Vanguard S&P 500 Growth ETF vs iShares Russell 2000 Growth ETF: Which Growth Stock Fund Is the Better Buy?
Sector concentration and risk profiles set these two growth ETFs apart, offering distinct approaches for investors seeking capital appreciation.
Overview
Not all stock ETFs are created equal. The Vanguard S&P 500 Growth ETF (NYSEMKT:VOOG) offers low-cost exposure to established large-cap growth giants, while iShares Russell 2000 Growth ETF (NYSEMKT:IWO) targets the more volatile small-cap growth sector.
Both funds aim to capture capital appreciation by selecting stocks with strong growth characteristics. However, they fish in very different ponds: one focuses on established giants in the S&P 500, while the other focuses on smaller companies. Choosing between them depends on an investor's preference for large-cap stability versus small-cap agility.
Details
The Vanguard fund is significantly more affordable, with an expense ratio of 0.07%, less than one-third of the 0.24% charged by the iShares fund. Payouts are not the primary focus for either, but both maintain a trailing dividend yield below 1%.
Source
Originally published at www.fool.com.