Mega Cap Growth vs Small Cap Growth: Which ETF Wins?
MGK offers lower costs and mega-cap stability; SLYG delivered 27.4% returns over one year with broader diversification across industrials and healthcare.
Overview
The Vanguard Morningstar Mega Cap Growth ETF (NYSEMKT:MGK) offers low-cost exposure to the largest U.S. growth stocks, while the State Street SPDR S&P 600 Small Cap Growth ETF (NYSEMKT:SLYG) targets smaller companies with high expansion potential.
Investors choosing between these two funds are essentially weighing the stability and dominance of America's largest corporations against the high-octane potential of small-cap companies. While both ETFs strictly target growth-oriented firms, the scale of their underlying holdings creates vastly different risk profiles and performance drivers for a portfolio.
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-yr 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.