MGC vs SPY
Vanguard Morningstar Mega Cap ETF vs State Street SPDR S&P 500 ETF Trust
Which is better, MGC or SPY?
Nearly the same fund. MGC costs less.
MGC has a lower expense ratio. MGC led over 1Y, 3Y, 5Y and the full window. The two have moved almost in lockstep, correlation 0.99. SPY is less concentrated, with 38.2% of the fund in its ten largest positions against 45.5%.
MarketXLS is not an investment adviser. This comparison is generated automatically from market data and is for information only. A Best mark means the better reading on that one measure, not a recommendation to buy.
Side-by-Side Comparison
| Metric | MGC | SPY |
|---|---|---|
| Expense Ratio | 0.05%Best | 0.09% |
| AUM | $10.3B | $823.2B |
| Dividend Yield | 0.92% | 0.99% |
| Holdings | 175 | 1,515 |
| YTD Return | +14.07%Best | +13.53% |
| 1Y Return | +18.28%Best | +17.47% |
| 3Y Return (annualized) | +23.73%Best | +22.36% |
| 5Y Return (annualized) | +14.05%Best | +13.21% |
| Volatility (annualized) | 15.6%Best | 15.7% |
| Max Drawdown | -53.0%Best | -54.5% |
| $10,000 over 5 years | $19,296Best | $18,596 |
| Top 10 Weight | 45.5% | 38.2%Best |
| Fund Family | Vanguard (US) | State Street Investment Management |
| Category | Equity | Equity |
| Style | Large Cap Blend | Large Cap Blend |
| Inception | Dec 17, 2007 | Jan 22, 1993 |
Volatility and max drawdown are measured over the window both funds cover: Dec 24, 2007 to Oct 14, 2026 (18.8 years).
MGC vs SPY growth
Month-end closes. Both lines start at 0% in the first month shown, so the gap between them is the difference in growth across that window. The full view covers the 18.8 years both funds cover.
MGC vs SPY Performance
Vanguard Morningstar Mega Cap ETF (MGC) is an ETF from Vanguard (US) and State Street SPDR S&P 500 ETF Trust (SPY) is an ETF from State Street Investment Management. Over the past year MGC returned +18.28% while SPY returned +17.47%. Year to date, MGC is up 14.07% versus a gain of 13.53% for SPY.
Over three years, MGC compounded at +23.73% per year against +22.36% for SPY; over five years the annualized figures are +14.05% and +13.21% respectively. Across the full 19-year window we track, MGC has the edge at +10.03% annualized vs +9.56%.
Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
SPY has been the more volatile fund, with annualized monthly volatility of 15.7% compared with 15.6% for MGC. Lower volatility generally means a smoother ride, though it often comes with lower long-run returns.
The deepest peak-to-trough decline in our data was -53.0% for MGC and -54.5% for SPY. Drawdown depth is what each fund did in the worst stretch of the window measured above.
The two funds' monthly returns correlate at 0.99. They move almost in lockstep, so holding both mostly duplicates the same exposure.
Fees and Cost Over Time
MGC charges 0.05% per year while SPY charges 0.09%. On a $10,000 position that is $5 vs $9 annually, a gap of $4 per year that compounds over a long holding period. On income, MGC currently yields 0.92% against 0.99% for SPY.
Holdings Overlap
95.2% of MGC's money is in holdings SPY also owns. 80.3% of SPY's money is in holdings MGC also owns.
Most of MGC is already inside SPY. Owning both mostly buys the same companies twice.
160 positions in common, counted across the 172 positions we hold weights for in MGC and 504 in SPY, against full books of 175 and 1,515.
What only one of them owns
Our book lists 335 positions for SPY that do not appear in our book for MGC (18.5% of the fund), and 10 for MGC that do not appear in SPY (4.2%).
Some of those will be the same company recorded under a different code in one of the two books, so the real difference in what you would own is no larger than this and may be smaller. We do not name the individual positions here for that reason.
Top Shared Holdings
| Stock | Weight in MGC | Weight in SPY | Difference |
|---|---|---|---|
| NVDANvidia Corp. | 9.35% | 7.78% | 1.57% |
| AAPLApple Inc | 8.57% | 7.45% | 1.12% |
| MSFTMicrosoft Corp_None_0 | 6.94% | 5.71% | 1.23% |
| AMZNAmazon.Com Inc | 4.63% | 3.78% | 0.85% |
| GOOGLAlphabet Inc-cl A | 3.67% | 3.12% | 0.55% |
| AVGOBroadcom Inc | 3.23% | 2.48% | 0.75% |
| GOOGAlphabet, Inc.- Cl C | 2.88% | 2.49% | 0.39% |
| METAMeta Platforms, Inc. | 2.31% | 2.22% | 0.09% |
| MUMicron Technology, Inc. | 1.99% | 1.59% | 0.40% |
| TSLATesla Mtrs Inc | 1.91% | 1.54% | 0.37% |
95.2% of MGC is already inside SPY.
You probably hold more than these two. Add the rest and see how much of the whole book is the same companies twice.
Free for up to 10 holdings. No account needed.
Frequently Asked Questions
Which is cheaper, MGC or SPY?
MGC has an expense ratio of 0.05% while SPY charges 0.09%. MGC is the cheaper option, by $4 a year on a $10,000 investment.
Which performed better, MGC or SPY?
Over the past year MGC returned +18.28% vs +17.47% for SPY, so MGC leads on 1-year performance. Over the longest common window we track (19 years), MGC annualized +10.03% vs +9.56% for SPY. Past performance does not guarantee future results. This is information, not a recommendation.
Which is riskier, MGC or SPY?
SPY has been the more volatile fund at 15.7% annualized versus 15.6% for MGC. Worst drawdown: MGC -53.0% vs SPY -54.5%.
Should I hold both MGC and SPY?
MGC and SPY have a monthly-return correlation of 0.99, so they move almost identically. What is left to separate them is the fee and the index each one tracks. This is information, not a recommendation.
What is the holdings overlap between MGC and SPY?
95.2% of MGC's money is in holdings SPY also owns. 80.3% of SPY's is in holdings MGC also owns. They hold 160 positions in common, counted across the 172 positions we hold weights for in MGC and 504 in SPY.
Which pays a higher dividend, MGC or SPY?
MGC yields 0.92% while SPY yields 0.99%, so SPY currently pays the higher dividend yield.
Is SPY better than MGC?
MGC has a lower expense ratio. MGC led over 1Y, 3Y, 5Y and the full window. The two have moved almost in lockstep, correlation 0.99. SPY is less concentrated, with 38.2% of the fund in its ten largest positions against 45.5%. Which one suits a particular account depends on what it is for. This is information, not a recommendation.