The Second-Best Performing Vanguard ETF Over the Last Decade Is Issuing a 5-For-1 Stock Split. Here's Why It's a Screaming Buy in April.

By Daniel Foelber – Apr 4, 2026 at 10:00AM ESTKey PointsThis exchange-traded fund (ETF) has endured significant selloffs in recent years.The volatility has been a net positive for investors, as the ETF has produced monster gains.The sell-off is narrowing the valuation gap between the Vanguard Mega Cap Growth ETF and the S&P 500. Investment management firm Vanguard has announced share splits for five of its most popular equity index exchange-traded funds (ETFs) -- including the Vanguard Mega Cap Growth ETF (MGK +0.03%). Effective April 21, the ETF will be undergoing a 5-for-1 stock split "to widen availability for investors by keeping share prices within accessible trading ranges." The split will quintuple the number of outstanding shares while reducing the share price to a split-adjusted level around $70 -- based on the price at the time of this writing. Here's why the Mega Cap Growth ETF is one of the best ETFs for growth investors to buy in April. Image source: Getty Images. A highly volatile ETF The Mega Cap Growth ETF has averaged an 18.3% annual return over the past 10 years, ranking second only to the Vanguard Information Technology ETF among Vanguard's 65 equity ETFs in that period. The price of admission to unlock those gains has been volatility. Over the last decade, the fund has endured two drawdowns of at least 20% -- in December 2018 and April 2025 -- as well as two drawdowns of over 30% in March 2020 and December 2022. At the time of this writing, the ETF is down 17% from its all-time high achieved in October 2025. If the fund breaks below a 20% drawdown, that would mean it has suffered essentially five bear markets in less than eight years. But despite all of those sell-offs, the fund has still crushed the S&P 500 over the last decade -- showcasing the power of long-term compounding for patient investors. MGK Total Return Level data by YCharts Betting big on a handful of companies The Mega Cap Growth ETF is volatile by design. It's a concentrated bet on a handful of mega-cap growth stocks continuing to drive the major index to new heights. The 10 largest holdings in the ETF -- Nvidia, Apple, Alphabet, Microsoft, Amazon, Meta Platforms, Tesla, Broadcom, Eli Lilly, and Visa -- make up a staggering 67.7% of the fund. For context, the 10 largest S&P 500 components make up 37.9% of the index. So if these companies are outperforming the S&P 500, chances are the Mega Cap Growth ETF will produce outsized gains. This is exactly what happened over the last decade. But the concentration can amplify losses during a market downturn. ExpandNYSEMKT: MGKVanguard World Fund - Vanguard Mega Cap Growth ETFToday's Change(0.03%) $0.11Current Price$371.84Key Data PointsDay's Range$363.62 - $372.6052wk Range$262.65 - $426.80Volume487K A top ETF for long-term growth investors For the Vanguard Mega Cap Growth ETF to continue outperforming the S&P 500 over the long term, earnings growth rates have to justify the valuations of its top holdings. And when valuations come down, as they are now, it becomes easier for companies to exceed expectations.

The Mega Cap Growth ETF now sports a price-to-earnings (P/E) ratio of 31.1 -- compared to 25.1 P/E of the Vanguard S&P 500 ETF. So a basket of top mega cap growth stocks still trades at a premium to the S&P 500, but not by nearly as much as a few months ago. Some investors are uncertain about the payoff from capital-intensive artificial intelligence (AI) spending, weakening consumer spending, geopolitical tensions, and the inflationary pressures of rising oil prices. All of those risks are worth considering before buying growth stocks. But investors with a long-term time horizon are getting a compelling opportunity to buy the Mega Cap Growth ETF in April for its lowest price since June of last year. The stock split will allow investors to scoop up a full share of the ETF at a lower price. And with a mere 0.05% expense ratio, the fund offers a low-cost way to bet big on top U.S. growth stocks without racking up a lot of fees. Despite its redeeming qualities, the growth stock ETF is best suited for risk-tolerant investors who can stomach volatility. Before buying the ETF, it's worth conducting a portfolio review to ensure you're OK with potentially duplicating holdings -- especially if you already have sizable positions in some of the largest technology companies by market value.Read NextMar 25, 2026 •By Katie BrockmanIWO vs. MGK: Is Small-Cap Growth or Mega-Cap Tech the Better Choice for Investors?Mar 25, 2026 •By Katie BrockmanMGK Offers Focused Growth While VOOG Provides Broader Diversification: Which Is the Right ETF for You?Mar 25, 2026 •By Jake LerchGo Big or Go Small? IWM Targets Small-Cap Stocks; MGK Owns Big Tech StocksMar 9, 2026 •By Daniel FoelberContrarian Take: Vanguard's 3 Worst-Performing Equity ETFs in 2026 Are All Buys in MarchMar 8, 2026 •By Adam Levy6 Best Growth ETFs to Buy in 2026: Are They Right for Your Portfolio?Apr 4, 2026 •By David DierkingThe Vanguard ETF Portfolio That Could Replace a Financial AdvisorAbout the AuthorDaniel Foelber is a contributing Motley Fool stock market analyst with extensive experience covering the broader stock market and publicly traded companies across energy, industrials, utilities, materials, technology, communications, consumer discretionary, consumer staples, and financial stocks. Daniel looks for industry leaders offering compelling growth, value, or dividends to generate passive income. He has also written for energy trade publications and helped build oil and gas training modules. He holds a bachelor’s degree in finance and a certificate in personal financial planning from the University of Houston. He believes the best investors are those who focus on fundamentals, remain steady through volatility, and filter out market noise.TMFpalomino2Stocks MentionedVanguard World Fund - Vanguard Mega Cap Growth ETFNYSEMKT: MGK$371.84(+0.03%)+$0.11*Average returns of all recommendations since inception. Cost basis and return based on previous market day close.