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

Core Viewpoint - The State Street SPDR S&P 600 Small Cap Growth ETF (SLYG) and the Invesco S&P SmallCap 600 Pure Growth ETF (RZG) are both focused on U.S. small-cap growth stocks, but SLYG offers lower costs, better liquidity, and a more balanced sector exposure compared to RZG [1][2]. Cost Comparison - SLYG has an expense ratio of 0.15%, while RZG has a higher expense ratio of 0.35% [3][4]. - SLYG has assets under management (AUM) of $4.0 billion, significantly higher than RZG's AUM of $108.9 million, indicating better liquidity for SLYG [3][9]. Performance Metrics - As of March 11, 2026, SLYG has a one-year return of 18.3%, compared to RZG's 23.6% [3]. - Over five years, SLYG experienced a maximum drawdown of 29.18%, while RZG had a higher drawdown of 38.31% [5]. - An investment of $1,000 in SLYG would grow to $1,086 over five years, whereas the same investment in RZG would grow to $1,042 [5]. Sector Exposure - RZG holds 130 stocks with a significant tilt towards healthcare (24%), technology (19%), and industrials (16%) [6]. - SLYG tracks a broader index with 339 holdings and a more balanced sector mix: industrials and technology at 19% each, and healthcare at 17% [7]. Dividend Yield - SLYG offers a higher dividend yield of 0.8%, compared to RZG's yield of 0.4%, making SLYG more attractive for income-focused investors [4][10].