Vanguard S&P 500 Growth ETF vs iShares Russell 2000 Growth ETF: Which Growth Stock Fund Is the Better Buy?
Sector concentration and risk profiles set these two growth ETFs apart, offering distinct approaches for investors seeking capital appreciation.
Vanguard S&P 500 Growth ETF vs iShares Russell 2000 Growth ETF: Which Growth Stock Fund Is the Better Buy?
Overview
Not all stock ETFs are created equal. The Vanguard S&P 500 Growth ETF (NYSEMKT:VOOG) offers low-cost exposure to established large-cap growth giants, while iShares Russell 2000 Growth ETF (NYSEMKT:IWO) targets the more volatile small-cap growth sector.
Both funds aim to capture capital appreciation by selecting stocks with strong growth characteristics. However, they fish in very different ponds: one focuses on established giants in the S&P 500, while the other focuses on smaller companies. Choosing between them depends on an investor's preference for large-cap stability versus small-cap agility.
Details
The Vanguard fund is significantly more affordable, with an expense ratio of 0.07%, less than one-third of the 0.24% charged by the iShares fund. Payouts are not the primary focus for either, but both maintain a trailing dividend yield below 1%.
Source
Originally published at www.fool.com.
