Which Growth ETF Is the Better Buy: Vanguard's Large-Cap VUG or iShares' Small-Cap ISCG?
VUG has delivered stronger total returns over the past five years, while ISCG -- up 26.5% over the past year -- has had the edge more recently.
Overview
Investors torn between the safety of mega-cap names and the upside of smaller, faster-growing companies have two low-cost options to consider: the Vanguard Morningstar Growth ETF (NYSEMKT:VUG) and the iShares Morningstar Small-Cap Growth ETF (NYSEMKT:ISCG). VUG leans into the largest, most dominant companies driving the U.S. economy, resulting in a very tech-heavy portfolio. ISCG casts a much wider net across smaller companies with high growth potential.
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.
Details
VUG is the cheaper option, carrying an expense ratio of 0.03% compared to ISCG's 0.06%. ISCG currently offers the higher dividend yield of 0.59%, compared to VUG's 0.40%.
Source
Originally published at www.fool.com.