The Vanguard Growth ETF (VUG) focuses on large-cap U.S. growth stocks, predominantly in the technology sector. In contrast, the Invesco S&P 500 Equal Weight ETF (RSP) evenly distributes weight across all S&P 500 companies, leading to a more balanced sector allocation.

VUG has a lower expense ratio of 0.04%, while RSP’s expense ratio is 0.20%. VUG also boasts a higher 1-year return of 21.14% compared to RSP’s 13.23% return. However, RSP offers a higher dividend yield of 1.64% compared to VUG’s 0.41%.

RSP holds 504 stocks with equal weight allocation, while VUG has just 160 stocks with a heavier focus on technology. RSP’s top three holdings make up less than 1% of its portfolio, while VUG’s top three holdings comprise over 32% of its assets, making it more concentrated in a few large companies.

Investors looking to minimize fees may prefer VUG due to its lower expense ratio, while those seeking income may lean towards RSP for its higher dividend yield. Each fund appeals to different types of investors based on their risk tolerance and investment goals.

Read more at Yahoo Finance: How Tech-Heavy Growth Compares to Balanced S&P 500 Diversification