The Vanguard Morningstar Mega Cap Value ETF (MGV Quick QuoteMGV - Free Report) was launched on December 17, 2007, and is a passively managed exchange traded fund designed to offer broad exposure to the Large Cap Value segment of the US equity market.

The fund is sponsored by Vanguard. It has amassed assets over $13.95 billion, making it one of the larger ETFs attempting to match the Large Cap Value segment of the US equity market.

Why Large Cap Value

Large cap companies usually have a market capitalization above $10 billion. Overall, they are usually a stable option, with less risk and more sure-fire cash flows than mid and small cap companies.

Carrying lower than average price-to-earnings and price-to-book ratios, value stocks also have lower than average sales and earnings growth rates. When you look at long-term performance, value stocks have outperformed growth stocks in nearly all markets. But in strong bull markets, growth stocks are more likely to be winners.

Costs

When considering an ETF's total return, expense ratios are an important factor, and cheaper funds can significantly outperform their more expensive counterparts in the long term if all other factors remain equal.

Annual operating expenses for this ETF are 0.05%, making it one of the least expensive products in the space.

It has a 12-month trailing dividend yield of 1.86%.

Sector Exposure and Top Holdings

Even though ETFs offer diversified exposure which minimizes single stock risk, it is still important to look into a fund's holdings before investing. Luckily, most ETFs are very transparent products that disclose their holdings on a daily basis.

This ETF has heaviest allocation to the Financials sector -- about 23.9% of the portfolio. Healthcare and Industrials round out the top three.

Looking at individual holdings, Micron Technology Inc (MU) accounts for about 5.91% of total assets, followed by Jpmorgan Chase & Co (JPM) and Berkshire Hathaway Inc (BRK/B).

The top 10 holdings account for about 26.61% of total assets under management.

Performance and Risk

MGV seeks to match the performance of the CRSP U.S. Mega Cap Value Index before fees and expenses. The Morningstar US Mega Cap Value Index seeks to accurately represent the mega-cap value segment of the U.S. equity market and deliver low turnover.

The ETF has added roughly 18.72% so far this year and it's up approximately 23.07% in the last one year (as of 11/09/2026). In the past 52-week period, it has traded between $135.53 and $171.32.

The ETF has a beta of 0.71 and standard deviation of 11.86% for the trailing three-year period, making it a medium risk choice in the space. With about 118 holdings, it effectively diversifies company-specific risk.

Alternatives

Vanguard Morningstar Mega Cap Value ETF holds a Zacks ETF Rank of 1 (Strong Buy), which is based on expected asset class return, expense ratio, and momentum, among other factors. Because of this, MGV is an outstanding option for investors seeking exposure to the Style Box - Large Cap Value segment of the market. There are other additional ETFs in the space that investors could consider as well.

The Schwab U.S. Dividend Equity ETF (SCHD) and the Vanguard Morningstar Value ETF (VTV) track a similar index. While Schwab U.S. Dividend Equity ETF has $119.68 billion in assets, Vanguard Morningstar Value ETF has $191.98 billion. SCHD has an expense ratio of 0.06% and VTV charges 0.03%.

Bottom-Line

Passively managed ETFs are becoming increasingly popular with institutional as well as retail investors due to their low cost, transparency, flexibility and tax efficiency. They are excellent vehicles for long term investors.

To learn more about this product and other ETFs, screen for products that match your investment objectives and read articles on latest developments in the ETF investing universe, please visit Zacks ETF Center.