG)	3.19%
Tesla Inc (TSLA)	2.49%
Eli Lilly and Co (LLY)	1.81%

How Is the Fund Allocated?

Sector	Weight
Technology	37.9%
Communication Services	13.0%
Financial Services	12.6%
Consumer Cyclical	10.4%
Healthcare	9.8%
Industrials	6.3%
Consumer Defensive	4.8%
Energy	2.5%
Basic Materials	1.1%
Utilities	1.0%
Real Estate	0.9%

Country	Weight
United States	97.5%
Ireland	1.3%
Other	0.5%
United Kingdom	0.4%
Switzerland	0.2%

Dividend Yield

0.93%

Vanguard S&P 500 ETF (VOO) — 0.03% expense ratio
Vanguard Morningstar Total Stock Market ETF (VTI) — 0.03% expense ratio
First Trust Large Cap Value AlphaDEX Fund (FTA) — 0.58% expense ratio
First Trust Bloomberg R&D Leaders ETF (RND) — 0.60% expense ratio

Vanguard S&P 500 ETF (VOO) (Large Cap Equity) — 0.03% expense ratio
Vanguard Morningstar Total Stock Market ETF (VTI) (Large Cap Equity) — 0.03% expense ratio
Vanguard Total Bond Market ETF (BND) (Core Investment Grade Bond) — 0.03% expense ratio
Vanguard Real Estate ETF (VNQ) (Real Estate (Listed/REITs)) — 0.13% expense ratio
Vanguard Long-Term Corporate Bond ETF (VCLT) (Core Investment Grade Bond) — 0.03% expense ratio
Vanguard Ultra-Short Bond ETF (VUSB) (Core Investment Grade Bond) — 0.10% expense ratio

Risk Metrics

Beta: 1.01

Questions & Answers

What is MGC and what does it track?

The Vanguard Mega Cap ETF (MGC) is an exchange-traded fund designed to track the performance of the CRSP US Mega Cap Index. This index represents the mega-capitalization segment of the U.S. equity market, encompassing the largest companies by market cap.

MGC provides investors with a convenient and cost-effective way to gain diversified exposure to these leading U.S. stocks.

What is the expense ratio for MGC?

The expense ratio for the Vanguard Mega Cap ETF (MGC) is 0.0500%. This means that for every $10,000 invested in the fund, the annual cost is $5.00.

This is significantly lower than the average expense ratio for similar large-cap equity ETFs, which is approximately 0.44%.

What are the top holdings in MGC?

As of 2026-03-15, the top holdings in the Vanguard Mega Cap ETF (MGC) are concentrated in a few leading technology and consumer discretionary companies. The largest holding is NVIDIA Corp, representing 9.03% of the fund's assets.

Apple Inc follows at 7.85%, and Microsoft Corp accounts for 6.55%.

Is MGC a good long-term investment?

MGC offers exposure to the largest U.S. companies, which can provide stability and growth potential over the long term. The fund's low expense ratio of 0.0500% can help to minimize the impact of fees on returns over time.

However, MGC's performance is closely tied to the performance of the mega-cap segment of the U.S.

How does MGC compare to similar ETFs?

MGC distinguishes itself through its focus on mega-cap stocks and its exceptionally low expense ratio of 0.0500%. Compared to other large-cap ETFs, MGC may have a higher concentration in the very largest companies.

Does MGC pay dividends?

Yes, the Vanguard Mega Cap ETF (MGC) distributes dividends to its shareholders. As of 2026-03-15, MGC has a dividend yield of 0.93%.

This means that for every $100 invested in the fund, investors can expect to receive approximately $0.93 in dividend income annually.

Disclaimer: This content is for informational purposes only and does not constitute investment advice. Always do your own research and consult a financial advisor.

Data provided for informational purposes only.

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