Vanguard Growth ETF vs. Vanguard Mega Cap Growth ETF: The AI Sell-Off Exposes a Hidden Risk in Both Funds

Two popular Vanguard growth ETFs (VUG and MGK) have substantial overlap in holdings with approximately 87% portfolio weight similarity, both heavily concentrated in Big Tech stocks like Nvidia, Apple, and Microsoft. While VUG offers broader diversification with 135 holdings versus MGK's 52 and charges a lower 0.03% expense ratio, neither fund provides meaningful protection during technology sector downturns. The recent AI sell-off highlights concentration risks for growth investors, with VUG recommended as the slightly better option for long-term investors seeking lower fees without sacrificing exposure to mega-cap growth companies.