The Vanguard Small-Cap Growth ETF (VBK) charges a lower expense ratio and has a larger asset base than the State Street SPDR S&P 600 Small Cap Growth ETF (SLYG). VBK has a higher 1-year total return but also a deeper five-year drawdown, with both funds favoring technology but VBK leaning even more heavily into this sector.

VBK tracks 579 U.S. small-cap growth stocks with top holdings in technology, industrials, and healthcare. SLYG covers 336 stocks with less weight on technology and top positions in pharmaceuticals, construction, and machinery. Both funds offer exposure to small-cap growth companies without leverage or currency hedges.

VBK is more affordable with a lower expense ratio compared to SLYG, though SLYG offers a slightly higher dividend yield. Despite higher volatility due to its tech emphasis, VBK’s larger AUM provides greater liquidity. SLYG’s lower tech exposure contributed to a lower 1-year return but decreased volatility.

Investors choosing between VBK and SLYG must consider factors like expense ratio, volatility, sector exposure, and historical performance. VBK suits those prioritizing cost efficiency and liquidity, while SLYG may appeal to those seeking lower volatility and alternative sector exposure. Both ETFs offer exposure to smaller growth companies in the U.S. market.

Read more at Yahoo Finance: Vanguard’s VBK vs. State Street’s SLYG