The Vanguard ETF With the Second-Highest Returns in the Past Ten Years Is Undergoing a 5-to-1 Stock Split. Discover Why April Is an Excellent Time to Buy.

Vanguard Announces Share Splits for Popular ETFs

Vanguard, a leading investment management company, has revealed plans to split shares for five of its most widely held equity index ETFs. Among these is the Vanguard Mega Cap Growth ETF (MGK), which will undergo a 5-for-1 stock split.

Set to take effect on April 21, this split aims to make shares more accessible by lowering the price per share, thereby attracting a broader range of investors. Following the split, the number of shares will increase fivefold, and the share price is expected to adjust to approximately $70, based on current market values.

Below, we explore why the Mega Cap Growth ETF stands out as a top choice for growth-focused investors this April.

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Understanding the Volatility of the Mega Cap Growth ETF

Over the past decade, the Mega Cap Growth ETF has delivered an impressive average annual return of 18.3%, making it the second-best performer among Vanguard’s 65 equity ETFs—trailing only the Vanguard Information Technology ETF.

However, these strong returns have come with significant price swings. In the last ten years, the fund has experienced two declines of at least 20% (in December 2018 and April 2025) and two drops exceeding 30% (in March 2020 and December 2022).

Currently, the ETF is trading 17% below its record high from October 2025. Should it fall past the 20% mark, this would mark its fifth bear market in under eight years.

Despite these downturns, the ETF has significantly outperformed the S&P 500 over the past decade, highlighting the benefits of long-term investing and compounding returns for those who remain patient.

Concentration in Leading Growth Companies

The Mega Cap Growth ETF is intentionally focused on a select group of large-cap growth stocks, betting that these industry leaders will continue to drive market gains. Its top 10 holdings—Nvidia, Apple, Alphabet, Microsoft, Amazon, Meta Platforms, Tesla, Broadcom, Eli Lilly, and Visa—collectively account for a remarkable 67.7% of the fund’s assets.

For comparison, the largest 10 stocks in the S&P 500 make up just 37.9% of that index. This means that when these mega-cap companies outperform, the ETF can deliver outsized returns, as seen over the past decade. However, this level of concentration can also magnify losses during market downturns.

Key Information for MGK

• Today's Change: +0.03% ($0.11)
• Current Price: $371.84
• Day's Range: $363.62 – $372.60
• 52-Week Range: $262.65 – $426.80
• Volume: 487,000

Why Long-Term Investors Should Consider MGK

For the Mega Cap Growth ETF to maintain its edge over the S&P 500 in the years ahead, the earnings growth of its largest holdings must continue to support their valuations. As valuations have moderated recently, these companies may find it easier to surpass market expectations.

Currently, the ETF’s price-to-earnings (P/E) ratio stands at 31.1, compared to 25.1 for the Vanguard S&P 500 ETF. While mega-cap growth stocks still command a premium, the gap has narrowed in recent months.

Investors should be mindful of several risks, including the uncertain returns from capital-intensive AI investments, softer consumer demand, geopolitical instability, and inflation driven by rising oil prices. These factors are important to weigh before investing in growth stocks. Nevertheless, for those with a long-term outlook, April presents an attractive entry point for the Mega Cap Growth ETF, which is now trading at its lowest level since June of last year.

The upcoming stock split will make it easier for investors to purchase full shares at a reduced price. With a low expense ratio of just 0.05%, the fund offers a cost-effective way to gain exposure to leading U.S. growth companies without incurring high fees.

Despite its strengths, this growth-focused ETF is best suited for those comfortable with market volatility. Before investing, it’s wise to review your portfolio to avoid overlapping holdings, especially if you already own significant shares in some of the largest technology firms by market capitalization.