Vanguard Mega Cap Value Index Fund ETF Shares (NYSEARCA:MGV) has reported an 18% return over the past year, with a 2.02% yield and a 0.07% expense ratio. The fund tracks 130 mega-cap stocks, focusing on companies trading at value multiples.
JPMorgan Chase & Co. (NYSE:JPM) leads the holdings at 4.74% of assets. The company raised its dividend by 23.4% last year. Other top holdings include Johnson & Johnson (NYSE:JNJ) at 2.74% and Exxon Mobil Corp (NYSE:XOM) at 2.72%.
MGV's five-year gain stands at 85%, which trails the Vanguard Growth ETF (NYSEARCA:VUG)'s 97% return over the same period. The fund has an 11% technology exposure, limiting its participation in tech rallies. Financials represent the largest sector allocation at 21.7%, followed by healthcare at 18.8%.
The fund provides steady dividend income and capital appreciation from undervalued companies. Its minimal fee ensures investors retain most earnings. During market uncertainty, defensive sectors in the portfolio offer stability.
VUG offers a contrasting approach with a 50% technology weighting and a 0.04% expense ratio, yielding 0.39%. It has delivered higher returns but with less dividend income. MGV caps upside in growth-driven markets due to its value focus.
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