VOO and VOOG Provide S&P 500 Exposure, Yet One Presents Higher Earning Potential for Investors
Performance Comparison: VOOG has outperformed VOO over the past year with a 1-year return of 20.87% compared to VOO's 16.44%, but VOOG has a higher expense ratio (0.07% vs. 0.03%) and lower dividend yield (0.48% vs. 1.12%).
Portfolio Composition: VOOG focuses on S&P 500 growth stocks, with 45% in technology, while VOO offers broader sector diversification across all S&P 500 companies, making it less volatile.
Risk and Reward: VOOG is considered a higher-risk, higher-reward option due to its concentrated growth strategy, while VOO is more stable and suitable for investors seeking diversification.
Investor Appeal: VOO's larger size and liquidity (AUM of $1.5 trillion) may attract investors looking for ease of trading, whereas VOOG's concentrated approach may appeal to those willing to take on more risk for potentially higher returns.
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