MGC vs. MTUM

Last updated Jun 4, 2026

MGC (Vanguard Mega Cap ETF) and MTUM (iShares MSCI USA Momentum Factor ETF) are both exchange-traded funds - MGC is a Large Cap Blend Equities fund tracking the CRSP US Mega Cap Index, while MTUM is a Momentum fund tracking the MSCI USA Momentum SR Variant Index. Both are passively managed. Over the past 10 years, MGC returned 16.36%/yr vs 17.31%/yr for MTUM. Their correlation of 0.86 suggests significant overlap in exposure. MGC charges 0.05%/yr vs 0.15%/yr for MTUM.

Performance

MGC vs. MTUM - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in Vanguard Mega Cap ETF (MGC) and iShares MSCI USA Momentum Factor ETF (MTUM). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, MGC achieves a 10.80% return, which is significantly lower than MTUM's 31.75% return. Over the past 10 years, MGC has underperformed MTUM with an annualized return of 16.36%, while MTUM has yielded a comparatively higher 17.31% annualized return.

MGC

• 1D: -0.79%
• 1M: 5.59%
• YTD: 10.80%
• 6M: 10.75%
• 1Y: 29.68%
• 3Y*: 23.87%
• 5Y*: 14.70%
• 10Y*: 16.36%

MTUM

• 1D: 1.06%
• 1M: 15.90%
• YTD: 31.75%
• 6M: 32.38%
• 1Y: 41.76%
• 3Y*: 34.75%
• 5Y*: 15.21%
• 10Y*: 17.31%

*Multi-year figures are annualized to reflect compound growth (CAGR)

MGC vs. MTUM - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
MGC Vanguard Mega Cap ETF	10.80%	19.31%	27.16%	29.77%	-19.95%	27.58%	21.57%	31.14%	-3.45%	22.61%
MTUM iShares MSCI USA Momentum Factor ETF	31.75%	22.15%	32.89%	9.15%	-18.27%	13.36%	29.86%	27.25%	-1.67%	37.50%

Correlation

The correlation between MGC and MTUM is 0.83, indicating a strong positive relationship between their price movements. Combining them offers limited diversification - they tend to fall together during downturns.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	0.83
Correlation (3Y) Calculated over the trailing 3-year period	0.88
Correlation (5Y) Calculated over the trailing 5-year period	0.86
Correlation (10Y) Calculated over the trailing 10-year period	0.86
Correlation (All Time) Calculated using the full available price history since Apr 19, 2013	0.86

The correlation between MGC and MTUM has been stable across timeframes, ranging from 0.83 to 0.88 - a consistent structural relationship.

MGC vs. MTUM - Sectors Allocation Comparison

Sectors	MGC	MTUM
Technology	39.3%	44.4%
Communication Services	13.1%	7.4%
Financial Services	11.7%	10.4%
Consumer Cyclical	10.1%	3.6%
Healthcare	8.9%	6.9%
Industrials	6.5%	15.6%
Consumer Defensive	4.8%	3.3%
Energy	2.6%	3.5%
Basic Materials	1.2%	1.7%
Utilities	1.0%	1.6%
Real Estate	1.0%	1.8%

Return for Risk

MGC vs. MTUM — Risk / Return Rank

Compare risk-adjusted metric ranks to identify better-performing investments over the past 12 months.

MGC

MGC Risk / Return Rank: 69
MGC Sharpe Ratio Rank: 73
MGC Sortino Ratio Rank: 71
MGC Omega Ratio Rank: 71
MGC Calmar Ratio Rank: 60
MGC Martin Ratio Rank: 71

MTUM

MTUM Risk / Return Rank: 67
MTUM Sharpe Ratio Rank: 64
MTUM Sortino Ratio Rank: 62
MTUM Omega Ratio Rank: 63
MTUM Calmar Ratio Rank: 71
MTUM Martin Ratio Rank: 75

The rank (0–100) shows how this investment's returns compare to the risk taken. Higher = better. Based on the past 12 months of data, combining Sharpe, Sortino, and other metrics used by quantitative funds and institutional investors.

MGC vs. MTUM - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Vanguard Mega Cap ETF (MGC) and iShares MSCI USA Momentum Factor ETF (MTUM). Risk-adjusted metrics are performance indicators that assess an investment's returns in relation to its risk, enabling a more accurate comparison of different investment options.

	MGC	MTUM	Difference
Sharpe ratio Return per unit of total volatility	2.42	2.20	+0.22
Sortino ratio Return per unit of downside risk	3.30	2.98	+0.32
Omega ratio Gain probability vs. loss probability	1.43	1.39	+0.04
Calmar ratio Return relative to maximum drawdown	3.03	3.64	-0.61
Martin ratio Return relative to average drawdown	13.61	14.50	-0.89
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month.

MGC vs. MTUM - Sharpe Ratio Comparison

The current MGC Sharpe Ratio is 2.42, which is comparable to the MTUM Sharpe Ratio of 2.20. The chart below compares the historical Sharpe Ratios of MGC and MTUM, calculated using daily returns over the previous 12 months. A higher Sharpe Ratio indicates better risk-adjusted performance relative to the risk-free rate.

Sharpe Ratios by Period

	MGC	MTUM	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	2.42	2.20	+0.22
Sharpe Ratio (5Y) Calculated over the trailing 5-year period	0.86	0.74	+0.11
Sharpe Ratio (10Y) Calculated over the trailing 10-year period	0.90	0.83	+0.08
Sharpe Ratio (All Time) Calculated using the full available price history	0.60	0.85	-0.25

Drawdowns

MGC vs. MTUM - Drawdown Comparison

The maximum MGC drawdown since its inception was -51.93%, which is greater than MTUM's maximum drawdown of -34.08%. Use the drawdown chart below to compare losses from any high point for MGC and MTUM.

Drawdown Indicators

	MGC	MTUM	Difference
Max Drawdown Largest peak-to-trough decline	-51.93%	-34.08%	-17.85%
Max Drawdown (1Y) Largest decline over 1 year	-9.85%	-11.54%	+1.69%
Max Drawdown (3Y) Largest decline over 3 years	-19.28%	-20.99%	+1.71%
Max Drawdown (5Y) Largest decline over 5 years	-25.74%	-32.28%	+6.54%
Max Drawdown (10Y) Largest decline over 10 years	-33.07%	-34.08%	+1.01%
Current Drawdown Current decline from peak	-0.79%	0.00%	-0.79%
Average Drawdown Average peak-to-trough decline	-7.06%	-6.21%	-0.85%
Ulcer Index Depth and duration of drawdowns from previous peaks	2.19%	2.89%	-0.70%

Volatility

MGC vs. MTUM - Volatility Comparison

The current volatility for Vanguard Mega Cap ETF (MGC) is 3.04%, while iShares MSCI USA Momentum Factor ETF (MTUM) has a volatility of 7.68%. This indicates that MGC experiences smaller price fluctuations and is considered to be less risky than MTUM based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	MGC	MTUM	Difference
Volatility (1M) Calculated over the trailing 1-month period	3.04%	7.68%	-4.64%
Volatility (6M) Calculated over the trailing 6-month period	9.27%	16.46%	-7.19%
Volatility (1Y) Calculated over the trailing 1-year period	12.32%	19.04%	-6.72%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	17.27%	20.60%	-3.33%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	18.21%	21.03%	-2.82%

MGC vs. MTUM - Expense Ratio Comparison

MGC has a 0.05% expense ratio, which is lower than MTUM's 0.15% expense ratio. Despite the difference, both funds are considered low-cost compared to the broader market, where average expense ratios usually range from 0.3% to 0.9%.

Dividends

MGC vs. MTUM - Dividend Comparison

MGC's dividend yield for the trailing twelve months is around 0.87%, more than MTUM's 0.60% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
MGC Vanguard Mega Cap ETF	0.87%	0.93%	1.15%	1.35%	1.65%	1.17%	1.45%	1.81%	2.10%	1.83%	2.14%	2.11%
MTUM iShares MSCI USA Momentum Factor ETF	0.60%	0.91%	0.75%	1.35%	1.80%	0.55%	0.83%	1.48%	1.27%	1.02%	1.43%	1.12%

Frequently Asked Questions

Can I hold both MGC and MTUM in my portfolio?

MGC and MTUM have a correlation of 0.83, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, MGC or MTUM?

MTUM has higher volatility (7.68%) compared to MGC (3.04%). In terms of maximum drawdown, MGC dropped -51.93% vs MTUM's -34.08%.

Which ETF is better, MGC or MTUM?

On 10-year performance, MTUM leads with 17.31% vs 16.36% for MGC. On fees, MGC is cheaper at 0.05% per year. On volatility, MGC has been the lower-risk option at 3.04%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, MGC or MTUM?

Over the 10-year period, MTUM has performed better with a 17.31% return vs 16.36%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, MGC or MTUM?

MGC is cheaper with a 0.05% expense ratio, compared with 0.15% for MTUM.

Which ETF pays a higher dividend yield, MGC or MTUM?

MGC has the higher dividend yield at 0.87%, compared with 0.60% for MTUM.

What is the main difference between MGC and MTUM?

MGC is categorized as Large Cap Blend Equities, while MTUM is Momentum. MGC tracks CRSP US Mega Cap Index, while MTUM tracks MSCI USA Momentum SR Variant Index. They also come from different issuers: Vanguard and iShares. Their fees differ too: 0.05% for MGC and 0.15% for MTUM.

Which has better risk-adjusted returns?

MGC currently has the higher Sharpe Ratio (2.42 vs 2.20), meaning it's delivered slightly more return per unit of risk over the trailing 12 months. However, this ranking shifts over time - use the Risk/Return Score above for a more comprehensive view that combines Sharpe, Sortino, and other measures used by quantitative funds.