For investors navigating the U.S. equity market, Vanguard’s VOO (Vanguard S&P 500 ETF) and VOOG (Vanguard S&P 500 Growth ETF) offer distinct pathways: broad market exposure versus a focused bet on growth. While both track segments of the S&P 500, their underlying methodologies, cost structures, and portfolio concentrations create divergent risk-reward profiles for 2025 and beyond.
- Issuer: Both are issued by Vanguard.
- Expense Ratio: VOO 0.03%; VOOG 0.07%.
- 1-Year Return (as of ): VOOG 19.3%; VOO 15.4%.
- Dividend Yield: VOO 1.1% (as of ); VOOG 0.5% (as of ).
- Beta (5-year weekly returns relative to S&P 500): VOOG 1.10; VOO 1.00.
- Assets Under Management (AUM): VOOG $21.7 billion (as of ); VOO $1.5 trillion (as of ).
- Max Drawdown (5 years): VOOG (32.73%); VOO (24.52%).
- Growth of $1,000 over 5 years: VOOG $1,920; VOO $1,826.
- VOO Portfolio: Replicates the full S&P 500 Index with 505 stocks. Sector mix: Technology 37%, Financial Services 12%, Consumer Cyclical 11%. Top holding: NVIDIA at 6.25%.
- VOOG Portfolio: Tracks the S&P 500 Growth Index, concentrating on 212 growth stocks. Sector mix: Technology 58%, Consumer Cyclical 12%, Financial Services 10%. Top three holdings: NVIDIA 13.53%, Apple 5.96%, Microsoft 5.96%.
VOOG’s higher expense ratio of 0.07% compared to VOO’s 0.03% reflects its more specialized focus, though both are considered low-cost for ETFs. While seemingly small, these differences can compound significantly over long investment horizons, impacting net returns. VOOG’s superior 1-year return of 19.3% and greater 5-year growth of $1,000 to $1,920 underscore the potential for higher gains when growth stocks outperform. This performance is largely driven by its concentrated exposure to the technology sector (58%), which aligns with the S&P 500 Growth Index methodology identifying companies with strong sales, earnings, and price momentum. However, this concentration also leads to higher volatility, as evidenced by VOOG’s beta of 1.10 and a larger 5-year maximum drawdown of (32.73%) compared to VOO’s 1.00 beta and (24.52%) drawdown.
Despite VOOG’s recent outperformance, its higher volatility and sector concentration present amplified risks. A downturn in the technology sector or underperformance of its top holdings (NVIDIA, Apple, Microsoft) could disproportionately impact VOOG’s returns. VOO, tracking the entire S&P 500, offers broader diversification across 11 GICS sectors and 505 companies, inherently smoothing out sector-specific fluctuations. Its lower expense ratio and higher dividend yield provide a more stable, albeit potentially slower, compounding growth profile, making it a robust core holding for broad market exposure.
Investors should monitor several factors when choosing between these ETFs. Key indicators include interest rate movements, as rising rates can disproportionately affect growth stocks by diminishing the present value of future earnings. The performance of the technology sector, particularly large-cap tech, will continue to be a primary driver for VOOG. For VOO, broader economic indicators such as GDP growth, inflation, and corporate earnings across diverse sectors will be more indicative of its trajectory. Ongoing shifts in S&P Dow Jones Indices’ growth and value methodologies could also influence portfolio composition, warranting close attention to ensure alignment with investment objectives.
| Metric | VOOG | VOO |
|---|---|---|
| Issuer | Vanguard | Vanguard |
| Expense ratio | 0.07% | 0.03% |
| 1-yr return (as of Dec. 18, 2025) | 19.3% | 15.4% |
| Dividend yield | 0.5% | 1.1% |
| Beta | 1.10 | 1.00 |
| AUM | $21.7 billion | $1.5 trillion |
| Metric | VOOG | VOO |
|---|---|---|
| Max drawdown (5 y) | (32.73%) | (24.52%) |
| Growth of $1,000 over 5 years | $1,920 | $1,826 |
Follow us on Bluesky , LinkedIn , and X to Get Instant Updates
