Vanguard ETFs are popular with investors because of their low costs and broad market exposure. While both the Vanguard S&P 500 ETF (VOO) and Vanguard S&P 500 Growth ETF (VOOG) invest in S&P 500 companies, they follow different strategies. Using TipRanks’ ETF Comparison Tool, we have placed VOO and VOOG against each other to find the best Vanguard ETF for investors. According to TipRanks’ ETF analyst consensus, VOOG currently carries a Strong Buy rating with over 27% upside potential. VOO, meanwhile, has a Moderate Buy rating with 22% upside potential.
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VOO and VOOG – Major Differences
VOO tracks the S&P 500 and gives investors exposure to over 500 large U.S. companies. Meanwhile, VOOG focuses on the fastest-growing companies in the index with strong sales and earnings growth.
As a result, VOOG offers higher growth potential but comes with more risk and volatility, with a beta of 1.26. VOO, on the other hand, offers a more balanced and stable approach with a beta of 1.00.
Additionally, VOO has a very low expense ratio of 0.03%, making it an affordable way to invest in the U.S. stock market. In comparison, VOOG has an expense ratio of 0.07%.
VOO vs. VOOG: Key Differences in Their Holdings
VOO currently holds about 508 stocks and manages roughly $995.16 billion in assets. The fund’s top 10 holdings account for about 36.31% of the portfolio. It means a handful of mega-cap stocks have a major influence on the fund’s performance.
In contrast, VOOG holds 149 stocks and manages approximately $26.12 billion in assets. VOOG is more concentrated than VOO. Its top 10 holdings account for 56% of the portfolio, so the fund relies heavily on a small group of high-growth companies. This can lead to stronger gains when those stocks perform well. However, it also increases risk, as weak performance from a few major holdings can have a bigger impact on the ETF.
VOO’s top 5 positions are Nvidia (NVDA), Apple (AAPL), Microsoft (MSFT), Amazon (AMZN), and Alphabet (GOOGL). Meanwhile, VOOG’s top holdings are the same as VOO’s, along with other major names such as Broadcom (AVGO) and Micron (MU).
Conclusion
VOO is a solid choice for investors seeking broad market exposure with lower risk. Those willing to take on more risk for higher growth potential may prefer VOOG.