Comparing Vanguard S&P 500 Growth ETF vs. State Street S&P 600 Small Cap Growth ETF

The choice between the Vanguard S&P 500 Growth ETF (NYSEMKT:VOOG) and the State Street SPDR S&P 600 Small Cap Growth ETF (NYSEMKT:SLYG) depends on whether an investor prefers the stability and tech‑heavy exposure of large‑cap stocks or the higher growth potential—and volatility—of small‑cap companies.

These funds sit at opposite ends of the market‑capitalization spectrum. Although both target growth, they invest in different universes: one holds the largest U.S. corporations, while the other focuses on smaller firms with strong expansion prospects. This comparison examines their expenses, risk characteristics, and portfolio makeup.

Snapshot (cost & size)

Beta measures price volatility relative to the S&P 500, calculated from monthly returns over the fund’s history (up to five years). The 1‑year return reflects total return over the trailing 12 months. Dividend yield is the trailing‑12‑month distribution yield.

The Vanguard S&P 500 Growth ETF is the more cost‑effective choice, with an expense ratio of 0.07%—less than half of the State Street fund’s 0.15%. While both provide modest income, the difference in yield stems from their primary emphasis on capital appreciation.

Performance & risk comparison

What’s inside

The Vanguard S&P 500 Growth ETF holds 212 securities, with a heavy tilt toward technology (52%), communication services (16%), and consumer cyclical (9%). Its top holdings are NVIDIA Corp (NASDAQ:NVDA) at 13.64%, Microsoft Corp (NASDAQ:MSFT) at 7.80%, and Apple Inc (NASDAQ:AAPL) at 5.98%. Launched in 2010, the fund has distributed $0.37 per share over the past year; at its recent price of roughly $80.29, this equates to a 0.4% yield.

In contrast, the State Street SPDR S&P 600 Small Cap Growth ETF concentrates on smaller companies. Its leading holdings are Viasat Inc (NASDAQ:VSAT) at 1.15%, Corcept Therapeutics Inc (NASDAQ:CORT) at 1.06%, and Alkermes Plc (NASDAQ:ALKS) at 1.01%. The fund contains 350 positions, with a more balanced sector allocation: industrials (19%), technology (18%), and healthcare (17%). Introduced in 2000, it has paid $0.76 per share over the last twelve months; at a recent price of about $114.58, this yields 0.7%.

Which is the better buy

The Vanguard S&P 500 Growth ETF (VOOG) and the State Street SPDR S&P 600 Small Cap Growth ETF (SLYG) are both growth‑oriented exchange‑traded funds, but they pursue distinct strategies to generate returns. Let’s examine each fund separately.

VOOG is heavily weighted toward mega‑cap technology stocks. Just three companies—Apple, Microsoft, and Nvidia—represent roughly 27% of the portfolio. Sector‑wise, technology dominates at 67% of holdings, followed by financials (9%) and consumer durables (2%). Over 98% of the fund’s assets are invested in U.S. stocks. Over the past decade, VOOG has delivered a total return of 385%, corresponding to a compound annual growth rate (CAGR) of 17.1%. This outpaces the S&P 500’s 300% total return (14.9% CAGR) over the same period. The fund’s expense ratio is a low 0.07%.

SLYG, by contrast, targets the small‑ and mid‑cap growth segment, investing in companies with market capitalizations generally below $10 billion—for perspective, Microsoft’s market cap exceeds $2.8 trillion, illustrating the stark difference in scale. Its top sector exposures are technology (22%), financials (21%), and manufacturing (9%). Over the last ten years, SLYG has produced a total return of 182%, or a CAGR of 10.9%. While respectable, this lags behind both the S&P 500 and VOOG’s performance. The fund carries a somewhat higher expense ratio of 0.15%.

Both ETFs provide solid exposure to the growth portion of the equity market. VOOG outperforms SLYG in terms of returns and costs, yet SLYG offers a useful alternative for investors who wish to diversify away from the largest technology companies.

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