MGK or IVV? The Trade-Off Between Mega-Cap Growth and S&P 500 Breadth

Overview

• MGK outpaced IVV over the trailing 12 months with a 36.7% total return versus 32.6%, based on the funds’ reported figures.
• Risk runs higher in MGK, which showed a five-year beta of 1.23 versus 1.00 for IVV and a deeper maximum drawdown of 36% versus 24.5%.
• Costs favor IVV, which charges a 0.03% expense ratio compared with 0.05% for MGK.
• Holdings reveal the core difference: IVV owns about 504 stocks with roughly 37% in technology, while MGK holds 59 names with about 68% in technology.
• Index design drives these results, as IVV tracks the broad S&P 500 and MGK follows the CRSP US Mega Cap Growth Index focused on the largest growth companies.