Vanguard Russell 1000 Growth vs. Invesco SmallCap 600 Revenue: Which Is Better for a Diversified Portfolio?
Vanguard's ultra-low 0.06% expense ratio appeals to cost-conscious investors, while Invesco's small-cap strategy delivered 22.3% returns over the past year.
Overview
Vanguard Russell 1000 Growth ETF (NASDAQ:VONG) provides low-cost exposure to large-cap U.S. leaders, while Invesco S&P SmallCap 600 Revenue ETF (NYSEMKT:RZG) offers a niche, revenue-weighted strategy for small-cap growth companies.
These two funds target different ends of the market capitalization spectrum. The Vanguard fund tracks established American corporations, whereas the Invesco fund filters the small-cap universe based on revenue and growth characteristics, creating distinct risk and volatility profiles for long-term investors looking to diversify their equity holdings.
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.
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Source
Originally published at www.fool.com.