Vanguard Morningstar Mega Cap ETF

Frequently Asked Questions About MGC

What does MGC invest in?

This ETF, the Vanguard Mega Cap, is designed to replicate the performance of the CRSP US Mega Cap Index. It employs a passively managed, full-replication approach, purchasing all constituents of its benchmark. The fund provides a straightforward avenue for diversified investment into the premier U.S. companies, collectively representing approximately the leading 70% of domestic market capitalization. Regarding 75% of its total assets, the fund is subject to specific limitations: it may not buy more than 10% of any single issuer's voting shares, nor invest in a company if that allocation would cause more than 5% of the fund's total assets to be held in that issuer's securities. However, these restrictions are waived if exceeding them is necessary to precisely approximate the target index's composition. Notably, these concentration limits do not apply to obligations issued by the U.S. government or its associated agencies and instrumentalities.

What is the expense ratio of MGC?

Vanguard Morningstar Mega Cap ETF (MGC) charges an expense ratio of 0.05%. This is the annual fee deducted from fund assets to cover management and operations.

How big is MGC?

Vanguard Morningstar Mega Cap ETF (MGC) manages $11.00B in total assets. AUM determines bid-ask liquidity and the fund's vulnerability to closure. Funds below ~$50M are at higher risk of liquidation.

Is MGC actively managed or an index fund?

MGC is a passive index fund. It tracks a published benchmark by holding the constituents in their published weights. Index funds typically charge low expense ratios (MGC's is 0.05%) because there's no security selection cost.

When was MGC launched?

Vanguard Morningstar Mega Cap ETF (MGC) launched in December 2007 and is managed by Vanguard.

How has MGC performed?

MGC's total return (price change plus reinvested distributions) is charted at the top of this page. Switch the price chart to Total Return and pick a 1-year, 3-year, 5-year, or 10-year window to read the compound annual growth rate (CAGR) over each horizon.