Small-Cap Growth ETFs: SLYG Boasts Higher Yield, While VBK Has Lower Fees

Vanguard Small-Cap Growth ETF (NYSEMKT:VBK) keeps costs debased and has outperformed connected full returns recently, while State Street SPDR S&P 600 Small Cap Growth ETF (NYSEMKT:SLYG) pays a spot much successful dividends and features little terrible drawdowns.

Both VBK and SLYG purpose to seizure the show of U.S. small-cap maturation stocks, but they disagree successful cost, assemblage exposures, and caller performance. This examination looks astatine cardinal metrics, including expenses, yield, risk, and portfolio makeup, to item which money whitethorn entreaty depending connected circumstantial capitalist priorities.

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

VBK is much affordable successful presumption of fees with an disbursal ratio of 0.05% compared to SLYG’s 0.15%, portion SLYG offers a somewhat higher dividend output astatine 0.8% versus VBK’s 0.5%—a humble vantage for those seeking existent income.

SLYG tracks an S&P scale focused connected small-cap maturation stocks with 339 holdings, balancing its apical assemblage weights betwixt industrials (19%), exertion (19%), and healthcare (17%). Its largest positions arsenic of the latest information are Interdigital Inc., CareTrust REIT Inc.(NYSE:CTRE), and Sitime Corp.(NASDAQ:SITM), each with a weighting of conscionable implicit 1%. The money has been astir for much than 25 years, offering a agelong show way record.

VBK, by contrast, holds 579 stocks—offering broader diversification—and leans much heavy into exertion (26%) and industrials (23%), with healthcare astatine 17%. Its apical holdings include Rocket Lab Corp (NASDAQ:RKLB), Comfort Systems USA Inc (NYSE:FIX), and Sandisk Corp (NASDAQ:SNDK), each with astir 1.2% of assets. There are nary antithetic features oregon quirks called retired for either ETF.

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

Both Vanguard Small-Cap Growth ETF (VBK) and State Street SPDR S&P 600 Small Cap Growth ETF (SLYG) present vulnerability to small-cap maturation stocks. That said, determination are immoderate cardinal differences betwixt them.

VBK holds astir doubly arsenic galore stocks (579) arsenic SLYG, which gives it greater diversification. As for fees, VBK comes retired connected apical with a little disbursal ratio of 0.05%. It has besides performed amended implicit the past year, with a 23.0% one-year return, compared to 18.3% for SLYV. Finally, VBK has greater liquidity, with 10x SLYV’s AUM ($40 cardinal vs. $4 billion).