VOO vs. VOOG: Which Vanguard S&P 500 ETF Is Best for You?

We dig deep to highlight the fund’s similarities and differences.

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kent
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Senior Content Editor
Reviewed by: Paul Curcio
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Edited by: Kiran Aditham

The Vanguard S&P 500 ETF (VOO) and the Vanguard S&P 500 Growth ETF (VOOG) are popular investment options for those looking to gain exposure to large-cap U.S. equities. While both track segments of the S&P 500, the exchange-traded funds cater to different investment styles and risk profiles.  

Understanding their structure, similarities, and distinctions can help investors decide which aligns best with their financial goals. 

VOO vs. VOOG: The Basics

VOO and VOOG are both broadly diversified Vanguard ETFs that passively track an index of U.S. large-cap stocks, but there are subtle differences in their approaches that investors should understand before buying shares of the funds: 

Vanguard S&P 500 ETF (VOO)

VOO mirrors the performance of the S&P 500 Index, which includes 500 of the largest publicly traded companies in the U.S. Thus, VOO provides broad market exposure across various sectors, including technology, healthcare, financials, and consumer discretionary, making it a cornerstone for diversified portfolios.  

It has a low expense ratio of 0.03% and is widely regarded as a core holding for long-term investors seeking market-level returns. 

Vanguard S&P 500 Growth ETF (VOOG)

VOOG tracks the S&P 500 Growth Index, which focuses exclusively on the growth-oriented subset of the S&P 500. It includes companies expected to achieve above-average revenue and earnings growth, primarily in sectors like technology and consumer discretionary. With a slightly higher expense ratio of 0.10%, VOOG targets investors seeking higher potential returns, albeit with increased volatility. 

Tip: Use our fund comparison tool for a deeper analysis: VOO vs VOOG

VOO and VOOG Side-by-Side Comparison

MetricVanguard S&P 500 ETF (VOO)Vanguard S&P 500 Growth ETF (VOOG)
Assets Under Management

$595.5B

$15.4B

Expense Ratio

0.03%

0.10%

1-Yr Return

26.25%

38.06%

3-Yr Return

9.80%

9.61%

5-Yr Return

14.30%

16.63%

10-Yr Return

13.21%

15.26%

Data as of January 9, 2025. Past performance is no guarantee of future results.

VOO vs. VOOG: The Similarities & Differences

Here’s a deeper breakdown of similarities and differences between VOO and VOOG: 

Similarities

  • Issuer: Both funds are managed by Vanguard, ensuring cost-efficiency and reliability. 
  • Passive Management: Both ETFs passively track the performance of an index of U.S. large-cap stocks. 
  • Market Exposure: Each provides access to U.S. large-cap stocks, a key segment of the equity market. 
  • Liquidity: Both ETFs are highly liquid, offering tight bid-ask spreads and minimal transaction costs. 

Differences

  • Focus: VOO offers broad market exposure, while VOOG focuses on growth stocks within the S&P 500. 
  • Sector Weighting: VOOG is heavily concentrated in technology and consumer discretionary sectors, whereas VOO has a more balanced sector allocation. 
  • Risk and Return: VOOG’s focus on growth stocks makes it more volatile, with higher upside potential during bullish markets but increased downside risk during downturns. 
  • Expense Ratios: VOOG’s expense ratio is higher, reflecting its narrower and more specialized investment approach. 

Which Vanguard S&P 500 ETF Is Right for You? 

While both Vanguard stock ETFs are passively managed and broadly diversified, the funds cater to different investors: 

  • VOO: This ETF is ideal for long-term investors seeking steady, market-level returns with broad diversification. It’s particularly suited for those with moderate risk tolerance and a preference for low-cost, passive investing. 
  • VOOG: This fund caters to growth-oriented investors willing to accept higher volatility for the possibility of greater returns. It’s best for individuals with a higher risk tolerance and a focus on capital appreciation over the long term. 

Bottom Line on VOO vs. VOOG 

Both VOO and VOOG are excellent tools for gaining exposure to large-cap U.S. stocks, but their different focuses mean they serve distinct purposes. VOO is a reliable, diversified option for most investors, while VOOG appeals to those who want to target growth sectors. Selecting between them depends on your investment strategy, risk tolerance, and financial goals. 

Kent Thune is Senior Content Editor for etf.com, focusing on educational content, thought leadership, content management and search engine optimization (SEO). Before joining etf.com, he wrote for numerous investment websites, including Seeking Alpha and Kiplinger. 

 

Kent holds a Master of Business Administration (MBA) degree and is a practicing Certified Financial Planner (CFP®) with 27 years of experience managing investments, guiding clients through some of the worst economic and market environments in U.S. history. He has also served as an adjunct professor, teaching classes for The College of Charleston and Trident Technical College on the topics of retirement planning, business finance, and entrepreneurship. 

 

Kent founded a registered investment advisory firm in 2006 and is based in Hilton Head Island, SC, where he lives with his wife and two sons. Outside of work, Kent enjoys spending time with his family, playing guitar, and working on his philosophy book, which he plans to publish in the coming year.

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