VOO and VOOG Both Offer S&P 500 Exposure, But One Offers Greater Earning Potential for Investors

• VOOG has outperformed VOO implicit the past year, but it comes with a higher disbursal ratio and little dividend yield.

• VOOG leans much heavy into exertion stocks, portion VOO offers broader assemblage diversification crossed the S&P 500.

• VOO is acold larger and much liquid, which could entreaty to investors prioritizing easiness of trading and scalability.

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The Vanguard S&P 500 Growth ETF (NYSEMKT:VOOG) and the Vanguard S&P 500 ETF (NYSEMKT:VOO) some purpose to seizure U.S. large-cap equity performance, but VOOG narrows successful connected S&P 500 maturation constituents, portion VOO holds each S&P 500 names.

This match-up highlights cardinal contrasts successful cost, returns, risk, and portfolio constitution that could substance for investors deciding betwixt maturation attraction and broad-market exposure.

Beta measures terms volatility comparative to the S&P 500. The 1-yr instrumentality represents full instrumentality implicit the trailing 12 months.

VOO is much affordable with a little disbursal ratio, and it besides offers a higher dividend yield. VOOG, connected the different hand, comes astatine a flimsy premium for its maturation absorption and caller outperformance.

VOO tracks the S&P 500 Index, holding 505 companies and spanning each sectors of the market. Its apical industries see exertion (making up 37% of the fund), fiscal services (13%), and user cyclical (11%), and its apical holdings are Nvidia, Apple, and Microsoft.

VOOG, successful contrast, narrows the absorption to S&P 500 maturation stocks, resulting successful a portfolio wherever exertion dominates astatine 45% of assets, followed by connection services (16%) and user cyclical (12%). Its apical positions lucifer VOO's, but they marque up a larger information of the portfolio -- highlighting a heavier tech tilt.

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VOO and VOOG are some fantastic ETFs for galore investors, but their differences successful goals and portfolio creation springiness each of them unsocial strengths and weaknesses.

VOO tracks the full S&P 500, aiming to replicate the index's performance. While it does thin heavy toward the tech industry, it's little tilted than VOOG -- which tin assistance minimize the volatility that tech stocks are known for.