MGC vs SIXA

MGCAVanguard Morningstar Mega Cap ETF

SIXADETC 6 Meridian Mega Cap Equity ETF

In short

MGC Mega cap without the guesswork. MGC owns roughly 190 of the largest US companies for 0.05% a year, a fraction of what most rivals in its aisle charge, and has run that way since 2007.

SIXA Most mega-cap funds just buy the biggest companies. SIXA is actively managed: it screens the largest 10% of the Russell 3000 on beta, momentum, yield, value and quality down to roughly 50 names, at 0.46% with no waiver in place.

Stated mandate

MGC The fund seeks to track the CRSP US Mega Cap Index and provide diversified exposure to the largest U.S. stocks through passive full replication.

SIXA The Fund seeks capital appreciation.

Why people hold it

• MGC 0.05% a year, against 0.20% at the two iShares mega-cap options (OEF, TOPT) and 0.47% at SIXA. Same neighborhood of stocks, much smaller toll.
• Roughly 190 names versus 100 in OEF and 20 in TOPT: the widest net in the mega-cap group, without wandering into mid or small caps.
• No engineering to decode. It buys the CRSP US Mega Cap Index outright, full replication, and has tracked that index about as tightly as an index fund can.
• Trading since 2007 and now a multi-billion-dollar fund, it sits among the strongest implementations in its mega-cap peer group.

• SIXA Rules-driven stock picking inside the mega-cap universe: names are ranked on beta, momentum, yield, value and quality, then weighted by how many factors they score well on.sec.gov
• A low-beta tilt is written into the model, which ranks lower-beta stocks more favorably, so it leans toward steadier giants rather than the hottest ones.sec.gov
• Roughly 50 holdings, so each position actually matters, versus the hundreds of names in a cap-weighted mega-cap index. Distributions go out monthly.
• Live since 2020, which means several years of real-world record for an active strategy, not a backtest.

Worth knowing

• MGC Giants only, by design. No mid or small caps, so the mix leans wherever the biggest US companies happen to cluster.
• Moderately traded rather than one of the tape's busiest tickers, so spreads can run a touch wider than the largest broad-market funds.
• Distributions land quarterly, not monthly.

• SIXA At 0.46% with no waiver, it sits above the category median fee; index rivals cover mega caps for less, including MGC at 0.05% and OEF at 0.20%.
• Thinly traded next to its index peers, so bid-ask spreads can be wider and bigger orders can push the price around.
• Non-diversified and concentrated, with active turnover, so results can drift well away from a standard mega-cap index in either direction, and it ranks behind cheaper rivals in this small peer group.sec.gov

Full MGC profile⁠

Full SIXA profile⁠