Core Insights - The Vanguard S&P 500 Growth ETF (VOOG) focuses on growth stocks and has outperformed the Vanguard S&P 500 ETF (VOO) over the past year, but VOO offers lower costs, higher dividend yields, and broader market exposure [1][2] Cost and Size Comparison - VOOG has an expense ratio of 0.07% and VOO has a lower expense ratio of 0.03% - The one-year return for VOOG is 19.3% compared to 15.4% for VOO as of December 18, 2025 - VOO has a higher dividend yield of 1.1% versus 0.5% for VOOG - VOOG has assets under management (AUM) of $21.7 billion, while VOO has AUM of $1.5 trillion [3][4] Performance and Risk Comparison - The maximum drawdown over five years for VOOG is (32.73%) compared to (24.52%) for VOO - An investment of $1,000 in VOOG would grow to $1,920 over five years, while the same investment in VOO would grow to $1,826 [5] Portfolio Composition - VOO holds 505 stocks with a sector mix of 37% technology, 12% financial services, and 11% consumer cyclical, with top holdings including NVIDIA (7.38%), Apple (7.08%), and Microsoft (6.25%) [6] - VOOG concentrates 58% in technology, 12% in consumer cyclicals, and 10% in financial services, with top holdings being NVIDIA (13.53%), Apple (5.96%), and Microsoft (5.96%), resulting in a more concentrated portfolio of 212 holdings [7] Investor Implications - VOO is suitable for investors seeking stability through broader diversification and lower maximum drawdown [8] - VOOG is aimed at investors willing to accept higher risk for greater growth potential, albeit with a higher expense ratio and lower dividend yield [9][10]
Better Vanguard ETF: VOO vs. VOOG
The Motley Fool·2025-12-27 16:30