MGK vs. QUAL

Last updated Jun 14, 2026

MGK (Vanguard Mega Cap Growth ETF) and QUAL (iShares MSCI USA Quality Factor ETF) are both exchange-traded funds - MGK is a Large Cap Growth Equities fund tracking the CRSP US Mega Cap Growth Index, while QUAL is a Large Cap Blend Equities fund tracking the MSCI USA Sector Neutral Quality Index. Both are passively managed. Over the past 10 years, MGK returned 18.85%/yr vs 14.46%/yr for QUAL. Their correlation of 0.90 suggests significant overlap in exposure. MGK charges 0.05%/yr vs 0.15%/yr for QUAL.

Performance

MGK vs. QUAL - Performance Comparison

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

Returns By Period

In the year-to-date period, MGK achieves a 5.33% return, which is significantly lower than QUAL's 9.44% return. Over the past 10 years, MGK has outperformed QUAL with an annualized return of 18.85%, while QUAL has yielded a comparatively lower 14.46% annualized return.

MGK

• 1D: 0.22%
• 1M: -1.87%
• YTD: 5.33%
• 6M: 6.21%
• 1Y: 24.77%
• 3Y*: 24.17%
• 5Y*: 14.87%
• 10Y*: 18.85%

QUAL

• 1D: 0.47%
• 1M: 3.07%
• YTD: 9.44%
• 6M: 9.29%
• 1Y: 22.87%
• 3Y*: 19.30%
• 5Y*: 11.97%
• 10Y*: 14.46%

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

MGK vs. QUAL - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
MGK Vanguard Mega Cap Growth ETF	5.33%	20.67%	32.94%	51.67%	-33.59%	28.58%	41.01%	37.38%	-2.91%	29.49%
QUAL iShares MSCI USA Quality Factor ETF	9.44%	12.65%	22.29%	30.88%	-20.50%	26.94%	17.04%	33.89%	-5.70%	22.26%

Correlation

The correlation between MGK and QUAL is 0.81, 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	0.81
Correlation (3Y) Calculated over the trailing 3-year period	0.87
Correlation (5Y) Calculated over the trailing 5-year period	0.90
Correlation (10Y) Calculated over the trailing 10-year period	0.89
Correlation (All Time) Calculated using the full available price history since Jul 18, 2013	0.90

The correlation between MGK and QUAL has been stable across timeframes, ranging from 0.81 to 0.90 - a consistent structural relationship.

MGK vs. QUAL - Sectors Allocation Comparison

Sectors	MGK	QUAL
Technology	56.1%	38.8%
Communication Services	17.3%	11.8%
Consumer Cyclical	12.8%	9.3%
Healthcare	4.5%	8.7%
Financial Services	4.5%	10.8%
Real Estate	1.3%	1.8%
Utilities	1.2%	2.1%
Industrials	1.1%	7.2%
Basic Materials	0.7%	1.9%
Consumer Defensive	0.4%	4.4%
Energy	-	3.2%

Return for Risk

MGK vs. QUAL — Risk / Return Rank

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

MGK

MGK Risk / Return Rank: 39
MGK Sharpe Ratio Rank: 44
MGK Sortino Ratio Rank: 42
MGK Omega Ratio Rank: 42
MGK Calmar Ratio Rank: 31
MGK Martin Ratio Rank: 35

QUAL

QUAL Risk / Return Rank: 59
QUAL Sharpe Ratio Rank: 59
QUAL Sortino Ratio Rank: 60
QUAL Omega Ratio Rank: 56
QUAL Calmar Ratio Rank: 53
QUAL Martin Ratio Rank: 67

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. QUAL - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Vanguard Mega Cap Growth ETF (MGK) and iShares MSCI USA Quality Factor ETF (QUAL). 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	QUAL	Difference
Sharpe ratio: Return per unit of total volatility	1.37	1.74	-0.36
Sortino ratio: Return per unit of downside risk	1.89	2.46	-0.57
Omega ratio: Gain probability vs. loss probability	1.24	1.31	-0.06
Calmar ratio: Return relative to maximum drawdown	1.37	2.32	-0.95
Martin ratio: Return relative to average drawdown	4.65	10.60	-5.95

MGK vs. QUAL - Sharpe Ratio Comparison

The current MGK Sharpe Ratio is 1.37, which is comparable to the QUAL Sharpe Ratio of 1.74. The chart below compares the historical Sharpe Ratios of MGK and QUAL, 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. QUAL - Drawdown Comparison

The maximum MGK drawdown since its inception was -48.43%, which is greater than QUAL's maximum drawdown of -34.06%. Use the drawdown chart below to compare losses from any high point for MGK and QUAL.

Drawdown Indicators

	MGK	QUAL	Difference
Max Drawdown Largest peak-to-trough decline	-48.43%	-34.06%	-14.37%
Max Drawdown (1Y) Largest decline over 1 year	-16.85%	-9.03%	-7.82%
Max Drawdown (3Y) Largest decline over 3 years	-23.36%	-18.00%	-5.36%
Max Drawdown (5Y) Largest decline over 5 years	-36.01%	-28.23%	-7.78%
Max Drawdown (10Y) Largest decline over 10 years	-36.01%	-34.06%	-1.95%
Current Drawdown Current decline from peak	-5.63%	-0.19%	-5.44%
Average Drawdown Average peak-to-trough decline	-7.58%	-4.10%	-3.48%
Ulcer Index Depth and duration of drawdowns from previous peaks	4.97%	1.99%	+2.98%

Volatility

MGK vs. QUAL - Volatility Comparison

Vanguard Mega Cap Growth ETF (MGK) has a higher volatility of 5.96% compared to iShares MSCI USA Quality Factor ETF (QUAL) at 3.63%. This indicates that MGK's price experiences larger fluctuations and is considered to be riskier than QUAL based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	MGK	QUAL	Difference
Volatility (1M) Calculated over the trailing 1-month period	5.96%	3.63%	+2.33%
Volatility (6M) Calculated over the trailing 6-month period	13.29%	9.43%	+3.86%
Volatility (1Y) Calculated over the trailing 1-year period	16.87%	12.10%	+4.77%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	22.72%	17.36%	+5.36%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	21.93%	18.11%	+3.82%

MGK vs. QUAL - Expense Ratio Comparison

MGK has a 0.05% expense ratio, which is lower than QUAL'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

MGK vs. QUAL - Dividend Comparison

MGK's dividend yield for the trailing twelve months is around 0.33%, less than QUAL's 0.87% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
MGK Vanguard Mega Cap Growth ETF	0.33%	0.35%	0.43%	0.50%	0.70%	0.41%	0.65%	0.85%	1.12%	1.23%	1.53%	1.43%
QUAL iShares MSCI USA Quality Factor ETF	0.87%	0.94%	1.02%	1.23%	1.59%	1.20%	1.39%	1.60%	2.00%	1.76%	1.96%	1.63%

Frequently Asked Questions

Can I hold both MGK and QUAL in my portfolio?

MGK and QUAL have a correlation of 0.81, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, MGK or QUAL?

MGK has higher volatility (5.96%) compared to QUAL (3.63%). In terms of maximum drawdown, MGK dropped -48.43% vs QUAL's -34.06%.

Which ETF is better, MGK or QUAL?

On 10-year performance, MGK leads with 18.85% vs 14.46% for QUAL. On fees, MGK is cheaper at 0.05% per year. On volatility, QUAL has been the lower-risk option at 3.63%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, MGK or QUAL?

Over the 10-year period, MGK has performed better with a 18.85% return vs 14.46%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, MGK or QUAL?

MGK is cheaper with a 0.05% expense ratio, compared with 0.15% for QUAL.

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

QUAL has the higher dividend yield at 0.87%, compared with 0.33% for MGK.

What is the main difference between MGK and QUAL?

MGK is categorized as Large Cap Growth Equities, while QUAL is Large Cap Blend Equities. MGK tracks CRSP US Mega Cap Growth Index, while QUAL tracks MSCI USA Sector Neutral Quality Index. They also come from different issuers: Vanguard and iShares. Their fees differ too: 0.05% for MGK and 0.15% for QUAL.

Which has better risk-adjusted returns?

QUAL currently has the higher Sharpe Ratio (1.74 vs 1.37), 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.