DIA vs. VOOG: How Dow Jones Stability Compares to S&P 500 Growth

Core Insights - The Vanguard S&P 500 Growth ETF (VOOG) and the SPDR Dow Jones Industrial Average ETF Trust (DIA) cater to different investor preferences, focusing on growth versus stability [1][2] Cost & Size Comparison - VOOG has a lower expense ratio of 0.07% compared to DIA's 0.16%, making it more cost-effective for investors [3] - VOOG has an AUM of $22 billion, while DIA has a larger AUM of $44 billion [3] - The one-year return for VOOG is 19.31%, significantly higher than DIA's 13.50% [3] - DIA offers a higher dividend yield of 1.43% compared to VOOG's 0.49%, appealing to income-focused investors [3] Performance & Risk Comparison - VOOG has a max drawdown of -32.74% over five years, while DIA's max drawdown is -20.75%, indicating higher volatility for VOOG [4] - An investment of $1,000 in VOOG would grow to $1,965 over five years, compared to $1,601 for DIA, showcasing VOOG's superior growth potential [4] Portfolio Composition - DIA consists of 30 blue-chip U.S. companies, with significant exposure to financial services (28%), technology (20%), and industrials (15%) [5] - VOOG tracks the S&P 500 Growth Index and holds 140 stocks, heavily weighted towards technology (49%), with notable holdings in Nvidia, Apple, and Microsoft [6] - The concentration in high-growth tech names in VOOG leads to different sector and risk profiles compared to DIA [6][8] Investor Implications - Investors seeking higher returns may prefer VOOG due to its growth focus, while those looking for stability might opt for DIA [9] - The fee structure favors VOOG, which charges $7 per year for every $10,000 invested, compared to DIA's $16 [9] - Despite its higher fees, DIA's stability and higher dividend yield may attract long-term passive income investors [10]