XLG vs. MGC

Last updated Jun 16, 2026

XLG (Invesco S&P 500 Top 50 ETF) and MGC (Vanguard Mega Cap ETF) are both exchange-traded funds - XLG is a S&P 500 fund tracking the S&P 500 Top 50 Index, while MGC is a Large Cap Blend Equities fund tracking the CRSP US Mega Cap Index. Both are passively managed. Over the past 10 years, XLG returned 17.23%/yr vs 16.48%/yr for MGC. With a 0.97 correlation, they move nearly in lockstep. XLG charges 0.20%/yr vs 0.05%/yr for MGC.

Performance

XLG vs. MGC - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in Invesco S&P 500 Top 50 ETF (XLG) and Vanguard Mega Cap ETF (MGC). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, XLG achieves a 5.56% return, which is significantly lower than MGC's 10.55% return. Both investments have delivered pretty close results over the past 10 years, with XLG having a 17.23% annualized return and MGC not far behind at 16.48%.

XLG

• 1D: 1.88%
• 1M: -1.70%
• YTD: 5.56%
• 6M: 6.64%
• 1Y: 25.51%
• 3Y*: 22.53%
• 5Y*: 15.57%
• 10Y*: 17.23%

MGC

• 1D: 1.96%
• 1M: 1.72%
• YTD: 10.55%
• 6M: 11.42%
• 1Y: 28.97%
• 3Y*: 22.57%
• 5Y*: 14.62%
• 10Y*: 16.48%

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

XLG vs. MGC - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
XLG Invesco S&P 500 Top 50 ETF	5.56%	19.51%	33.49%	38.16%	-24.29%	30.77%	24.15%	32.04%	-3.59%	23.04%
MGC Vanguard Mega Cap ETF	10.55%	19.31%	27.16%	29.77%	-19.95%	27.58%	21.57%	31.14%	-3.45%	22.61%

Correlation

The correlation between XLG and MGC is 0.97 - 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	0.97
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	0.97
Correlation (All Time) Calculated using the full available price history since Dec 27, 2007	0.97

The correlation between XLG and MGC has been stable across timeframes, ranging from 0.97 to 0.98 - a consistent structural relationship.

XLG vs. MGC - Sectors Allocation Comparison

Sectors	XLG	MGC
Technology	45.9%	39.3%
Communication Services	15.9%	13.1%
Consumer Cyclical	10.6%	10.1%
Financial Services	9.5%	11.7%
Healthcare	7.4%	8.9%
Consumer Defensive	5.5%	4.8%
Energy	2.6%	2.6%
Industrials	2.0%	6.5%
Basic Materials	0.6%	1.2%
Real Estate	-	1.0%
Utilities	-	1.0%

Return for Risk

XLG vs. MGC — Risk / Return Rank

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

XLG

XLG Risk / Return Rank: 56
XLG Sharpe Ratio Rank: 62
XLG Sortino Ratio Rank: 60
XLG Omega Ratio Rank: 61
XLG Calmar Ratio Rank: 46
XLG Martin Ratio Rank: 49

MGC

MGC Risk / Return Rank: 74
MGC Sharpe Ratio Rank: 79
MGC Sortino Ratio Rank: 76
MGC Omega Ratio Rank: 77
MGC Calmar Ratio Rank: 65
MGC 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.

XLG vs. MGC - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Invesco S&P 500 Top 50 ETF (XLG) and Vanguard Mega Cap ETF (MGC). 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.

	XLG	MGC	Difference
Sharpe ratio: Return per unit of total volatility	1.86	2.25	-0.39
Sortino ratio: Return per unit of downside risk	2.52	3.03	-0.50
Omega ratio: Gain probability vs. loss probability	1.33	1.41	-0.07
Calmar ratio: Return relative to maximum drawdown	2.06	2.96	-0.89
Martin ratio: Return relative to average drawdown	7.55	12.90	-5.35

XLG vs. MGC - Sharpe Ratio Comparison

The current XLG Sharpe Ratio is 1.86, which is comparable to the MGC Sharpe Ratio of 2.25. The chart below compares the historical Sharpe Ratios of XLG and MGC, 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

XLG vs. MGC - Drawdown Comparison

The maximum XLG drawdown since its inception was -52.39%, roughly equal to the maximum MGC drawdown of -52.26%. Use the drawdown chart below to compare losses from any high point for XLG and MGC.

Drawdown Indicators

	XLG	MGC	Difference
Max Drawdown Largest peak-to-trough decline	-52.39%	-52.26%	-0.13%
Max Drawdown (1Y) Largest decline over 1 year	-12.41%	-9.85%	-2.56%
Max Drawdown (3Y) Largest decline over 3 years	-20.70%	-19.28%	-1.42%
Max Drawdown (5Y) Largest decline over 5 years	-28.02%	-25.74%	-2.28%
Max Drawdown (10Y) Largest decline over 10 years	-30.46%	-33.07%	+2.61%
Current Drawdown Current decline from peak	-3.28%	-1.02%	-2.26%
Average Drawdown Average peak-to-trough decline	-7.64%	-7.18%	-0.46%
Ulcer Index Depth and duration of drawdowns from previous peaks	3.39%	2.25%	+1.14%

Volatility

XLG vs. MGC - Volatility Comparison

The current volatility for Invesco S&P 500 Top 50 ETF (XLG) is 4.58%, while Vanguard Mega Cap ETF (MGC) has a volatility of 4.96%. This indicates that XLG experiences smaller price fluctuations and is considered to be less risky than MGC based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	XLG	MGC	Difference
Volatility (1M) Calculated over the trailing 1-month period	4.58%	4.96%	-0.38%
Volatility (6M) Calculated over the trailing 6-month period	10.57%	10.21%	+0.36%
Volatility (1Y) Calculated over the trailing 1-year period	13.78%	12.94%	+0.84%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	18.76%	17.37%	+1.39%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	18.88%	18.26%	+0.62%

XLG vs. MGC - Expense Ratio Comparison

XLG has a 0.20% expense ratio, which is higher than MGC's 0.05% expense ratio. However, both funds are considered low-cost compared to the broader market, where average expense ratios usually range from 0.3% to 0.9%.

Dividends

XLG vs. MGC - Dividend Comparison

XLG's dividend yield for the trailing twelve months is around 0.61%, less than MGC's 0.87% 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%
XLG Invesco S&P 500 Top 50 ETF	0.61%	0.64%	0.72%	0.97%	1.34%	0.94%	1.25%	1.58%	2.00%	1.85%	2.00%	2.09%

Frequently Asked Questions

Can I hold both XLG and MGC in my portfolio?

With a correlation of 0.97, XLG and MGC 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, XLG or MGC?

MGC has higher volatility (4.96%) compared to XLG (4.58%). In terms of maximum drawdown, XLG dropped -52.39% vs MGC's -52.26%.

Which ETF is better, XLG or MGC?

On 10-year performance, XLG leads with 17.23% vs 16.48% for MGC. On fees, MGC is cheaper at 0.05% per year. On volatility, XLG has been the lower-risk option at 4.58%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, XLG or MGC?

Over the 10-year period, XLG has performed better with a 17.23% return vs 16.48%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, XLG or MGC?

MGC is cheaper with a 0.05% expense ratio, compared with 0.20% for XLG.

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

MGC has the higher dividend yield at 0.87%, compared with 0.61% for XLG.

What is the main difference between XLG and MGC?

XLG is categorized as S&P 500, while MGC is Large Cap Blend Equities. XLG tracks S&P 500 Top 50 Index, while MGC tracks CRSP US Mega Cap Index. They also come from different issuers: Invesco and Vanguard. Their fees differ too: 0.20% for XLG and 0.05% for MGC.

Which has better risk-adjusted returns?

MGC currently has the higher Sharpe Ratio (2.25 vs 1.86), 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.