The Vanguard Mega Cap Progress ETF (NYSEMKT:MGK) and the State Road SPDR S&P 500 ETF Belief (NYSEMKT:SPY) each present publicity to most of the market’s largest names.
SPY tracks the S&P 500 Index for broad U.S. large-cap protection, whereas MGK targets U.S. mega-cap development firms, leading to totally different sector tilts, historic danger, and yield profiles for buyers looking for development versus stability.
|
Metric |
SPY |
MGK |
|---|---|---|
|
Issuer |
SPDR |
Vanguard |
|
Expense ratio |
0.09% |
0.07% |
|
1-yr return (as of Feb. 3, 2026) |
14.38% |
14.27% |
|
Dividend yield |
1.07% |
0.35% |
|
AUM |
$712 billion |
$32 billion |
|
Beta (5Y month-to-month) |
1.00 |
1.20 |
Beta measures worth volatility relative to the S&P 500. The 1-yr return represents whole return over the trailing 12 months.
MGK is barely extra reasonably priced than SPY with a decrease expense ratio. Nevertheless, SPY additionally provides a considerably larger dividend yield, which can attraction to buyers looking for passive dividend earnings from an ETF.
|
Metric |
SPY |
MGK |
|---|---|---|
|
Max drawdown (5 y) |
-24.50% |
-36.02% |
|
Progress of $1,000 over 5 years |
$1,805 |
$1,892 |
MGK has delivered marginally stronger development over 5 years. Nevertheless, its a lot deeper max drawdown highlights its higher volatility and drawdown danger relative to SPY.
MGK focuses on U.S. mega-cap development shares, with expertise making up 55% of the portfolio, adopted by communication providers at 17% and client cyclical at 13%. The fund holds 60 shares, with Nvidia, Apple, and Microsoft as its largest positions.
SPY, in distinction, tracks the S&P 500, offering broader diversification. Round 35% of the portfolio is allotted to tech, with monetary providers making up 13% and communication providers at 11%. Its high positions match MGK’s, however with decrease particular person weightings.
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SPY and MGK can each be unbelievable investments relying on what you’re trying to obtain with an ETF.
As an S&P 500 ETF, SPY provides higher diversification and stability. It contains simply over 500 large-cap shares throughout all sectors of the market, and whereas it’s pretty closely weighted towards tech, it additionally contains loads of established shares that may assist scale back the affect of volatility.
MGK, alternatively, is far narrower in focus, holding only a fraction of SPY’s shares. Nevertheless, that focused method can assist it earn larger returns over time, because it’s much less probably that lower-performing shares will dilute the fund’s whole returns.
Progress ETFs have higher incomes potential than well-diversified broad-market funds, however they’ll additionally expertise higher worth swings — as seen with MGK’s deeper max drawdown and better beta.
