MGK owns the biggest growth companies in America — think Apple, Microsoft, and Nvidia — giving you concentrated exposure to the tech titans and other mega-caps driving market returns. It's essentially the S&P 500's growth engine without the value baggage.
How It Works
The fund tracks the CRSP US Mega Cap Growth Index, which screens the largest 70% of US stocks by market cap for growth characteristics like high earnings growth, strong sales expansion, and momentum. It market-cap weights these giants, so your biggest positions are the companies already winning. The index reconstitutes quarterly, keeping the portfolio aligned with current growth leaders rather than yesterday's champions.
Key Features
- More concentrated than typical large-cap growth funds — just ~80 holdings vs 200+ in competitors
- Rock-bottom 0.07% expense ratio crushes actively managed growth funds charging 10x more
- Heavier tech weight than broad growth ETFs, often 50%+ vs 40% in Russell 1000 Growth
Risks
- When tech stumbles, this fund face-plants — expect 30-40% drawdowns in serious corrections
- Top 10 holdings often exceed 60% of assets, so a few stocks drive everything
- Growth stock valuations can stay irrational longer than you stay solvent — see 2022's -33% shellacking
Who Should Own This
Perfect for investors who want to own what's working without overthinking it — the Magnificent Seven and friends in one trade. Makes sense as a 10-20% satellite position for those comfortable with volatility, or as a core holding for true growth believers who can stomach the inevitable 30% drawdowns that come with owning expensive, fast-growing companies.