Which Small-Cap Growth ETF Is Better, Vanguard's VBK or the iShares IWO?
Vanguard's ultra-low 0.05% fee trails iShares' 33.7% one-year gain, forcing investors to weigh long-term savings against recent outperformance.
Overview
The iShares Russell 2000 Growth ETF (NYSEMKT:IWO) offers a broader portfolio and slightly higher recent returns, while the Vanguard Morningstar Small-Cap Growth ETF (NYSEMKT:VBK) features a significantly lower expense ratio.
Both funds target the aggressive growth segment of the small-cap market but track different indexes. While the iShares fund follows the well-known Russell 2000 Growth Index, the Vanguard fund utilizes a Morningstar-branded index. Investors often choose between these to capture the upside of emerging companies while managing specific sector tilts.
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-year 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.