MGC vs VTI
Vanguard Morningstar Mega Cap ETF vs Vanguard Morningstar Total Stock Market ETF
Quick Verdict
VTI has a lower expense ratio. VTI delivered stronger 1-year returns. VTI offers more diversification with 3,543 holdings.
Side-by-Side Comparison
| Metric | MGC | VTI | Winner |
|---|---|---|---|
| Expense Ratio | 0.05% | 0.03% | |
| AUM | $10.0B | $666.9B | |
| Dividend Yield | 0.93% | 1.07% | |
| Holdings | 177 | 3,543 | |
| YTD Return | +13.71% | +14.82% | |
| 1Y Return | +21.85% | +22.43% | |
| 3Y Return (annualized) | +23.41% | +21.93% | |
| 5Y Return (annualized) | +13.79% | +12.34% | |
| Volatility (annualized) | 15.7% | 15.4% | |
| Max Drawdown | -53.0% | -56.6% | |
| Fund Family | Vanguard (US) | Vanguard (US) | |
| Category | Equity | Equity | |
| Inception | Dec 17, 2007 | May 24, 2001 |
MGC vs VTI Performance
Vanguard Morningstar Mega Cap ETF (MGC) is a ETF from Vanguard (US) and Vanguard Morningstar Total Stock Market ETF (VTI) is a ETF from Vanguard (US). Over the past year MGC returned +21.85% while VTI returned +22.43%. Year to date, MGC is up 13.71% versus a gain of 14.82% for VTI.
Over three years, MGC compounded at +23.41% per year against +21.93% for VTI; over five years the annualized figures are +13.79% and +12.34% respectively. Across the full 19-year window we track, MGC has the edge at +10.10% annualized vs +8.16%. 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 15.4% for VTI. 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 -56.6% for VTI. 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 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 VTI 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 0.93% against 1.07% for VTI.
Holdings Overlap
MGC and VTI share 170 holdings out of 2790 unique holdings combined, representing a 69.8% weight overlap.
High overlap means holding both may not provide much additional diversification.
Frequently Asked Questions
Which is cheaper, MGC or VTI?
MGC has an expense ratio of 0.05% while VTI charges 0.03%. VTI is the cheaper option. On a $10,000 investment, that is $2 per year of difference.
Which performed better, MGC or VTI?
Over the past year MGC returned +21.85% vs +22.43% for VTI, so VTI leads on 1-year performance. Over the longest common window we track (19 years), MGC annualized +10.10% vs +8.16% for VTI. Past performance does not guarantee future results.
Which is riskier, MGC or VTI?
MGC has been the more volatile fund at 15.7% annualized versus 15.4% for VTI. Worst drawdown: MGC -53.0% vs VTI -56.6%.
Should I hold both MGC and VTI?
MGC and VTI have a monthly-return correlation of 0.99, 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 VTI?
MGC and VTI share 170 common holdings with a 69.8% weight overlap. Combined, they hold 2790 unique securities.
Which pays a higher dividend, MGC or VTI?
MGC yields 0.93% while VTI yields 1.07%, so VTI currently pays the higher dividend yield.
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