Which Growth ETF Is the Better Long-Term Buy: Vanguard's Mega Cap MGK or Invesco's Small-Cap RZG?
Vanguard's tech-heavy portfolio delivered stronger five-year returns despite higher volatility, while Invesco's small-cap approach offers broader sector diversification.
Overview
The Vanguard Morningstar Mega Cap Growth ETF (NYSEMKT:MGK) offers a low-cost, technology-heavy approach to the largest U.S. companies, while the Invesco S&P SmallCap 600 Revenue ETF (NYSEMKT:RZG) provides targeted exposure to small-cap growth stocks.
These two exchange-traded funds occupy different corners of the market-capitalization spectrum. The Vanguard Morningstar Mega Cap Growth ETF tracks the giants of the domestic market, focusing on firms with the highest growth potential among mega-cap stocks. Conversely, the Invesco S&P SmallCap 600 Revenue ETF looks at smaller companies within the S&P 600 that exhibit strong growth characteristics.
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.