Which Growth-Focused ETF is the Better Fit? Vanguard Morningstar Growth (VUG) or SPDR Small Cap Growth ETF (SLYG)?
Vanguard's large-cap fund delivered 47% more wealth over five years, but State Street's small-cap strategy offers lower volatility and higher income.
Overview
The Vanguard Morningstar Growth ETF (NYSEMKT:VUG) provides low-cost exposure to large-cap giants, while the State Street SPDR S&P 600 Small Cap Growth ETF (NYSEMKT:SLYG) tracks smaller companies with strong growth characteristics at a slightly higher price.
Growth investing can look very different depending on where you look in the market. This comparison pits a massive large-cap fund against a targeted small-cap strategy. While both seek companies with expanding earnings and sales, their portfolios and risk profiles differ substantially due to the size, maturity, and market positions of the businesses they hold. One provides exposure to established leaders, while the other offers the potential for high-octane expansion from smaller firms.
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.