The Vanguard 500 Index Fund ETF (VOO) Offers Broader Exposure While the Vanguard Growth Index Fund ETF (VUG) Delivers Higher Growth

• VOO holds a overmuch broader handbasket of large-cap U.S. stocks and offers a higher dividend output than VUG

• VUG has delivered stronger full returns implicit 1 and 5 years but with higher volatility and a steeper maximum drawdown

• Both funds are low-cost and highly liquid, though VUG leans much heavy into the exertion sector

• These 10 stocks could mint the adjacent question of millionaires ›

The Vanguard Growth ETF (NYSEMKT:VUG) and Vanguard S&P 500 ETF (NYSEMKT:VOO) some support costs debased and way large-cap U.S. stocks, but VOO casts a wider nett and pays a higher dividend, portion VUG focuses connected faster-growing companies and shows higher caller returns with much risk.

Both funds purpose to supply vulnerability to the U.S. banal market’s largest companies, but their approaches differ: VUG zeroes successful connected maturation stocks with a exertion tilt, portion VOO tracks the S&P 500 for wide large-cap diversification. Here’s however they stack up for investors comparing the two.

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

VOO comes retired somewhat up connected expenses and offers a higher yield, making it much affordable to clasp and perchance much appealing for income-focused investors.

VOO invests successful each 505 companies of the S&P 500, providing vulnerability crossed sectors: 36% technology, 13% fiscal services, and 11% user cyclical. Its largest positions are NVIDIA (NASDAQ:NVDA), Apple (NASDAQ:AAPL), and Microsoft (NASDAQ:MSFT), each representing implicit 6% of the fund. With implicit 15 years nether its belt, VOO is designed for those seeking broad, low-cost U.S. equity exposure.

VUG, by contrast, tilts much aggressively toward growth: exertion makes up 52% of its portfolio, with further value successful connection services and user cyclical stocks. Its apical holdings—NVIDIA, Apple, and Microsoft—feature overmuch higher weightings. The money holds 166 stocks, truthful it is much concentrated and whitethorn determination much dramatically with the fortunes of ample tech companies.

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The Vanguard 500 Index Fund ETF and the Vanguard Growth Index Fund ETF some connection fees truthful debased that astir idiosyncratic investors request a microscope to spot the fiscal quality erstwhile comparing the two.