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MGK - ETF AI Analysis

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MGK

Vanguard Mega Cap Growth ETF (MGK)

Rating:75Outperform
Price Target:
MGK, the Vanguard Mega Cap Growth ETF, earns a solid overall rating because it is heavily invested in high-quality growth leaders like Apple, Microsoft, and Alphabet, which all show strong financial performance, positive earnings outlooks, and promising growth in areas like cloud computing and AI. These strengths are slightly tempered by holdings such as Amazon, Tesla, and Eli Lilly, where high valuations, mixed technical signals, and leverage or cash flow concerns introduce more risk. The main risk factor is the fund’s concentration in a small group of large, growth-focused tech and AI-related companies, which can increase volatility if sentiment toward this sector shifts.
Positive Factors
Low Expense Ratio
The fund’s very low fee means more of any gains can stay in investors’ pockets instead of going to costs.
Large, Established Growth Companies
The ETF is built around many of the biggest and most well-known growth stocks, several of which have shown strong recent performance and help support the fund’s returns.
Strong Technology and Communication Exposure
Heavy exposure to technology and communication services gives investors access to sectors that have recently shown solid momentum and growth potential.
Negative Factors
High Stock Concentration
A small group of mega-cap names makes up a large share of the portfolio, so weakness in just a few companies can significantly affect the fund.
Mixed Performance Among Top Holdings
Some of the largest positions have recently shown weak or negative performance, which can drag on overall returns even when other holdings are doing well.
Limited Geographic Diversification
With almost all assets invested in U.S. companies, the fund offers little protection if the U.S. market struggles compared with other regions.

MGK vs. SPDR S&P 500 ETF (SPY)

MGK Summary

The Vanguard Mega Cap Growth ETF (MGK) tracks the CRSP US Mega Growth Index, focusing on very large U.S. companies with strong growth potential, especially in technology and communication services. Its biggest holdings include well-known names like Apple, Microsoft, Nvidia, Amazon, and Alphabet (Google). Someone might invest in MGK to seek long-term growth by owning many leading companies in one simple fund, instead of picking individual stocks. A key risk is that it is heavily tilted toward tech and other growth stocks, so its price can rise and fall sharply with changes in that part of the market.
How much will it cost me?The Vanguard Mega Cap Growth ETF (MGK) has an expense ratio of 0.07%, which means you’ll pay $0.70 per year for every $1,000 invested. This is lower than average because it’s a passively managed fund that tracks an index, keeping costs down for investors.
What would affect this ETF?The Vanguard Mega Cap Growth ETF (MGK) could benefit from continued innovation and strong performance in the technology sector, which makes up a significant portion of its holdings, as well as economic growth that supports consumer spending and healthcare advancements. However, rising interest rates or regulatory changes targeting large-cap tech companies could negatively impact its top holdings, while broader economic slowdowns may reduce demand in consumer and cyclical sectors.

MGK Top 10 Holdings

MGK is riding on the shoulders of U.S. mega-cap tech, with Nvidia and Broadcom powering ahead as the fund’s star semiconductors, giving the portfolio a strong AI-driven tailwind. Apple and Amazon are also rising, helping keep overall momentum positive. Microsoft and Meta look more mixed, occasionally tapping the brakes after earlier strength. On the weaker side, Tesla and Eli Lilly have been lagging, acting as small drags rather than full-on anchors. Overall, this is a U.S.-centric, Big Tech–heavy story with a clear growth and innovation tilt.
Name
Company Name
Weight %
Market Value
Market Cap
Yearly Gain
Overall Rating
Nvidia13.72%$3.83B$5.06T99.22%
76
Outperform
Apple12.58%$3.51B$3.98T27.35%
79
Outperform
Microsoft9.00%$2.51B$3.15T8.60%
79
Outperform
Alphabet Class A5.50%$1.54B$4.15T118.13%
85
Outperform
Amazon4.59%$1.28B$2.84T39.12%
71
Outperform
Broadcom4.40%$1.23B$2.00T117.28%
76
Outperform
Alphabet Class C4.36%$1.22B$4.15T114.58%
82
Outperform
Tesla4.18%$1.16B$1.41T32.46%
73
Outperform
Meta Platforms4.16%$1.16B$1.71T23.44%
76
Outperform
Eli Lilly & Co3.17%$883.56M$835.18B-1.03%
72
Outperform

MGK Technical Analysis

Technical Analysis Sentiment
Positive
Last Price
Price Trends
50DMA
78.08
Positive
100DMA
79.64
Positive
200DMA
79.49
Positive
Market Momentum
MACD
2.10
Negative
RSI
69.33
Neutral
STOCH
75.54
Neutral
Evaluating momentum and price trends is crucial in ETF analysis to make informed investment decisions. For MGK, the sentiment is Positive. The current price of undefined is equal to the 20-day moving average (MA) of 81.20, equal to the 50-day MA of 78.08, and equal to the 200-day MA of 79.49, indicating a bullish trend. The MACD of 2.10 indicates Negative momentum. The RSI at 69.33 is Neutral, neither overbought nor oversold. The STOCH value of 75.54 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for MGK.

MGK Peer Comparison

Comparison Results
Name
Price
Price Target
AUM
Expense Ratio
Overall Rating
$31.89B0.05%
75
Outperform
$210.60B0.03%
75
Outperform
$123.54B0.18%
75
Outperform
$69.18B0.18%
75
Outperform
$53.75B0.04%
75
Outperform
$48.70B0.04%
76
Outperform
Performance Comparison
Ticker
Company Name
Price
Change
% Change
MGK
Vanguard Mega Cap Growth ETF
84.75
20.44
31.78%
VUG
Vanguard Growth ETF
IWF
iShares Russell 1000 Growth ETF
IVW
iShares S&P 500 Growth ETF
SCHG
Schwab U.S. Large-Cap Growth ETF
SPYG
SPDR Portfolio S&P 500 Growth ETF
Glossary
BuyAn ETF rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the ETF is likely to deliver higher returns compared to other ETFs in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldAn ETF rated as a "Hold" s expected to perform in line with the overall market or a specific benchmark. This rating indicates that the ETF is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellAn ETF rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the ETF may deliver lower returns compared to other ETFs in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
DisclaimerThis AI Analyst ETF Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in ETFs carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: ―
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