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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 thanks to heavy exposure to high-quality tech leaders like Apple, Microsoft, and Alphabet, all supported by strong financial performance, growth in AI and cloud, and generally positive technical and earnings trends. Some holdings such as Amazon, Tesla, and Eli Lilly introduce risks through high valuations, cash flow or leverage concerns, and mixed technical signals. The main risk factor is the fund’s concentration in a small group of large growth and technology-focused companies, which can increase volatility if sentiment toward these names or the broader tech sector weakens.
Positive Factors
Strong Mega-Cap Leaders
Several of the largest positions, such as Nvidia, Apple, Broadcom, Alphabet, Amazon, and Eli Lilly, have shown strong gains this year, helping support the fund’s overall results.
Focused Growth Exposure
The ETF concentrates on large, fast-growing U.S. companies, giving investors targeted exposure to many of the market’s key growth drivers.
Low Expense Ratio
The fund’s very low fee means more of the investment returns stay in investors’ pockets instead of going to costs.
Negative Factors
Heavy Concentration in a Few Stocks
A small number of companies, especially Nvidia, Apple, and Microsoft, make up a large share of the portfolio, so weakness in any of them can significantly affect the ETF.
Sector Concentration in Technology
With more than half of the fund in technology and additional weight in tech-related communication services, the ETF is highly sensitive to swings in the tech sector.
Mixed Performance Among Top Holdings
Some major positions like Microsoft, Meta, and Tesla have shown weak performance this year, which can offset gains from stronger holdings and add volatility.

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

MGK Summary

Vanguard Mega Cap Growth ETF (MGK) is a fund that follows the CRSP US Mega Growth index, focusing on some of the largest and fastest-growing companies in the U.S. stock market. It is heavily invested in technology and communication firms, with big names like Apple and Nvidia among its top holdings. Investors might choose MGK if they want long-term growth and broad exposure to leading U.S. companies in one simple investment. However, because it leans strongly toward tech and other growth stocks, its price can rise and fall sharply with changes in the stock market and investor sentiment.
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 being steered largely by a handful of U.S. mega-cap tech and internet giants, with Nvidia, Apple, and Broadcom doing much of the heavy lifting thanks to their rising or steady momentum tied to AI and chip demand. Alphabet and Amazon have been more mixed, helping over the past few months but wobbling lately. On the flip side, Microsoft and Meta look like they’re catching their breath, which has recently weighed on the fund. Outside this tech-heavy core, Eli Lilly adds a healthy dose of healthcare strength but doesn’t change the fund’s clear Big Tech, U.S.-centric flavor.
Name
Company Name
Weight %
Market Value
Market Cap
Yearly Gain
Overall Rating
Nvidia13.21%$4.42B$5.13T20.16%
76
Outperform
Apple12.12%$4.05B$4.79T50.48%
79
Outperform
Microsoft7.47%$2.50B$2.90T-25.31%
79
Outperform
Alphabet Class A5.89%$1.97B$4.16T65.32%
85
Outperform
Alphabet Class C4.64%$1.55B$4.16T64.77%
82
Outperform
Amazon4.44%$1.49B$2.63T0.62%
71
Outperform
Broadcom4.25%$1.42B$1.89T35.94%
76
Outperform
Meta Platforms4.06%$1.36B$1.59T-15.21%
76
Outperform
Tesla3.91%$1.31B$1.40T4.71%
73
Outperform
Eli Lilly & Co3.39%$1.13B$1.10T47.23%
72
Outperform

MGK Technical Analysis

Technical Analysis Sentiment
Negative
Last Price
Price Trends
50DMA
87.99
Negative
100DMA
83.52
Positive
200DMA
82.36
Positive
Market Momentum
MACD
-0.13
Positive
RSI
40.90
Neutral
STOCH
88.89
Negative
Evaluating momentum and price trends is crucial in ETF analysis to make informed investment decisions. For MGK, the sentiment is Negative. The current price of undefined is equal to the 20-day moving average (MA) of 87.31, equal to the 50-day MA of 87.99, and equal to the 200-day MA of 82.36, indicating a neutral trend. The MACD of -0.13 indicates Positive momentum. The RSI at 40.90 is Neutral, neither overbought nor oversold. The STOCH value of 88.89 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for MGK.

MGK Peer Comparison

Comparison Results
Name
Price
Price Target
AUM
Expense Ratio
Overall Rating
$32.67B0.05%
75
Outperform
$222.20B0.03%
74
Outperform
$123.73B0.18%
75
Outperform
$74.17B0.18%
75
Outperform
$59.95B0.04%
74
Outperform
$52.08B0.04%
76
Outperform
Performance Comparison
Ticker
Company Name
Price
Change
% Change
MGK
Vanguard Mega Cap Growth ETF
85.06
9.43
12.47%
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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