Better Growth Stock ETF: Vanguard's Large-Cap VUG vs. Invesco's Small-Cap RZG
VUG delivered 80% higher five-year returns despite a 10x higher expense ratio, but RZG surged 26.9% over the past year.
Overview
The Vanguard Morningstar Growth ETF (NYSEMKT:VUG) provides ultra-low-cost exposure to domestic large-cap growth stocks, whereas the Invesco S&P SmallCap 600 Revenue ETF (NYSEMKT:RZG) targets small-cap growth companies by weighting them according to a growth score that incorporates metrics such as revenue.
This comparison looks at two very different ways to capture market momentum. The Vanguard Morningstar Growth ETF tracks the performance of the CRSP U.S. Large Cap Growth Index, focusing on established leaders. In contrast, the Invesco S&P SmallCap 600 Revenue ETF screens for growth while weighting constituents based on top-line results.
Details
Beta measures price volatility relative to the S&P 500; beta is calculated from monthly returns over the available fund history (up to five years). 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.