MGV vs PDP

MGVAVanguard Morningstar Mega Cap Value ETF

PDPDInvesco Dorsey Wright Momentum ETF

In short

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.

PDP A momentum fund with a chart-reader's pedigree. PDP has followed Dorsey Wright's Technical Leaders Index since 2007, holding roughly 100 US stocks picked for relative strength rather than a textbook factor formula.

Stated mandate

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.

PDP The issuer describes the fund as based on the Dorsey Wright® Technical Leaders Index.

Why people hold it

• 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.

• PDP Live since 2007, so its record runs through multiple market cycles instead of a backtest.
• The index screens on Dorsey Wright's relative-strength work, so names earn their spot by price leadership, not by cheapness or size.invesco.com
• Concentrated on purpose: about 100 US stocks, so leaders actually move the fund instead of getting diluted across the whole market.
• A multi-billion-dollar fund from Invesco, one of the larger ETF shops in the US.

Worth knowing

• 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.

• PDP At 0.62% a year, it costs more than the typical plain index tracker. That is the toll for a rules set that actively reshuffles toward leadership.
• Trades lighter than the index heavyweights in its group, so spreads can run wider, particularly at the open and close.
• A concentrated momentum sleeve behaves nothing like a total-market fund such as VT, and distributions land only once or twice a year.

Full MGV profile⁠

Full PDP profile⁠