MGC vs VOO
Vanguard Mega Cap ETF vs Vanguard S&P 500 ETF
Quick Verdict
VOO has a lower expense ratio. MGC delivered stronger 1-year returns. VOO offers more diversification with 505 holdings.
Side-by-Side Comparison
| Metric | MGC | VOO | Winner |
|---|---|---|---|
| Expense Ratio | 0.05% | 0.03% | |
| AUM | $10.0B | $979.0B | |
| Dividend Yield | 1.15% | 1.09% | |
| Holdings | 176 | 509 | |
| YTD Return | +13.54% | +13.79% | |
| 1Y Return | +23.27% | +23.01% | |
| 3Y Return (annualized) | +23.14% | +21.78% | |
| 5Y Return (annualized) | +13.95% | +13.39% | |
| Volatility (annualized) | 15.7% | 14.1% | |
| Max Drawdown | -53.0% | -34.3% | |
| Fund Family | Vanguard (US) | Vanguard (US) | |
| Category | Equity | Equity | |
| Inception | Dec 17, 2007 | Sep 7, 2010 |
MGC vs VOO Performance
Vanguard Mega Cap ETF (MGC) is a ETF from Vanguard (US) and Vanguard S&P 500 ETF (VOO) is a ETF from Vanguard (US). Over the past year MGC returned +23.27% while VOO returned +23.01%. Year to date, MGC is up 13.54% versus a gain of 13.79% for VOO.
Over three years, MGC compounded at +23.14% per year against +21.78% for VOO; over five years the annualized figures are +13.95% and +13.39% respectively. Across the full 16-year window we track, VOO has the edge at +13.57% annualized vs +10.10%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
MGC has been the more volatile fund, with annualized monthly volatility of 15.7% compared with 14.1% for VOO. 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 -34.3% for VOO. Drawdown depth is worth weighing if you expect to sell during market stress rather than ride it out.
The two funds' monthly returns correlate at 1.00. 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 VOO charges 0.03%. On a $10,000 position that is $5 vs $3 annually, a gap of $2 per year that compounds over a long holding period. On income, MGC currently yields 1.15% against 1.09% for VOO.
Holdings Overlap
MGC and VOO share 170 holdings out of 508 unique holdings combined, representing a 79.2% weight overlap.
High overlap means holding both may not provide much additional diversification.
Frequently Asked Questions
Which is cheaper, MGC or VOO?
MGC has an expense ratio of 0.05% while VOO charges 0.03%. VOO is the cheaper option. On a $10,000 investment, that is $2 per year of difference.
Which performed better, MGC or VOO?
Over the past year MGC returned +23.27% vs +23.01% for VOO, so MGC leads on 1-year performance. Over the longest common window we track (16 years), MGC annualized +10.10% vs +13.57% for VOO. Past performance does not guarantee future results.
Which is riskier, MGC or VOO?
MGC has been the more volatile fund at 15.7% annualized versus 14.1% for VOO. Worst drawdown: MGC -53.0% vs VOO -34.3%.
Should I hold both MGC and VOO?
MGC and VOO have a monthly-return correlation of 1.00, so they move almost identically. Holding both adds little diversification - most investors pick one, usually on fees or the specific index tracked.
What is the holdings overlap between MGC and VOO?
MGC and VOO share 170 common holdings with a 79.2% weight overlap. Combined, they hold 508 unique securities.
Which pays a higher dividend, MGC or VOO?
MGC yields 1.15% while VOO yields 1.09%, so MGC currently pays the higher dividend yield.
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