VEA vs. MGK

Last updated Jun 14, 2026

VEA (Vanguard FTSE Developed Markets ETF) and MGK (Vanguard Mega Cap Growth ETF) are both exchange-traded funds - VEA is a Foreign Large Cap Equities fund tracking the FTSE Developed All Cap ex US Index, while MGK is a Large Cap Growth Equities fund tracking the CRSP US Mega Cap Growth Index. Both are passively managed. Over the past 10 years, VEA returned 10.72%/yr vs 18.85%/yr for MGK. A 0.75 correlation means they provide meaningful diversification when combined. VEA charges 0.03%/yr vs 0.05%/yr for MGK.

Performance

VEA vs. MGK - Performance Comparison

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

Returns By Period

In the year-to-date period, VEA achieves a 14.73% return, which is significantly higher than MGK's 5.33% return. Over the past 10 years, VEA has underperformed MGK with an annualized return of 10.72%, while MGK has yielded a comparatively higher 18.85% annualized return.

VEA

• 1D: 0.34%
• 1M: 3.58%
• YTD: 14.73%
• 6M: 16.65%
• 1Y: 31.41%
• 3Y*: 19.03%
• 5Y*: 9.51%
• 10Y*: 10.72%

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%

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

VEA vs. MGK - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
VEA Vanguard FTSE Developed Markets ETF	14.73%	35.16%	3.15%	17.93%	-15.34%	11.66%	9.71%	22.62%	-14.75%	26.42%
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%

Correlation

The correlation between VEA and MGK is 0.67, which is moderate. They share some common price drivers but move independently often enough to provide real diversification benefit when combined.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	0.67
Correlation (3Y) Calculated over the trailing 3-year period	0.61
Correlation (5Y) Calculated over the trailing 5-year period	0.67
Correlation (10Y) Calculated over the trailing 10-year period	0.69
Correlation (All Time) Calculated using the full available price history since Dec 27, 2007	0.75

The correlation between VEA and MGK shifts across timeframes, from 0.61 (3 years) to 0.75 (all time), reflecting how their relationship changes across market environments.

VEA vs. MGK - Sectors Allocation Comparison

Sectors	VEA	MGK
Financial Services	23.3%	4.5%
Industrials	19.2%	1.1%
Technology	13.8%	56.1%
Healthcare	8.2%	4.5%
Basic Materials	7.5%	0.7%
Consumer Cyclical	7.5%	12.8%
Consumer Defensive	5.6%	0.4%
Energy	5.4%	-
Communication Services	3.4%	17.3%
Utilities	3.3%	1.2%
Real Estate	2.7%	1.3%

Return for Risk

VEA vs. MGK — Risk / Return Rank

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

VEA

VEA Risk / Return Rank: 62
VEA Sharpe Ratio Rank: 63
VEA Sortino Ratio Rank: 62
VEA Omega Ratio Rank: 63
VEA Calmar Ratio Rank: 59
VEA Martin Ratio Rank: 63

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

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.

VEA vs. MGK - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Vanguard FTSE Developed Markets ETF (VEA) and Vanguard Mega Cap Growth ETF (MGK). 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.

	VEA	MGK	Difference
Sharpe ratio: Return per unit of total volatility	1.81	1.37	+0.44
Sortino ratio: Return per unit of downside risk	2.50	1.89	+0.61
Omega ratio: Gain probability vs. loss probability	1.33	1.24	+0.09
Calmar ratio: Return relative to maximum drawdown	2.58	1.37	+1.20
Martin ratio: Return relative to average drawdown	9.92	4.65	+5.27

VEA vs. MGK - Sharpe Ratio Comparison

The current VEA Sharpe Ratio is 1.81, which is higher than the MGK Sharpe Ratio of 1.37. The chart below compares the historical Sharpe Ratios of VEA and MGK, 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

VEA vs. MGK - Drawdown Comparison

The maximum VEA drawdown since its inception was -60.68%, which is greater than MGK's maximum drawdown of -48.43%. Use the drawdown chart below to compare losses from any high point for VEA and MGK.

Drawdown Indicators

	VEA	MGK	Difference
Max Drawdown Largest peak-to-trough decline	-60.68%	-48.43%	-12.25%
Max Drawdown (1Y) Largest decline over 1 year	-11.63%	-16.85%	+5.22%
Max Drawdown (3Y) Largest decline over 3 years	-13.45%	-23.36%	+9.91%
Max Drawdown (5Y) Largest decline over 5 years	-29.71%	-36.01%	+6.30%
Max Drawdown (10Y) Largest decline over 10 years	-35.73%	-36.01%	+0.28%
Current Drawdown Current decline from peak	-1.06%	-5.63%	+4.57%
Average Drawdown Average peak-to-trough decline	-13.28%	-7.58%	-5.70%
Ulcer Index Depth and duration of drawdowns from previous peaks	3.02%	4.97%	-1.95%

Volatility

VEA vs. MGK - Volatility Comparison

Vanguard FTSE Developed Markets ETF (VEA) has a higher volatility of 6.84% compared to Vanguard Mega Cap Growth ETF (MGK) at 5.96%. This indicates that VEA's price experiences larger fluctuations and is considered to be riskier than MGK based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	VEA	MGK	Difference
Volatility (1M) Calculated over the trailing 1-month period	6.84%	5.96%	+0.88%
Volatility (6M) Calculated over the trailing 6-month period	14.38%	13.29%	+1.09%
Volatility (1Y) Calculated over the trailing 1-year period	16.58%	16.87%	-0.29%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	16.72%	22.72%	-6.00%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	17.40%	21.93%	-4.53%

VEA vs. MGK - Expense Ratio Comparison

VEA has a 0.03% expense ratio, which is lower than MGK's 0.05% 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

VEA vs. MGK - Dividend Comparison

VEA's dividend yield for the trailing twelve months is around 2.62%, more than MGK's 0.33% 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%
VEA Vanguard FTSE Developed Markets ETF	2.62%	3.22%	3.35%	3.15%	2.91%	3.16%	2.04%	3.04%	3.35%	2.77%	3.05%	2.92%

Frequently Asked Questions

Can I hold both VEA and MGK in my portfolio?

VEA and MGK have a correlation of 0.67, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, VEA or MGK?

VEA has higher volatility (6.84%) compared to MGK (5.96%). In terms of maximum drawdown, VEA dropped -60.68% vs MGK's -48.43%.

Which ETF is better, VEA or MGK?

On 10-year performance, MGK leads with 18.85% vs 10.72% for VEA. On fees, VEA is cheaper at 0.03% per year. On volatility, MGK has been the lower-risk option at 5.96%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, VEA or MGK?

Over the 10-year period, MGK has performed better with a 18.85% return vs 10.72%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, VEA or MGK?

VEA is cheaper with a 0.03% expense ratio, compared with 0.05% for MGK.

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

VEA has the higher dividend yield at 2.62%, compared with 0.33% for MGK.

What is the main difference between VEA and MGK?

VEA is categorized as Foreign Large Cap Equities, while MGK is Large Cap Growth Equities. VEA tracks FTSE Developed All Cap ex US Index, while MGK tracks CRSP US Mega Cap Growth Index. Their fees differ too: 0.03% for VEA and 0.05% for MGK.

Which has better risk-adjusted returns?

VEA currently has the higher Sharpe Ratio (1.81 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.