MGK Holds 46 Percent in Just Five Stocks, And That Concentration Is Driving Most of Its Recent Gains

MGK holds 63 companies but is heavily concentrated in the largest U.S. growth names. The fund tracks the CRSP US Mega Cap Growth Index and charges a 0.05% expense ratio. Assets under management total about $32 billion, and a 5-for-1 split on April 21, 2026 leaves shares trading around $88. NVIDIA, Apple, Microsoft, Alphabet, and Amazon together represent about 45.84% of the fund. Over the past year, strong gains from NVIDIA, Alphabet, Apple, and Amazon drove most of the fund’s 28% return versus 25% for the S&P 500, while Microsoft’s decline reduced results. A coordinated 20% drawdown in NVIDIA, Apple, and Microsoft could reduce MGK by roughly 7% before other holdings respond.

"Five names carry almost 46% of the fund. The MGK pitch is straightforward exposure to U.S. mega-cap growth, and the math has worked. MGK returned 28% over the past year against 25% for the S&P 500. The reason is obvious. Five megacaps did the work, and the fund's concentration meant holders got the full benefit."

"MGK tracks the CRSP US Mega Cap Growth Index, a market-cap-weighted slice of the largest U.S. growth names. The expense ratio sits at 0.05%, assets under management run $32 billion, and Vanguard executed a 5-for-1 split on April 21, 2026, so shares now trade around $88. The story lives in the top five. NVIDIA is 13.75% of the fund. Apple is 11.77%, Microsoft 8.68%, Alphabet 6.45%, and Amazon 5.19%."

"Stack them and you get about 45.84% in five companies. The same five names inside the SPDR S&P 500 ETF Trust combine to roughly 26% by prospectus weights. MGK functions as a concentrated wager on five megacaps with 5 dozen satellite positions along for the ride. Concentration earned its keep this cycle. Over the trailing year NVIDIA returned 66%, Alphabet 133%, Apple 46%, and Amazon 30%."

"The drag came from Microsoft, down 8.5% on the year. With 9% of the fund stumbling, the other megacaps had to cover the gap, and they did. Reverse the polarity on any one of these names and the same mechanic punishes you. Run the stress test. A coordinated 20% drawdown in NVIDIA, Apple, and Microsoft would cost MGK roughly 7% before the remaining holdings move at all."

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