Which Is the Better Large-Cap ETF, Vanguard's MGK or State Street's SPY?

By Robert Izquierdo – Apr 18, 2026 at 9:52AM ESTKey PointsMGK has delivered a higher one-year return and comes with a deeper five-year drawdown compared to SPY.MGK’s expense ratio is slightly lower than SPY, but its dividend yield is much lower.MGK tilts heavily toward technology and growth, while SPY offers broader sector diversification.The State Street SPDR S&P 500 ETF Trust (SPY +1.22%) and Vanguard Mega Cap Growth ETF (MGK +1.44%) both provide access to large-cap U.S. stocks, but MGK features a much heavier technology tilt, higher recent returns, and a notably lower yield compared to SPY.Both SPY and MGK aim to capture the performance of leading U.S. equities, but their approaches differ. SPY tracks the broad S&P 500 Index, offering wide sector exposure, while MGK targets the largest growth-oriented names, resulting in a more concentrated and tech-heavy portfolio. This comparison highlights how those differences play out in cost, performance, risk, and portfolio makeup.Snapshot (cost & size)MetricSPYMGKIssuerSPDRVanguardExpense ratio0.09%0.05%1-yr return (as of 2026-04-16)35.0%40.8%Dividend yield1.1%0.4%Beta1.001.17AUM$651.6 billion$27.9 billionBeta measures price volatility relative to the S&P 500; beta is calculated from five-year monthly returns. The 1-yr return represents total return over the trailing 12 months.MGK is slightly more affordable on fees, with an expense ratio of 0.05% versus SPY’s 0.09%, but investors give up a significant amount of dividend income: MGK yields just 0.4%, while SPY yields 1.1%.Performance & risk comparisonMetricSPYMGKMax drawdown (5 y)-24.50%-36.02%Growth of $1,000 over 5 years$1,809$1,895What's insideMGK tracks a mega-cap growth index, resulting in a concentrated portfolio of 69 stocks, with technology accounting for 54% of assets and heavy weights in communication services and consumer cyclicals. Its three largest holdings — Nvidia (NVDA +1.67%), Apple (AAPL +2.65%), and Microsoft (MSFT +0.60%) — make up over a third of the fund, and its 18.3-year track record underscores its staying power. Investors looking for targeted exposure to large-cap growth, especially in tech, may find MGK’s approach appealing.SPY, by contrast, holds over 500 companies and provides broader diversification across sectors, including substantial allocations to financial services and communication services alongside technology. Its largest positions — Nvidia, Apple, and Microsoft — are similar to MGK’s, but the overall portfolio is more balanced, reducing single-sector risk compared to MGK’s tech-heavy tilt.For more guidance on ETF investing, check out the full guide at this link.What this means for investorsThe State Street SPDR S&P 500 ETF Trust (SPY) and Vanguard Mega Cap Growth ETF (MGK) offer different approaches for investors seeking exposure to large-cap stocks. Choosing between this pair of funds depends on the goals and considerations that are important to you.MGK is ideal for those who want to invest in the largest growth stocks in the U.S. market. The low expense ratio and strong one-year return provide compelling reasons to consider this ETF. However, because the fund contains only 69 stocks that are heavily weighted towards its top three holdings, your fortunes depend quite a bit on how Nvidia, Apple, and Microsoft are doing.SPY is for investors who desire exposure to the entire S&P 500, which provides a great foundation for an investment portfolio. The ETF avoids MGK’s shortcomings by offering robust diversification across sectors thanks to the number of companies in the fund. SPY’s expense ratio is higher than MGK’s, but it delivers a far bigger dividend yield to offset this cost.If your priority is mega-cap growth stocks and a low cost, MGK is the ETF for you. If you want a fund that provides a mix of growth and income, and is representative of the S&P 500, SPY is the clear choice.Read NextApr 18, 2026 •By Robert IzquierdoWhich Is the Better ETF, Vanguard's Mega-Cap MGK or iShares' Small-Cap IWO?Apr 8, 2026 •By Adam Levy6 Best Growth ETFs to Buy in 2026: Are They Right for Your Portfolio?Apr 8, 2026 •By Anthony Di PizioNvidia, Apple, and Alphabet Could Help This Marvelous Vanguard ETF Turn $250,000 Into $1 Million After the Stock Market Sell-OffApr 4, 2026 •By Daniel FoelberThe 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.Mar 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?About the AuthorRobert "Izzy" Izquierdo is a contributing Motley Fool stock market analyst covering information technology, consumer discretionary, consumer staples, and communication services sectors. Prior to The Motley Fool, Izzy was head of product management at Target Media Partners, developing and launching multimillion-dollar software used by businesses such as Charter Communications. Prior to that, he worked at Yahoo! and startups on software products in connected TV, AI, consumer apps, and digital advertising. He holds a bachelor’s degree in English literature from UCLA and is certified in software product management.TMFWryWriteStocks MentionedVanguard World Fund - Vanguard Mega Cap Growth ETFNYSEMKT: MGK$415.92(+1.44%)+$5.89SPDR S&P 500 ETF TrustNYSEMKT: SPY$710.19(+1.22%)+$8.53*Average returns of all recommendations since inception. Cost basis and return based on previous market day close.