MGK vs. QQQ

Last updated Jun 21, 2026

MGK (Vanguard Mega Cap Growth ETF) and QQQ (Invesco QQQ ETF) are both exchange-traded funds - MGK is a Large Cap Growth Equities fund tracking the CRSP US Mega Cap Growth Index, while QQQ is a Nasdaq-100 fund tracking the NASDAQ-100 Index. Both are passively managed. Over the past 10 years, MGK returned 19.09%/yr vs 22.17%/yr for QQQ. With a 0.96 correlation, they move nearly in lockstep. MGK charges 0.05%/yr vs 0.18%/yr for QQQ.

Performance

MGK vs. QQQ - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in Vanguard Mega Cap Growth ETF (MGK) and Invesco QQQ ETF (QQQ). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, MGK achieves a 7.38% return, which is significantly lower than QQQ's 20.71% return. Over the past 10 years, MGK has underperformed QQQ with an annualized return of 19.09%, while QQQ has yielded a comparatively higher 22.17% annualized return.

MGK

• 1D: 1.76%
• 1M: -0.25%
• YTD: 7.38%
• 6M: 7.42%
• 1Y: 27.67%
• 3Y*: 24.43%
• 5Y*: 15.20%
• 10Y*: 19.09%

QQQ

• 1D: 2.51%
• 1M: 3.65%
• YTD: 20.71%
• 6M: 20.33%
• 1Y: 41.26%
• 3Y*: 27.01%
• 5Y*: 17.37%
• 10Y*: 22.17%

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

MGK vs. QQQ - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
MGK Vanguard Mega Cap Growth ETF	7.38%	20.67%	32.94%	51.67%	-33.59%	28.58%	41.01%	37.38%	-2.91%	29.49%
QQQ Invesco QQQ ETF	20.71%	20.77%	25.58%	54.86%	-32.58%	27.42%	48.62%	38.96%	-0.13%	32.66%

Correlation

The correlation between MGK and QQQ is 0.95 - these two move nearly in lockstep. At this level, holding both provides almost no diversification benefit. If you already own one, adding the other does little to reduce portfolio risk.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	0.95
Correlation (3Y) Calculated over the trailing 3-year period	0.97
Correlation (5Y) Calculated over the trailing 5-year period	0.98
Correlation (10Y) Calculated over the trailing 10-year period	0.98
Correlation (All Time) Calculated using the full available price history since Dec 27, 2007	0.96

The correlation between MGK and QQQ has been stable across timeframes, ranging from 0.95 to 0.98 - a consistent structural relationship.

MGK vs. QQQ - Sectors Allocation Comparison

Sectors	MGK	QQQ
Technology	59.0%	58.7%
Communication Services	15.8%	14.3%
Consumer Cyclical	12.2%	11.4%
Healthcare	4.6%	3.7%
Financial Services	4.1%	0.2%
Real Estate	1.1%	0.1%
Utilities	1.0%	1.2%
Industrials	1.0%	2.6%
Basic Materials	0.6%	1.0%
Consumer Defensive	0.4%	6.4%
Energy	-	0.5%

Return for Risk

MGK vs. QQQ — Risk / Return Rank

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

MGK

MGK Risk / Return Rank: 41
MGK Sharpe Ratio Rank: 47
MGK Sortino Ratio Rank: 45
MGK Omega Ratio Rank: 45
MGK Calmar Ratio Rank: 33
MGK Martin Ratio Rank: 37

QQQ

QQQ Risk / Return Rank: 73
QQQ Sharpe Ratio Rank: 77
QQQ Sortino Ratio Rank: 71
QQQ Omega Ratio Rank: 73
QQQ Calmar Ratio Rank: 71
QQQ Martin Ratio Rank: 72

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.

MGK vs. QQQ - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Vanguard Mega Cap Growth ETF (MGK) and Invesco QQQ ETF (QQQ). 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.

Values are calculated on a 1-year rolling basis and updated daily. Risk-adjusted metrics are more stable over longer periods — use the period switch above to explore them.

	MGK	QQQ	Difference
Sharpe ratio: Return per unit of total volatility	1.58	2.32	-0.74
Sortino ratio: Return per unit of downside risk	2.16	3.01	-0.86
Omega ratio: Gain probability vs. loss probability	1.28	1.41	-0.13
Calmar ratio: Return relative to maximum drawdown	1.61	3.42	-1.81
Martin ratio: Return relative to average drawdown	5.41	12.72	-7.31

MGK vs. QQQ - Sharpe Ratio Comparison

The current MGK Sharpe Ratio is 1.58, which is lower than the QQQ Sharpe Ratio of 2.32. The chart below compares the historical Sharpe Ratios of MGK and QQQ, calculated using daily returns over the previous 12 months. A higher Sharpe Ratio indicates better risk-adjusted performance relative to the risk-free rate.

Drawdowns

MGK vs. QQQ - Drawdown Comparison

The maximum MGK drawdown since its inception was -48.43%, smaller than the maximum QQQ drawdown of -82.97%. Use the drawdown chart below to compare losses from any high point for MGK and QQQ.

Drawdown Indicators

	MGK	QQQ	Difference
Max Drawdown Largest peak-to-trough decline	-48.43%	-82.97%	+34.54%
Max Drawdown (1Y) Largest decline over 1 year	-16.85%	-11.96%	-4.89%
Max Drawdown (3Y) Largest decline over 3 years	-23.36%	-22.77%	-0.59%
Max Drawdown (5Y) Largest decline over 5 years	-36.01%	-35.12%	-0.89%
Max Drawdown (10Y) Largest decline over 10 years	-36.01%	-35.12%	-0.89%
Current Drawdown Current decline from peak	-3.79%	-0.74%	-3.05%
Average Drawdown Average peak-to-trough decline	-7.58%	-32.73%	+25.15%
Ulcer Index Depth and duration of drawdowns from previous peaks	4.99%	3.21%	+1.78%

Volatility

MGK vs. QQQ - Volatility Comparison

The current volatility for Vanguard Mega Cap Growth ETF (MGK) is 6.78%, while Invesco QQQ ETF (QQQ) has a volatility of 8.58%. This indicates that MGK experiences smaller price fluctuations and is considered to be less risky than QQQ based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	MGK	QQQ	Difference
Volatility (1M) Calculated over the trailing 1-month period	6.78%	8.58%	-1.80%
Volatility (6M) Calculated over the trailing 6-month period	13.69%	14.34%	-0.65%
Volatility (1Y) Calculated over the trailing 1-year period	17.14%	17.64%	-0.50%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	22.77%	22.63%	+0.14%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	21.96%	22.42%	-0.46%

MGK vs. QQQ - Expense Ratio Comparison

MGK has a 0.05% expense ratio, which is lower than QQQ's 0.18% 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

MGK vs. QQQ - Dividend Comparison

MGK's dividend yield for the trailing twelve months is around 0.32%, less than QQQ's 0.38% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
MGK Vanguard Mega Cap Growth ETF	0.32%	0.35%	0.43%	0.50%	0.70%	0.41%	0.65%	0.85%	1.12%	1.23%	1.53%	1.43%
QQQ Invesco QQQ ETF	0.38%	0.45%	0.56%	0.62%	0.80%	0.43%	0.55%	0.74%	0.91%	0.84%	1.06%	0.99%

Frequently Asked Questions

Can I hold both MGK and QQQ in my portfolio?

With a correlation of 0.95, MGK and QQQ move almost identically. Holding both adds very little diversification - you're essentially doubling your position in the same market segment. Choosing one is usually more capital-efficient.

Which is riskier, MGK or QQQ?

QQQ has higher volatility (8.58%) compared to MGK (6.78%). In terms of maximum drawdown, MGK dropped -48.43% vs QQQ's -82.97%.

Which ETF is better, MGK or QQQ?

On 10-year performance, QQQ leads with 22.17% vs 19.09% for MGK. On fees, MGK is cheaper at 0.05% per year. On volatility, MGK has been the lower-risk option at 6.78%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, MGK or QQQ?

Over the 10-year period, QQQ has performed better with a 22.17% return vs 19.09%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, MGK or QQQ?

MGK is cheaper with a 0.05% expense ratio, compared with 0.18% for QQQ.

Which ETF pays a higher dividend yield, MGK or QQQ?

QQQ has the higher dividend yield at 0.38%, compared with 0.32% for MGK.

What is the main difference between MGK and QQQ?

MGK is categorized as Large Cap Growth Equities, while QQQ is Nasdaq-100. MGK tracks CRSP US Mega Cap Growth Index, while QQQ tracks NASDAQ-100 Index. They also come from different issuers: Vanguard and Invesco. Their fees differ too: 0.05% for MGK and 0.18% for QQQ.

Which has better risk-adjusted returns?

QQQ currently has the higher Sharpe Ratio (2.32 vs 1.58), 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.