Better Growth ETF: Vanguard's VOOG Targeting the S&P 500 vs. State Street's Small Cap-Focused SLYG
Large-cap tech dominance delivers higher five-year returns, but smaller companies offer more balanced sector exposure and lower volatility.
Overview
The Vanguard S&P 500 Growth ETF (NYSEMKT:VOOG) offers low-cost exposure to large-cap tech leaders, whereas the State Street SPDR S&P 600 Small Cap Growth ETF (NYSEMKT:SLYG) targets smaller companies with high growth momentum.
Investors choosing between these funds are deciding between large-cap stability and small-cap potential. While the Vanguard fund tracks the growth segment of the S&P 500, the State Street fund focuses on the growth tier of the S&P SmallCap 600. Both funds target capital appreciation using very different market-capitalization lenses.
Details
Beta measures price volatility relative to the S&P 500; beta is calculated from five-year monthly returns. The 1-year return represents total return over the trailing 12 months. Dividend yield is the trailing-12-month distribution yield.
Source
Originally published at www.fool.com.