EQRR vs MGV

EQRRCProShares Equities for Rising Rates ETF

MGVAVanguard Morningstar Mega Cap Value ETF

In short

EQRR Most equity funds quietly hope rates sit still. EQRR leans the other way: roughly 50 large-cap US stocks chosen for how they have historically behaved when interest rates climb, tilted toward the sectors that tend to benefit.

MGV Most "value" ETFs slide down into mid caps. MGV stays at the very top of the US market and buys the value half of it for five basis points. Vanguard's plain, cheap way to own the old-guard giants.

Stated mandate

EQRR EQRR seeks to outperform during rising-rate periods through a portfolio of large-cap U.S. stocks selected for their historical relationship with interest-rate movements and tendency to perform well when rates increase.

MGV The ETF seeks to track the Morningstar US Mega Cap Value Index and provides passive, diversified exposure to the largest value stocks in the U.S. market.

Why people hold it

• EQRR A pure expression of one idea: which large-cap US stocks have historically moved with rising rates. No rate view bolted onto a plain index.proshares.com
• 0.35% a year, below the typical fee among actively managed US equity funds, for a rules-based index build rather than a manager's hunch.
• Live since 2017, so it has traded through both a hiking cycle and a cutting cycle instead of living on a backtest.
• Rates in, sectors out: the index does the sorting on a set schedule, which keeps the strategy legible and repeatable rather than discretionary.proshares.com

• MGV At 0.05% it is the cheapest fund in its factor peer group, where the median charges 0.28%. It undercuts fellow top-rated peers SIZE (0.15%) and SUSA (0.25%).vanguard.com
• Launched December 2007, straight into the crash, and now a multi-billion-dollar fund. Long history, quarterly distributions, Vanguard plumbing behind it.
• One of the strongest overall showings in its US factor peer group, built on cost and staying power rather than a clever screen.

Worth knowing

• EQRR A small, thinly traded fund. Spreads can be wider than on mega-cap ETFs, and sizeable orders deserve limit prices and patience.
• Roughly 50 names with heavy sector tilts, so it can diverge from the broad US market in either direction by a wide margin.
• The whole design is keyed to one regime. When rates fall or flatline, the same tilts built to help in a rising-rate stretch are what you own.

• MGV About 130 names, all mega caps. The biggest holdings carry real weight, and small and mid caps are absent by design.
• It tracks a Morningstar index of the largest US value stocks, so it leaves out the market's growth giants and can move very differently from a total-market fund.vanguard.com
• Moderately traded rather than a household-name ticker, so limit orders and mid-session trading matter more here than with the very largest index ETFs.

Full EQRR profile⁠

Full MGV profile⁠