VUG vs. IWO: Which Growth ETF Is Better for Investors Right Now?
Key takeaways
- Investors seeking growth can approach the market through different lenses.
- Beta measures price volatility relative to the S&P 500; beta is calculated from five-year monthly returns.
- The Vanguard fund maintains a clear cost advantage with an expense ratio of 0.03%, compared to 0.24% for the iShares fund.
VUG ^RUT ^GSPC Vanguard Growth ETF (NYSEMKT:VUG) provides low-cost exposure to large-cap giants, whereas i Shares Russell 2000 Growth ETF (NYSEMKT:IWO) targets smaller, high-growth companies with a more diversified sector mix.
Investors seeking growth can approach the market through different lenses. While VUG tracks established industry leaders that dominate their fields, IWO looks at the more volatile small-cap segment. This comparison explores whether the premium cost of the i Shares fund is justified by its unique market positioning.
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.