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VOO expenses a decrease expense ratio and delivers the next dividend yield than VOOG.
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VOOG has outperformed over the previous yr however skilled a deeper most drawdown over 5 years.
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VOOG leans closely into expertise and development shares, whereas VOO provides broader sector diversification.
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The Vanguard S&P 500 Development ETF (NYSEMKT:VOOG) focuses on development shares and has outperformed over the previous yr, whereas the Vanguard S&P 500 ETF (NYSEMKT:VOO) expenses much less, yields extra, and supplies broader U.S. market publicity.
Each VOOG and VOO goal to trace large-cap U.S. shares, however their approaches differ. VOOG isolates the expansion phase of the S&P 500 Index (SNPINDEX:^GSPC), whereas VOO tracks the complete S&P 500 Index. For traders weighing targeted development publicity towards whole market breadth, evaluating their prices, efficiency, and portfolio make-up might help make clear which can match finest.
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Metric
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VOOG
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VOO
|
|
Issuer
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Vanguard
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Vanguard
|
|
Expense ratio
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0.07%
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0.03%
|
|
1-yr return (as of Dec. 18, 2025)
|
19.3%
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15.4%
|
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Dividend yield
|
0.5%
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1.1%
|
|
Beta
|
1.10
|
1.00
|
|
AUM
|
$21.7 billion
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$1.5 trillion
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Beta measures worth volatility relative to the S&P 500; beta is calculated from five-year weekly returns. The 1-yr return represents whole return over the trailing 12 months.
VOO is extra reasonably priced to carry, with a 0.03% expense ratio in comparison with 0.07% for VOOG, and it additionally pays out the next dividend yield at 1.1% versus 0.5% for VOOG.
|
Metric
|
VOOG
|
VOO
|
|
Max drawdown (5 y)
|
(32.73%)
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(24.52%)
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Development of $1,000 over 5 years
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$1,920
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$1,826
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VOO seeks to copy the complete S&P 500 Index, holding 505 shares as of its 15.3-year monitor report. Its sector combine is broad: expertise (37%), monetary providers (12%), and client cyclical (11%). Prime holdings embrace NVIDIA (NASDAQ:NVDA) at 7.38%, Apple (NASDAQ:AAPL) at 7.08%, and Microsoft (NASDAQ:MSFT) at 6.25%. This breadth supplies publicity throughout the U.S. financial system and will assist clean sector-specific volatility over time.
VOOG, against this, isolates the S&P 500’s development names, concentrating 58% in expertise, 12% in client cyclicals, and 10% in monetary providers. Its high three holdings are NVIDIA at 13.53%, Apple at 5.96%, and Microsoft at 5.96%. This leads to a extra concentrated portfolio (212 holdings) with better publicity to tech-driven development tendencies, but additionally amplifies sector and stock-specific dangers.
For extra steerage on ETF investing, take a look at the complete information at this hyperlink.
The Vanguard S&P 500 Development ETF (VOOG) and the Vanguard S&P 500 ETF (VOO) are designed for several types of traders. VOO is for individuals who need extra stability, which is offered by the ETF’s broader inventory diversification and demonstrated by its decrease max drawdown.
VOOG is for individuals who are prepared to tackle extra danger for better development, however this tradeoff features a larger expense ratio. VOOG’s dividend is decrease as a consequence of its heavy weighting in the direction of tech shares, which are inclined to pay decrease or no dividends in comparison with different industries. The truth that Nvidia is VOOG’s high holding at 13.53%, which is greater than double the subsequent two holdings, means the ETF’s fortunes are extra impacted by Nvidia’s efficiency in comparison with VOO.
VOOG’s outsized concentrate on the tech sector, particularly in gentle of the rising synthetic intelligence trade, provides it the potential to outperform the broader S&P 500 Index. Nonetheless, for traders who desire a low-risk, long-term funding at a decrease expense ratio, the VOO ETF is an efficient choose.
Expense ratio: The annual payment, as a share of belongings, that traders pay to personal a fund.
Dividend yield: The annual dividends paid by a fund, expressed as a share of its present worth.
Beta: A measure of a fund’s volatility in comparison with the general market; larger than 1 means extra risky.
Belongings Below Administration (AUM): The entire market worth of all belongings a fund manages for traders.
Max drawdown: The biggest share drop from a fund’s peak worth to its lowest level over a particular interval.
Development inventory: A inventory anticipated to develop earnings or income quicker than the general market.
Sector diversification: Spreading investments throughout completely different trade sectors to scale back danger.
Portfolio focus: The diploma to which a fund’s belongings are invested in a small variety of holdings or sectors.
Client cyclical: Firms whose gross sales and income are inclined to rise and fall with the financial cycle, like retailers and automakers.
Whole return: The funding’s worth change plus all dividends and distributions, assuming these payouts are reinvested.
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Robert Izquierdo has positions in Apple, Microsoft, and Nvidia. The Motley Idiot has positions in and recommends Apple, Microsoft, Nvidia, and Vanguard S&P 500 ETF. The Motley Idiot recommends the next choices: lengthy January 2026 $395 calls on Microsoft and quick January 2026 $405 calls on Microsoft. The Motley Idiot has a disclosure coverage.
Higher Vanguard ETF: VOO vs. VOOG was initially revealed by The Motley Idiot
