Skip to navigationSkip to main contentSkip to right columnADVERTISEMENTAndy Gould, The Motley FoolSat, June 13, 2026 at 1:15 PM GMT+2 4 min readThe Vanguard Mega Cap Growth ETF (NYSEMKT:MGK) provides lower-cost exposure to established company giants, while the iShares Russell 2000 Growth ETF (NYSEMKT:IWO) offers a more expensive path to high-potential small-cap firms.Growth-focused investors often debate whether to prioritize the massive, proven earnings of megacaps or the more nimble growth potential of small caps. This comparison examines the performance, cost, and composition of two popular ETFs that capture these distinct market segments.Snapshot (cost & size)MetricMGKIWOIssuerVanguardiSharesExpense ratio0.05%0.24%1-year return (as of June 12, 2026)23.04%36.25%Dividend yield0.31%0.40%Beta1.231.46AUM$35.0 billion$14.7 billionBeta measures price volatility relative to the S&P 500; beta is calculated from five-year monthly returns. The 1-year return represents total return over the trailing 12 months. Dividend yield is the trailing-12-month distribution yield.MGK is the less expensive option for long-term holders with its 0.05% expense ratio, compared to IWO’s 0.24%. IWO provides a slightly higher dividend yield of 0.40%, compared to MGK’s 0.30%.Performance & risk comparisonMetricMGKIWOMax drawdown (5 yr)(36.02%)(42.02%)Growth of $1,000 over 5 years (total return)$1,951$1,239What's insideThe iShares Russell 2000 Growth ETF (NYSEMKT:IWO) targets smaller companies showing strong growth characteristics, holding more than 1,000 positions. Its largest sector allocations are Technology at 26%, Industrials at 23%, and Healthcare at 22%. Its largest positions include Bloom Energy Class A (NYSE:BE) at 3.5%, Credo Technology Group (NASDAQ:CRDO) at 2.1%, and Sterling Infrastructure (NASDAQ:STRL) at 1.4%. The fund launched in 2000 and pays a 0.40% dividend yield.The Vanguard Mega Cap Growth ETF (NYSEMKT:MGK) provides exposure to 59 mega-cap holdings and tracks the CRSP U.S. Mega Cap Growth Index. The portfolio’s largest sector weightings include Technology at 56%, Communication Services at 18%, and Consumer Cyclical at 13%. Its top holdings include Nvidia (NASDAQ:NVDA) at 13.8%, Apple (NASDAQ:AAPL) at 11.8%, and Microsoft (NASDAQ:MSFT) at 8.7%. The fund launched in 2007 and pays a 0.31% dividend yield.For more guidance on ETF investing, check out the full guide at this link.What This Means for InvestorsChoosing between MGK and IWO ultimately comes down to how much volatility you can handle -- and where you think the next phase of growth will take place.MGK is built around companies that have defined the current bull market, such as Nvidia, Apple, and Microsoft. These are businesses with dominant market positions, deep cash flows, and the resources to invest heavily in the AI infrastructure build-out that continues to drive the tech sector forward. At just 0.05% in annual expenses, you're getting exposure to that growth story at an exceptionally low cost -- a meaningful advantage for long-term, buy-and-hold investors who don't want fees eating into their returns. The tradeoff is concentration: more than half the fund sits in tech, which means you're heavily exposed to sentiment shifts around that one sector.Terms and Privacy PolicyPrivacy & Cookie SettingsMore Info