Which Is the Better Growth-Focused ETF, Vanguard's Large-Cap VONG or State Street's Small-Cap SLYG?
Key takeaways
- Growth investing strategies often diverge significantly based on the size of the underlying businesses.
- Beta measures price volatility relative to the S&P 500; beta is calculated from five-year monthly returns.
- The Vanguard fund is significantly more affordable, sporting an expense ratio of 0.06% compared to the 0.15% charged by the State Street fund.
Growth investing strategies often diverge significantly based on the size of the underlying businesses. While VONG tracks the largest and most dominant U.S. growth leaders, SLYG focuses on small-cap companies with high momentum. This comparison helps clarify which market segment and risk profile may better suit your long-term financial goals.
Beta measures price volatility relative to the S&P 500; beta is calculated from five-year monthly returns. The 1-yr return represents total return over the trailing 12 months. Dividend yield is the trailing-12-month distribution yield.
The Vanguard fund is significantly more affordable, sporting an expense ratio of 0.06% compared to the 0.15% charged by the State Street fund. Over a decade, this 0.09 percentage point gap can result in noticeable differences in total returns for long-term investors. Additionally, the State Street fund currently offers a higher payout, with a 0.70% yield versus the 0.40% yield from the Vanguard fund.