ETF Versus

MGC vs VOO

Vanguard Mega Cap Index Fund vs Vanguard S&P 500 ETF

Last updated: 2026-04-02

MGC

Vanguard Mega Cap Index Fund (MGC) is an exchange-traded fund that provides exposure to large-cap U.S. equities across growth and value styles. It charges a very low expense ratio of 0.05%. The fund offers a moderate dividend yield of 1.01%. Launched in 2007, the fund has a 19-year track record.

AUM: $8.4B ER: 0.05% Yield: 1.01% Since: Dec 24, 2007
VOO Vanguard

Vanguard S&P 500 ETF (VOO) is an exchange-traded fund issued by Vanguard that provides exposure to large-cap U.S. equities across growth and value styles. It charges a very low expense ratio of 0.03%. The fund offers a moderate dividend yield of 1.18%. Launched in 2010, the fund has a 16-year track record.

AUM: $792.0B ER: 0.03% Yield: 1.18% Since: Sep 7, 2010

Quick Verdict

VOO has a slightly lower expense ratio (0.03% vs 0.05%), saving about $40 per $10,000 over 10 years. MGC has edged ahead over the past year (17.8% vs 16.8%).

Key Metrics

Metric MGC VOO
Expense Ratio 0.05% 0.03%
Dividend Yield 1.0% 1.2%
Fund Family N/A Vanguard
Category US Large Cap Blend US Large Cap Blend

Performance Chart

Indexed to 100 at start (5-year comparison)

85 104 123 142 161 180 2021-04 2022-06 2023-09 2024-12 2026-04
MGC +65.6%
VOO +61.3%

Performance Comparison

Period MGC VOO Difference
1 Month -4.37% -4.59% +0.22%
3 Months -5.14% -4.14% -1.00%
6 Months -2.78% -2.11% -0.67%
YTD -5.14% -4.14% -1.00%
1 Year +17.79% +16.77% +1.02%
3 Years +65.68% +59.52% +6.16%
5 Years +65.63% +61.27% +4.36%

Fee Impact Over Time

Estimated fee cost difference assuming 8% annual returns

Investment Period MGC Fees VOO Fees You Save
$10.000 10 years $100 $60 $40
$10.000 20 years $430 $258 $171
$10.000 30 years $1.388 $835 $553
$50.000 10 years $499 $299 $199
$50.000 30 years $6.941 $4.176 $2.765
$100.000 30 years $13.882 $8.352 $5.531

Risk Metrics

Based on 5 years of daily returns

Metric MGC VOO
Annualized Volatility 17.3% 16.8%
Max Drawdown -26.6% -25.4%
Sharpe Ratio 0.41 0.39

Dividend Comparison

Metric MGC VOO
Annual Dividend (per share) $2.42 $7.13
Dividend Yield 1.01% 1.18%
Distribution Frequency Quarterly Quarterly

Top Holdings

8 of top 9 holdings overlap (89% overlap in top holdings)

MGC Top Holdings

NameWeight
NVIDIA CorporationNVDA8.53%
Apple Inc.AAPL8.14%
Microsoft CorporationMSFT6.09%
Amazon.com, Inc.AMZN4.22%
Broadcom Inc.AVGO3.15%
Alphabet Inc.GOOG2.99%
Meta Platforms, Inc.META2.95%
Tesla, Inc.TSLA2.37%
Eli Lilly and CompanyLLY1.87%

VOO Top Holdings

NameWeight
NVIDIA CorporationNVDA7.31%
Apple Inc.AAPL6.63%
Microsoft CorporationMSFT4.96%
Amazon.com, Inc.AMZN3.47%
Broadcom Inc.AVGO2.56%
Alphabet Inc.GOOG2.46%
Meta Platforms, Inc.META2.40%
Tesla, Inc.TSLA1.92%
Berkshire Hathaway Inc.BRK.B1.57%

Which One Should You Choose?

Choose VOO if...

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

Either works if...

you just need broad us large cap blend exposure. Both are solid options — pick whichever your brokerage offers commission-free.

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