The Vanguard Small-Cap Growth ETF (VBK) has lower costs, higher liquidity, and broader diversification compared to the Invesco S&P SmallCap 600 Pure Growth ETF (RZG). While RZG has slightly outperformed VBK in recent returns, both funds have similar drawdowns and long-term growth rates. VBK has more stocks and a tech-heavy focus, while RZG leans towards healthcare.

VBK boasts a lower expense ratio of 0.07% and a higher dividend yield than RZG’s 0.35% expense ratio. With $39.7 billion in assets under management compared to RZG’s $108.6 million, VBK offers greater liquidity. The slightly higher dividend yield of VBK may attract income-seeking investors.

VBK tracks 579 U.S. small-cap growth companies with a sector tilt towards technology, industrials, and healthcare. In contrast, RZG focuses on the S&P SmallCap 600 Pure Growth Index, emphasizing healthcare, industrials, and financial services with only 131 holdings. RZG may be more sensitive to sector swings due to its concentrated portfolio.

Investors seeking small-cap growth exposure should consider the distinct approaches of VBK and RZG. VBK offers broad diversification, low costs, and high liquidity, making it suitable for long-term investors. RZG may appeal to those comfortable with higher fees and concentration risk seeking potential outperformance.

These ETFs provide exposure to small-cap growth stocks, with VBK offering broader diversification and lower costs, while RZG focuses on a smaller subset of stocks with strong growth characteristics. VBK is suitable for long-term investors, while RZG may attract those comfortable with higher fees and concentration risk.

Read more at Yahoo Finance: Vanguard’s VBK vs. Invesco’s RZG