The Vanguard S&P 500 Growth ETF (VOOG +1.32%) and the Vanguard S&P 500 ETF (VOO +0.89%) both aim to capture U.S. large-cap equity performance, but VOOG narrows in on S&P 500 growth constituents, while VOO holds all S&P 500 names.

This match-up highlights key contrasts in cost, returns, risk, and portfolio makeup that could matter for investors deciding between growth concentration and broad-market exposure.

Snapshot (cost & size)

Beta measures price volatility relative to the S&P 500. The 1-yr return represents total return over the trailing 12 months.

VOO is more affordable with a lower expense ratio, and it also offers a higher dividend yield. VOOG, on the other hand, comes at a slight premium for its growth focus and recent outperformance.

Performance & risk comparison

What's inside

VOO tracks the S&P 500 Index, holding 505 companies and spanning all sectors of the market. Its top industries include technology (making up 37% of the fund), financial services (13%), and consumer cyclical (11%), and its top holdings are Nvidia, Apple, and Microsoft.

VOOG, in contrast, narrows the focus to S&P 500 growth stocks, resulting in a portfolio where technology dominates at 45% of assets, followed by communication services (16%) and consumer cyclical (12%). Its top positions match VOO's, but they make up a larger portion of the portfolio -- highlighting a heavier tech tilt.

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What this means for investors

VOO and VOOG are both fantastic ETFs for many investors, but their differences in goals and portfolio composition give each of them unique strengths and weaknesses.

VOO tracks the entire S&P 500, aiming to replicate the index's performance. While it does lean heavily toward the tech industry, it's less tilted than VOOG -- which can help minimize the volatility that tech stocks are known for.

VOOG is more concentrated, comprising only 217 stocks with higher growth potential. This narrower focus has led to higher total returns than VOO over the past 12 months and five years, but it's also resulted in steeper drawdowns and more significant price fluctuations.

The top three holdings are the same across both funds, but their allocations set them apart. VOO's top stocks combined make up 21.95% of total assets, while VOOG's make up 27.23%. This top-heavy tilt can make VOOG more lucrative when these stocks are thriving, but it can also lead to rougher downturns when they stumble.

Between the two, VOOG is the higher-risk, higher-reward ETF. Risk-tolerant investors seeking a growth ETF with a history of above-average earnings may prefer VOOG's concentrated growth strategy, while those looking for greater stability and diversification might opt for VOO instead.

Glossary

ETF: Exchange-traded fund, a basket of securities traded on an exchange like a stock.
Expense ratio: The annual fee, as a percentage of assets, that a fund charges investors for management and operating costs.
Dividend yield: Annual dividends paid by a fund expressed as a percentage of its share price.
Growth stocks: Companies expected to grow earnings faster than the market average, often reinvesting profits instead of paying dividends.
Sector diversification: Investment spread across different industries to reduce risk from any single sector.
Liquidity: How easily an asset can be bought or sold in the market without affecting its price.
AUM (Assets Under Management): The total market value of assets a fund manages on behalf of investors.
Beta: A measure of an investment's volatility compared to the overall market; higher beta means greater price swings.
Max drawdown: The largest percentage drop from a fund's peak value to its lowest point over a specific period.
Total return: The investment's price change plus all dividends and distributions, assuming those payouts are reinvested.
Constituents: The individual stocks or securities that make up an index or fund.