RZG Delivers Larger Gains Than SLYG, but It Comes With Increased Risk and Higher Fees

The State Street SPDR S&P 600 Small Cap Growth ETF (NYSEMKT:SLYG) and the Invesco S&P SmallCap 600 Pure Growth ETF (NYSEMKT:RZG) each people U.S. small-cap maturation stocks, but RZG comes with higher costs, a sharper healthcare tilt, and greater liquidity concerns than SLYG.

Both SLYG and RZG way indexes focused connected small-cap companies with beardown maturation characteristics, but determination are notable differences successful cost, assemblage exposure, and applicable considerations specified arsenic liquidity. This examination highlights the astir applicable tradeoffs for investors evaluating these 2 funds.

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

RZG charges much than doubly the yearly interest of SLYG and pays retired a little yield, making SLYG much affordable and somewhat much charismatic for those prioritizing income.

RZG tracks a “pure growth” mentation of the S&P SmallCap 600, holding 130 stocks arsenic of March 2026, with the heaviest weights successful healthcare (24%), exertion (19%), and industrials (16%). The fund’s largest positions—ACM Research Inc(NASDAQ:ACMR), Clear Secure Inc(NYSE:YOU), and Powell Industries Inc (NASDAQ:POWL)— each relationship for nether 2 percent of assets. RZG has a 20-year way record, but assets nether absorption stay modest, and the money is rebalanced annually.

SLYG tracks a broader S&P SmallCap 600 Growth Index, with 339 holdings and a much balanced assemblage mix: industrials and exertion astatine 19% each, and healthcare astatine 17%. Its apical positions—Interdigital Inc (NASDAQ:IDCC), Caretrust Reit Inc (NYSE:CTRE), and Sitime Corp (NASDAQ:SITM)—are likewise tiny successful weight. There are nary leverage, currency, oregon ESG quirks for either fund.

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Investors seeking vulnerability to U.S. small-cap stocks would beryllium omniscient to see State Street SPDR S&P 600 Small Cap Growth ETF (SLYG) and Invesco S&P SmallCap 600 Pure Growth ETF (RZG). That said, determination are immoderate differences they should beryllium alert of betwixt these 2 exchange-traded funds (ETFs).

First off, SLYG wins the head-to-head matchup successful respective cardinal respects. SLYG has a importantly little disbursal ratio (0.15% versus 0.35%). It besides has acold much AUM ($4.0 cardinal vs. $0.1 billion). That origin is peculiarly important erstwhile buying oregon selling shares. The greater a fund’s AUM, the greater the ETF’s liquidity. In turn, investors volition find it easier to person their orders filled erstwhile buying oregon selling shares. Lastly, SLYG boasts a higher dividend output (0.8% vs. 0.4%).