Better Vanguard ETF: VOO vs. VOOG

• VOO charges a little disbursal ratio and delivers a higher dividend output than VOOG.

• VOOG has outperformed implicit the past twelvemonth but experienced a deeper maximum drawdown implicit 5 years.

• VOOG leans heavy into exertion and maturation stocks, portion VOO offers broader assemblage diversification.

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The Vanguard S&P 500 Growth ETF (NYSEMKT:VOOG) focuses connected maturation stocks and has outperformed implicit the past year, portion the Vanguard S&P 500 ETF (NYSEMKT:VOO) charges less, yields more, and provides broader U.S. marketplace exposure.

Both VOOG and VOO purpose to way large-cap U.S. stocks, but their approaches differ. VOOG isolates the maturation conception of the S&P 500 Index (SNPINDEX:^GSPC), portion VOO tracks the afloat S&P 500 Index. For investors weighing focused maturation vulnerability against full marketplace breadth, comparing their costs, performance, and portfolio constitution tin assistance clarify which whitethorn acceptable best.

Beta measures terms volatility comparative to the S&P 500; beta is calculated from five-year play returns. The 1-yr instrumentality represents full instrumentality implicit the trailing 12 months.

VOO is much affordable to hold, with a 0.03% disbursal ratio compared to 0.07% for VOOG, and it besides pays retired a higher dividend output astatine 1.1% versus 0.5% for VOOG.

VOO seeks to replicate the afloat S&P 500 Index, holding 505 stocks arsenic of its 15.3-year way record. Its assemblage premix is broad: exertion (37%), fiscal services (12%), and user cyclical (11%). Top holdings see NVIDIA (NASDAQ:NVDA) astatine 7.38%, Apple (NASDAQ:AAPL) astatine 7.08%, and Microsoft (NASDAQ:MSFT) astatine 6.25%. This breadth provides vulnerability crossed the U.S. system and whitethorn assistance creaseless sector-specific volatility implicit time.

VOOG, by contrast, isolates the S&P 500's maturation names, concentrating 58% successful technology, 12% successful user cyclicals, and 10% successful fiscal services. Its apical 3 holdings are NVIDIA astatine 13.53%, Apple astatine 5.96%, and Microsoft astatine 5.96%. This results successful a much concentrated portfolio (212 holdings) with greater vulnerability to tech-driven maturation trends, but besides amplifies assemblage and stock-specific risks.

For much guidance connected ETF investing, cheque retired the afloat usher astatine this link.

The Vanguard S&P 500 Growth ETF (VOOG) and the Vanguard S&P 500 ETF (VOO) are designed for antithetic types of investors. VOO is for those who privation much stability, which is provided by the ETF's broader banal diversification and demonstrated by its little max drawdown.