VOO charges lower fees and offers higher dividends than VOOG. While VOOG outperformed in the past year, it experienced a larger drawdown over five years. VOOG focuses on technology and growth stocks, while VOO provides broader sector diversification. Comparing costs, performance, and holdings can help investors decide which ETF suits their needs.
VOO has a lower expense ratio of 0.03% compared to VOOG’s 0.07% and offers a higher dividend yield at 1.1% versus 0.5% for VOOG. VOO tracks the full S&P 500 Index, providing exposure across various sectors. On the other hand, VOOG isolates growth stocks, resulting in a more concentrated portfolio with higher tech exposure.
VOO holds 505 stocks, with a sector mix including technology, financial services, and consumer cyclical. Top holdings include NVIDIA, Apple, and Microsoft. VOOG has 212 holdings, with a heavier tech focus. Its top holdings are NVIDIA, Apple, and Microsoft, providing exposure to tech-driven growth trends but also amplifying sector risks.
Investors seeking stability and broad diversification may prefer VOO, while those willing to take on more risk for growth may opt for VOOG. VOO has a lower max drawdown, making it suitable for long-term, low-risk investing. VOOG’s heavier tech weighting offers potential for outperformance but comes with higher expenses and risks.
Read more at Yahoo Finance: Better Vanguard ETF: VOO vs. VOOG
