Vanguard’s VOOG and Invesco’s MGK diverge significantly in technology sector weighting, with VOOG allocating 38.2% to tech versus MGK’s 31.5%, impacting returns and risk profiles. The difference underscores strategic choices in sector concentration.
- VOOG holds 38.2% in technology, compared to MGK’s 31.5%
- VOOG returned 21.7% over the past 12 months; MGK returned 19.3%
- VOOG’s 15.2% drawdown was 1.4 points higher than MGK’s during Q3 correction
- Microsoft, Apple, and Nvidia are top holdings in VOOG
- MGK offers more diversified sector weightings outside of tech
- Tech exposure divergence affects risk-return profiles and strategic positioning
Vanguard’s Vanguard Growth ETF (VOOG) and Invesco’s Morningstar Growth ETF (MGK) are both designed for investors targeting capital appreciation, but their approach to technology exposure reveals a critical divergence. VOOG holds 38.2% of its portfolio in technology, while MGK maintains a 31.5% allocation, placing it below the broader market average. This 6.7-percentage-point gap reflects a more aggressive tech tilt in VOOG, driven by significant holdings in large-cap innovators like Microsoft, Apple, and Nvidia. The disparity in sector weighting has real performance implications. Over the past 12 months, VOOG has delivered a 21.7% return, outpacing MGK’s 19.3%, a 2.4-percentage-point advantage largely attributable to stronger tech sector gains. The volatility of tech stocks has also affected downside protection, with VOOG experiencing a 15.2% drawdown during the Q3 correction, compared to MGK’s 13.8% decline—a 1.4-percentage-point difference despite similar overall risk metrics. Investors seeking concentrated exposure to innovation may favor VOOG for its deeper tech penetration, while those prioritizing sector diversification may find MGK’s lower tech weighting more palatable. Both ETFs maintain a broad market cap focus, but VOOG’s higher reliance on mega-cap tech firms amplifies both upside potential and downside sensitivity during market shifts. The trend highlights how ETF selection is increasingly defined by strategic sector positioning, especially within growth-oriented vehicles. As macroeconomic conditions influence technology valuations, these differences in exposure will continue to shape relative performance across portfolios.