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Vanguard S&P 500 ETF vs Vanguard S&P 500 Growth ETF
VS
Comparative Analysis
VOOG wins due to its superior growth orientation and stronger recent performance, despite VOO's lower expense ratio and broader diversification. VOOG's focus on large-cap growth stocks positions it for higher potential returns in the current market environment. While VOO offers a more comprehensive market exposure, VOOG's concentrated bet on growth sectors has yielded better results over the past year and year-to-date. Investors prioritizing capital appreciation will find VOOG more attractive, while those seeking broad market stability and lower costs may lean towards VOO. Ultimately, VOOG's higher growth trajectory makes it the preferred choice for this analysis.
Key Differentiator
The primary differentiator between VOO and VOOG is their investment objective and sector concentration. VOOG is specifically designed to track the performance of large-cap U.S. growth stocks, leading to a heavy weighting in technology and communication services. VOO, on the other hand, tracks the S&P 500 Index, offering broader diversification across all market capitalizations and sectors, including value stocks. This difference in focus has led to VOOG's superior performance in recent years, particularly during periods of strong tech sector growth, while VOO provides a more stable, market-wide exposure.
Joint Outlook
The outlook for both VOO and VOOG is largely dependent on the broader macroeconomic environment, particularly interest rate policy and inflation trends. For VOOG, a continued environment favoring growth stocks, potentially driven by technological innovation and strong corporate earnings, would be beneficial. Its year-to-date return of 13.59% suggests positive momentum. Conversely, a rising interest rate environment or a rotation into value stocks could hinder VOOG's performance. VOO, representing the broader market, is expected to track overall economic growth. Its year-to-date return of 13.11% indicates steady, albeit less aggressive, performance. A potential scenario for VOO involves moderate economic expansion and stable inflation, leading to consistent, albeit lower, returns compared to VOOG's potential upside.
Price Analysis Comparison
Asset Metrics
| Metric | VOO | VOOG |
|---|---|---|
| 52 Week Range | $578.46 - $716.39 | $64.99 - $86.14 |
| Prev. Close | $700.87 | $83.76 |
| Market Cap | N/A | 1.32B |
| 24h Volume | 18.30M | 893.70K |
VOOG's valuation is inherently higher due to its growth mandate, reflected in its higher concentration in technology and communication services sectors. VOOG's fund type 'Large Growth' implies a premium valuation compared to VOO's 'Large Blend'. VOOG's higher trailing returns, particularly over the 1-year and 3-year periods, suggest that investors are currently willing to pay this premium for its growth potential. VOO, as a broad market tracker, offers a more balanced valuation profile across various market segments. The difference in expense ratios, with VOO at 0.03% and VOOG at 0.07%, means VOO is cheaper to hold, but this cost advantage does not outweigh VOOG's superior performance.
Market Performance
| Metric | VOO | VOOG |
|---|---|---|
| Volatility (30D) | 12.17% | 17.37% |
| 24h Range | $695.54 - $698.64 | $82.83 - $83.34 |
| Market Strength (RSI) | 45.1 | 49.3 |
| Trend (SMA 50) | Bearish | Bullish |
VOOG has shown higher recent volatility (17.4%) compared to VOO (12.2%). VOO is in a Bearish trend, while VOOG remains Bullish relative to its 50-day average.
Technical Indicators
| Indicator | VOO | VOOG |
|---|---|---|
| RSI (14) | 45.10 | 49.32 |
| 50-Day MA | $696.98 | $82.94 |
| 200-Day MA | $656.28 | $77.39 |
VOOG is currently showing slightly stronger momentum than VOO, with a higher RSI of 49.32 compared to VOO's 45.1. Both ETFs are trading below their 20-day exponential moving averages, indicating short-term weakness, with VOOG's EMA_20 at 83.75 and VOO's at 703.29. VOOG's 50-day SMA is 82.94, placing its current price slightly above it, while VOO's 50-day SMA is 696.98, with its current price slightly below it. Both ETFs exhibit weak stochastic readings, with VOOG at 18.53 and VOO at 6.48, suggesting they are in oversold territory, but this can persist in trending markets. The MACD for VOOG is 0.18, indicating minimal upward momentum, while VOO's MACD is 1.13, also suggesting limited positive momentum.
AI Analyst Sentiment
Technical rating — based on current price action versus moving averages and momentum. This measures short-term chart trend, not analyst opinion or company fundamentals.
VOO
Technical Score: 75/100
VOOG
Technical Score: 75/100
As ETFs, VOO and VOOG do not have analyst ratings or median price targets in the traditional sense. Sentiment is inferred from their performance and fund flows, which are not detailed in the provided data. However, VOOG's higher trailing returns, particularly over the 1-year and 3-year periods, suggest positive investor sentiment and demand for growth-oriented assets. VOO, representing the broader market, likely experiences more consistent inflows due to its diversification and lower cost, but VOOG's outperformance may be attracting more focused attention from growth-seeking investors.
Risk Stratification
| Metric | VOO | VOOG |
|---|---|---|
| Sharpe Ratio | 0.72 | 0.73 |
VOOG carries higher sector-specific risk due to its significant concentration in technology (51.7%). A downturn in the tech sector could disproportionately impact VOOG's performance. Its growth-oriented nature also means it may be more sensitive to rising interest rates and changes in investor risk appetite. VOO, with its broader diversification across 11% Financial Services, 9.9% Communication Services, and 9.5% Consumer Cyclical, offers more balanced risk exposure. However, VOO's performance is tied to the overall health of the U.S. economy and market, making it susceptible to broad market downturns. The higher expense ratio of VOOG (0.07%) compared to VOO (0.03%) represents a small but persistent drag on returns.
Comparative ProTips
- Consider VOOG if your investment horizon is long and you are comfortable with the higher volatility associated with growth stocks.
- For investors prioritizing lower costs and broad market diversification, VOO remains a compelling choice.
- Monitor the technology sector closely, as its performance will significantly influence VOOG's returns.
Monte Carlo Projection (10yr)
Actionable Trade Plans
Compare entry, exit, and risk management levels for both assets
Select Your Trade Bias
Risk Tolerance
Conservative
3%
Aggressive
Portfolio Value
$
✎
Position Size: $200 - $300 per asset
VOO
Current: $696.65
ENTRY ZONES
Conservative
$661.82
Aggressive
$696.65
RISK MANAGEMENT
STOP LOSS
$641.96
MAX LOSS
-3%
Volatility-Adjusted Stop Loss
Calculated based on volatility and technical support levels.
Profit Targets (Based on Conservative)
+5%
$694.91
+10%
$728.00
+15%
$761.09
VOOG
Current: $83.07
ENTRY ZONES
Conservative
$78.92
Aggressive
$83.07
RISK MANAGEMENT
STOP LOSS
$76.55
MAX LOSS
-3%
Volatility-Adjusted Stop Loss
Calculated based on volatility and technical support levels.
Profit Targets (Based on Conservative)
+5%
$82.86
+10%
$86.81
+15%
$90.75
Calculate Your Trade
Disclaimer
This comparison involves assets with varying risk profiles. The content is for educational purposes only. Identifying the stronger asset is based on relative strength (RS) and technical convergence. Past correlation does not guarantee future lockstep movement. Trading involves risk of loss. Note: The AI favored VOOG based on growth trajectory. This is valid for the specified timeframe only.
Frequently Asked Questions
Which ETF offers lower costs, VOO or VOOG?+
VOO offers a lower expense ratio of 0.03% compared to VOOG's 0.07%. This means for every $10,000 invested, VOO costs $3 annually, while VOOG costs $7 annually.
What are the key risks for VOO versus VOOG?+
VOOG's primary risk is its heavy concentration in the technology sector, making it vulnerable to sector-specific downturns. VOO's risk is more diversified, tied to overall market performance, but it lacks the concentrated growth potential of VOOG.
How do VOO and VOOG compare in terms of dividend yield?+
VOO offers a higher dividend yield of approximately 1.05% compared to VOOG's yield of about 0.45%.
Which ETF has shown better recent performance?+
VOOG has demonstrated stronger trailing returns over the past year (22.22% vs 20.34%) and year-to-date (13.59% vs 13.11%), indicating a growth-driven outperformance.
What is the primary investment objective of each ETF?+
VOO aims to track the broad U.S. stock market (S&P 500), offering diversified exposure. VOOG specifically targets large-cap U.S. growth stocks, focusing on companies expected to grow at an above-average rate.
How do their sector exposures differ?+
VOOG is heavily weighted towards Technology (51.7%) and Communication Services (15.78%), while VOO has a more balanced sector allocation with Technology at 37.43% and Financial Services at 12.19%.
Which ETF is more suitable for a growth-focused investor?+
VOOG is more suitable for growth-focused investors due to its explicit mandate to track large-cap growth stocks and its resulting sector concentration in high-growth areas.