MGK vs QQQ: Which ETF Is Better in 2026?
A metric-by-metric comparison of Vanguard Mega Cap Growth Index Fund (MGK) and Invesco QQQ Trust (QQQ) — both US Large Cap Growth funds — using ETFValuer's daily-updated rankings.
Educational content — not financial advice. Data as of July 29, 2026. ~5 minute read.
The Verdict
MGK and QQQ compete directly — both are US Large Cap Growth funds chasing the same job in a portfolio. That makes this a genuine either/or: the index each tracks, what it costs, and how it has handled drawdowns are what separate them, not the broad exposure they give you.
On ETFValuer's overall model — which blends return, risk-adjusted performance, cost, drawdown, size and volatility — QQQ scores higher: 67.4 (Grade B) versus 59.9 for MGK. That doesn't make MGK a bad fund; it means QQQ currently edges it out on this specific mix of factors. Read the metric-by-metric breakdown below before deciding which matters more for your own portfolio.
Head-to-Head: Every Metric
| MGK | QQQ | |
|---|---|---|
| Category | US Large Cap Growth | US Large Cap Growth |
| Expense ratio | 0.05% | 0.18% |
| Fund size (AUM) | $33.3B | $490.1B |
| Dividend yield | 0.33% | 0.26% |
| 1-year return | +11.68% | +19.84% |
| 3-year return | +80.45% | +83.57% |
| Volatility | 17.96% | 18.99% |
| Max drawdown | -23.36% | -22.77% |
| Sharpe ratio | 0.37 | 0.78 |
| ETFValuer score | 59.9 | 67.4 |
| Grade | C | B |
| Overall rank | #251 | #142 |
Bold marks the better value in each row. "Better" is directional only (e.g. lower cost, higher return) — it isn't a recommendation by itself. See the full methodology.
Cost
MGK is the cheaper fund, charging 0.05% a year versus 0.18% for QQQ — a gap of 0.13 percentage points (about $13.00/year on a $10,000 position) that compounds meaningfully over a multi-decade holding period. See the ETF Fee Calculator for the exact dollar impact at your investment size and horizon.
What QQQ's Fees Cost You
QQQ charges an expense ratio of 0.18% a year, deducted automatically from the fund's value. Small percentages compound into real money — adjust the figures below to see the impact on your own numbers.
Assumes a constant gross return and no additional contributions — a simplification, but it isolates exactly what the expense ratio costs. Try the full fee calculator to model contributions and compare any two funds.
Performance & Risk
Over the trailing 3 years, QQQ returned +83.57% versus +80.45% for MGK — a gap of about 3.1 percentage points. On risk, QQQ has held up better historically, with a shallower max drawdown (-22.77% vs. -23.36%). QQQ currently has the better risk-adjusted return (Sharpe ratio of 0.78 vs. 0.37), meaning it delivered more return per unit of volatility taken on.
How Closely Do They Track Each Other?
Over the last 3.0 years of daily returns (750 shared trading days), MGK and QQQ show a extremely high correlation of 0.973 — very close substitutes. Holding both would add very little diversification: when one falls, the other almost always falls with it. Treat these as alternatives to each other, not as complements in the same portfolio.
| Measure | Value | What it means |
|---|---|---|
| Daily return correlation | 0.973 | Extremely high — very close substitutes |
| R-squared | 94.6% | 94.6% of MGK's daily moves are explained by QQQ's |
| Tracking error (annualised) | 4.75% | Typical yearly spread between the two funds' returns |
| Annualised return over 3.0y | MGK +20.98% · QQQ +21.68% | QQQ ahead by 0.71 points a year |
Correlation alone understates how far these can drift. Across every rolling 12-month window in the period, MGK finished as much as +7.8 points ahead of QQQ at the best extreme and -15.1 points at the worst — a 22.9-point spread between the best and worst year of relative performance. Two funds can correlate tightly day to day and still deliver very different outcomes over any single year you happen to hold them.
Calculated from daily total returns over the trailing 3-year window, recomputed every day this site refreshes. Correlation of 1.00 means the two funds moved in lockstep; 0.00 means their daily moves were unrelated.
Holdings Overlap
MGK and QQQ hold 8 of the same companies among their top 10 positions. Those shared names make up 62.6% of MGK and 43.4% of QQQ. That's heavy duplication — owning both largely doubles down on the same companies rather than spreading risk. Most investors should pick one.
| Shared Holding | MGK Weight | QQQ Weight |
|---|---|---|
| NVIDIA Corp | 13.75% | 8.68% |
| Apple Inc | 12.60% | 7.63% |
| Alphabet Inc | 9.88% | 6.63% |
| Microsoft Corp | 9.01% | 5.63% |
| Amazon.com Inc | 4.59% | 4.58% |
| Tesla Inc | 4.18% | 3.80% |
| Meta Platforms Inc | 4.17% | 3.46% |
| Broadcom Inc | 4.40% | 3.01% |
Compares the top 10 reported holdings from each fund's most recent SEC N-PORT-P filing, so it understates total overlap — funds tracking similar indexes overlap far more deeply than the top 10 alone can show. Search any company across all tracked funds with the Stock Overlap tool.
Which One Should You Pick?
Lean MGK if…
- You want the lower running cost — 0.05% vs 0.18%, about $13 a year less on a $10,000 position
- Current income matters to you — it yields 0.33% against 0.26%
Lean QQQ if…
- You care about return per unit of risk — its Sharpe ratio of 0.78 beats 0.37
- You weight recent results heavily — it returned 83.6% over 3 years against 80.5%
- You want the deeper, more liquid market ($490B in assets vs $33B)
Whichever you pick, holding both at full weight is usually the wrong answer — see the overlap and correlation sections above.
Frequently Asked Questions
Is MGK or QQQ better?
On ETFValuer's overall model — which blends return, risk-adjusted performance, cost, drawdown, size and volatility — QQQ scores higher: 67.4 (Grade B) versus 59.9 for MGK. That doesn't make MGK a bad fund; it means QQQ currently edges it out on this specific mix of factors. Read the metric-by-metric breakdown below before deciding which matters more for your own portfolio.
Which has the lower expense ratio, MGK or QQQ?
MGK currently has the lower expense ratio (0.05% vs. 0.18%).
Can I hold both MGK and QQQ?
You can, but there's little point. MGK and QQQ have a daily return correlation of 0.97 over the past 3.0 years, meaning they move almost in lockstep. Holding both roughly doubles a single bet rather than spreading it — pick whichever wins on cost and liquidity and put the money in one place.
Go deeper on either fund
Full daily-updated metrics, holdings context, and category peers.