When it comes to choosing a growth stock ETF, investors often find themselves comparing VOOG and SCHG. Both of these ETFs offer exposure to a basket of growth stocks, but there are some key differences to consider.
VOOG, which tracks the CRSP US Large Cap Growth Index, focuses on large-cap growth stocks in the US market. This ETF has a slightly higher expense ratio compared to SCHG, but it also has a higher dividend yield. Investors who are looking for exposure to well-established growth companies may find VOOG to be a suitable option.
On the other hand, SCHG tracks the Dow Jones U.S. Large-Cap Growth Total Stock Market Index, offering exposure to large-cap growth stocks across various sectors. This ETF has a lower expense ratio compared to VOOG, making it a more cost-effective option for investors. Additionally, SCHG has a slightly higher annualized return compared to VOOG over the past five years.
Ultimately, the decision between VOOG and SCHG comes down to individual preferences and investment goals. Investors who prioritize dividend yield and exposure to well-established growth companies may prefer VOOG, while those who prioritize cost-effectiveness and higher returns may lean towards SCHG. It is important for investors to conduct thorough research and consider their risk tolerance before making a decision between these two growth stock ETFs.