QQQ prices the next expense ratio however gives higher liquidity and an extended monitor report than MGK.
Each funds delivered related 1-year and 5-year returns, although QQQ is extra diversified by variety of holdings and sector combine.
QQQ pays a barely increased dividend yield, with each funds closely weighted towards know-how.
These 10 shares may mint the subsequent wave of millionaires ›
The Vanguard Mega Cap Development ETF (NYSEMKT:MGK) and Invesco QQQ Belief, Sequence 1 (NASDAQ:QQQ) each goal large-cap U.S. progress shares, however QQQ stands out for its deeper liquidity, broader sector attain, and barely increased yield, whereas MGK retains prices decrease.
MGK tracks the CRSP U.S. Mega Cap Development Index, specializing in the most important progress names. QQQ, against this, tracks the NASDAQ-100, overlaying 101 of the most important non-financial corporations on the Nasdaq change. This match-up compares efficiency, value, threat, and portfolio development.
Metric | MGK | QQQ |
|---|
Issuer | Vanguard | Invesco |
Expense ratio | 0.07% | 0.20% |
1-yr return (as of Dec. 14, 2025) | 15.8% | 15.7% |
Dividend yield | 0.37% | 0.46% |
Beta (5Y month-to-month) | 1.24 | 1.19 |
AUM | $32.7 billion | $403.0 billion |
Beta measures value volatility relative to the S&P 500. The 1-yr return represents complete return over the trailing 12 months.
MGK is extra reasonably priced on charges with a decrease expense ratio, whereas QQQ pays a barely increased dividend yield. MGK could enchantment to fee-conscious buyers, whereas QQQ can have an edge for these looking for extra earnings from a growth-focused ETF.
Metric | MGK | QQQ |
|---|
Max drawdown (5 y) | -36.02% | -35.12% |
Development of $1,000 over 5 years | $2,083 | $2,033 |
QQQ incorporates 101 holdings, round 54% of that are allotted to the know-how sector. Its second- and third-largest sector allocations embrace communication companies (17% of belongings) and shopper cyclical (13%), respectively.
Its prime positions are Nvidia, making up roughly 9% of the fund, Apple at 9%, and Microsoft at 8%. With no distinctive quirks or leverage, QQQ goals for broad illustration of the NASDAQ-100.
MGK, in distinction, is extra concentrated in know-how (58%), with communication companies (15%) and shopper cyclical (12%) as secondary allocations.
Its prime holdings are Nvidia at 14%, Apple at 12%, and Microsoft at 12%, reflecting a heavier tilt towards the largest tech leaders. MGK holds 66 shares, providing a narrower slice of the large-cap progress universe.
For extra steerage on ETF investing, take a look at the complete information at this hyperlink.
QQQ and MKG each goal to supply publicity to the most important progress shares, with an emphasis on the tech business. QQQ, nevertheless, gives a broader portfolio with higher diversification, whereas MGK zeros in on the most important of the large-caps.
MGK focuses on mega-cap progress funds. Mega-cap shares are typically outlined as corporations with a market capitalization of at the least $200 billion, which is considerably bigger than the large-cap cutoff of $10 billion.
This narrower focus may be a bonus when mega-caps are thriving, as we have seen the previous few years with corporations like Nvidia experiencing explosive progress. Nevertheless, with fewer holdings and a bigger portion of its portfolio allotted to only a handful of shares, MGK can also be at higher threat of volatility if these shares expertise a decline.
QQQ is a broader fund, encompassing each mega-cap and barely smaller large-cap progress shares. Whereas its prime sectors and holdings align with MGK’s, it is not as closely weighted towards these segments of the market. QQQ’s prime three holdings make up 25.57% of the fund’s complete belongings, in comparison with MGK’s 38.26% allocation to its prime three shares.
That further diversification might help restrict QQQ’s threat, as seen with its barely decrease beta and milder max drawdown in comparison with MGK.
Buyers looking for a decrease expense ratio and extra focused entry to mega-cap shares could discover MGK preferable, whereas these looking for barely extra diversification inside a progress fund could go for QQQ.
ETF: Change-traded fund; a fund that trades on inventory exchanges like a inventory, holding a basket of belongings.
Expense ratio: The annual payment, as a share of belongings, {that a} fund prices to cowl working prices.
Liquidity: How simply an asset or fund may be purchased or offered with out affecting its value.
Dividend yield: Annual dividends paid by a fund or inventory, expressed as a share of its present value.
Beta: A measure of an funding’s volatility in comparison with the general market, usually the S&P 500.
AUM: Belongings underneath administration; the full market worth of belongings a fund manages for buyers.
Max drawdown: The biggest share drop from a fund’s peak worth to its lowest level over a selected interval.
Development of $1,000 over 5 years: How a lot a $1,000 funding would have grown within the fund over 5 years, together with returns.
Sector allocation: The distribution of a fund’s investments throughout totally different industries or sectors.
Shopper cyclicals: Corporations whose efficiency tends to comply with the financial cycle, similar to retailers and automakers.
Portfolio development: The method of choosing and weighting belongings inside a fund to attain particular funding objectives.
NASDAQ-100: An index of the 100 largest non-financial corporations listed on the Nasdaq inventory change.
Ever really feel such as you missed the boat in shopping for essentially the most profitable shares? Then you definately’ll need to hear this.
On uncommon events, our knowledgeable group of analysts points a “Double Down” inventory suggestion for corporations that they assume are about to pop. If you happen to’re frightened you’ve already missed your likelihood to speculate, now could be one of the best time to purchase earlier than it’s too late. And the numbers communicate for themselves:
Nvidia: if you happen to invested $1,000 after we doubled down in 2009, you’d have $453,954!*
Apple: if you happen to invested $1,000 after we doubled down in 2008, you’d have $52,940!*
Netflix: if you happen to invested $1,000 after we doubled down in 2004, you’d have $513,353!*
Proper now, we’re issuing “Double Down” alerts for 3 unbelievable corporations, obtainable whenever you be a part of Inventory Advisor, and there is probably not one other likelihood like this anytime quickly.
See the three shares »
*Inventory Advisor returns as of December 8, 2025
Katie Brockman has no place in any of the shares talked about. The Motley Idiot has positions in and recommends Apple, Microsoft, and Nvidia. The Motley Idiot recommends the next choices: lengthy January 2026 $395 calls on Microsoft and brief January 2026 $405 calls on Microsoft. The Motley Idiot has a disclosure coverage.
QQQ vs. MGK: Which Tech-Centered ETF Delivers Stronger Development for Buyers? was initially printed by The Motley Idiot
