Vanguard S&P 500 Growth vs. Invesco SmallCap Revenue: How Do These ETFs Stack Up?

Investors choosing betwixt Invesco S&P SmallCap 600 Revenue ETF (NYSEMKT:RZG) and Vanguard S&P 500 Growth ETF (NYSEMKT:VOOG) indispensable measurement the higher humanities returns of large-cap maturation against the caller momentum of small-cap revenue-weighted stocks.

Both funds people growth, but they look for it successful precise antithetic corners of the market. While RZG uses a revenue-weighted strategy to filter the small-cap universe, VOOG tracks the growth-oriented subset of the S&P 500, offering a accepted large-cap maturation profile.

Snapshot (cost & size)

Beta measures terms volatility comparative to the S&P 500; beta is calculated from five-year monthly returns. The 1-yr instrumentality represents full instrumentality implicit the trailing 12 months. Dividend output is the trailing-12-month organisation yield.

The Vanguard money is much affordable, with an disbursal ratio of 0.07% compared to 0.35% for the Invesco ETF. VOOG besides offers a somewhat higher trailing-12-month dividend  yield.

Performance & hazard examination

What's wrong

The Vanguard ETF provides concentrated vulnerability to large-cap leaders, with exertion making up 53%, connection services astatine 17%, and user cyclical astatine 9% of the portfolio. Its largest positions see Nvidia (NASDAQ:NVDA) astatine 14.27%, Microsoft (NASDAQ:MSFT) astatine 9.3%, and Apple (NASDAQ:AAPL) astatine 6.37%. The money holds 146 stocks and was launched successful 2010. It has paid $0.37 per stock implicit the trailing 12 months, which connected its caller ~$83 stock terms works retired to a 0.50% yield.

Invesco's money takes a antithetic way by weighting 125 small-cap stocks by revenue. Sector vulnerability is much balanced, with healthcare astatine 23%, exertion astatine 17%, and industrials astatine 17%. Its largest positions see ACM Research (NASDAQ:ACMR) astatine 3.29%, Powell Industries (NASDAQ:POWL) astatine 2.13%, and StoneX Group (NASDAQ:SNEX) astatine 1.95%. It was launched successful 2006. The money has paid $0.30 per stock implicit the trailing 12 months, which connected its caller ~$73 stock terms works retired to a 0.40% yield.

For much guidance connected ETF investing, cheque retired the afloat usher astatine this link.

What this means for investors

I deliberation VOOG looks much charismatic here. The Vanguard money has a little disbursal ratio, higher dividend yield, and much stocks than the Invesco ETF. I volition concede VOOG's portfolio, contempt the greater fig of equities, is beauteous concentrated. Nvidia, Apple, and Microsoft marque up astir one-third of the fund. In contrast, nary presumption successful RZG exceeds 4%. But VOOG has a amended semipermanent instrumentality than RZG.