VOO vs. VOOG: Is S&P 500 Diversification or Tech-Focused Growth the Better Choice for Investors?
Key Points
VOOG has delivered higher one-year and five-year total returns, but with deeper drawdowns and more volatility than VOO.
VOO is broader, more diversified, and offers a higher dividend yield at a lower expense ratio.
VOOG is more concentrated in growth names, while VOO covers the entire S&P 500.
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The Vanguard S&P 500 Growth ETF (NYSEMKT:VOOG) focuses on growth stocks within the S&P 500, while the Vanguard S&P 500 ETF (NYSEMKT:VOO) tracks the full S&P 500 index.
This comparison examines how their costs, performance, volatility, and underlying holdings compare for investors considering broad-market versus growth-focused exposure.
Snapshot (cost & size)
| Metric | VOOG | VOO |
|---|---|---|
| Issuer | Vanguard | Vanguard |
| Expense ratio | 0.07% | 0.03% |
| 1-yr return (as of Dec. 17, 2025) | 13.67% | 10.73% |
| Dividend yield | 0.48% | 1.12% |
| Beta (5Y monthly) | 1.10 | 1.00 |
| AUM | $21.7 billion | $1.5 trillion |
Beta measures price volatility relative to the S&P 500. The 1-yr return represents total return over the trailing 12 months.
VOO is more affordable, with a lower expense ratio than VOOG, and it also provides a higher dividend yield. This means VOO may appeal to cost-conscious investors seeking a higher income stream from dividends.
Performance & risk comparison
| Metric | VOOG | VOO |
|---|---|---|
| Max drawdown (5 y) | -32.74% | -24.53% |
| Growth of $1,000 over 5 years | $1,904 | $1,816 |
What's inside
VOO holds all 505 stocks in the S&P 500, and its sector exposure is led by technology at 37%, followed by financial services and consumer cyclicals. The top holdings include Nvidia, Apple, and Microsoft. VOO’s broad approach may help smooth out sector-specific volatility, and the fund trades with deep liquidity and minimal friction.
VOOG, in contrast, narrows its focus to 217 growth-oriented stocks within the S&P 500. This results in a heavier tilt toward technology (45%) and more concentrated top holdings. VOOG’s higher concentration in tech and growth companies has boosted returns but also increased volatility and drawdowns compared to VOO.
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What this means for investors
VOO and VOOG exclusively contain stocks from the S&P 500 index, but they differ in their strategies and goals.
VOO is a broad-market fund aiming to replicate the performance of the S&P 500 as a whole, while VOOG only contains stocks from the index that have higher growth potential.
VOOG's fewer number of holdings and greater tilt toward tech stocks results in less diversification compared to VOO. However, a narrower focus can sometimes lead to higher returns. VOOG has outperformed VOO in both one- and five-year total returns, though it comes with the cost of steeper drawdowns and more significant price volatility.
Aside from performance, VOO has the advantage of both a lower expense ratio and a higher dividend yield. Investors can expect to pay $3 per year in fees for every $10,000 invested with VOO, compared to $7 per year with VOOG. While that's a slight difference, it can add up over time for investors with large account balances. VOO's significantly higher yield also makes it easier for investors to generate passive income over time.
Where you choose to buy will depend on your risk tolerance and investing goals. VOO is the more stable of the two funds, though its earnings are limited. Because it aims to follow the S&P 500, it can't earn above-average returns. VOOG has experienced greater volatility in recent years, but it also has more room for growth. Both ETFs can be smart buys, but the right one will depend on what gaps you're looking to fill in your portfolio.
Glossary
ETF: Exchange-traded fund; a fund that trades on an exchange like a stock, holding a basket of assets.
Expense ratio: The annual fee, as a percentage of assets, that a fund charges to cover operating costs.
Dividend yield: Annual dividends paid by a fund or stock divided by its current price, shown as a percentage.
Beta: A measure of a fund’s volatility relative to the overall market; a beta above 1 means higher volatility.
AUM: Assets under management; the total market value of assets a fund manages on behalf of investors.
Max drawdown: The largest percentage drop from a fund’s peak value to its lowest point over a specific period.
Growth stock: A company expected to grow earnings or revenue faster than the overall market.
Value stock: A company considered undervalued compared to its fundamentals, often trading at lower price ratios.
Sector exposure: The proportion of a fund’s assets invested in specific industry sectors, like technology or financials.
Liquidity: How easily an asset or fund can be bought or sold without affecting its price.
Concentration: The degree to which a fund’s assets are invested in a small number of holdings or sectors.
Total return: The investment's price change plus all dividends and distributions, assuming those payouts are reinvested.
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Katie Brockman has positions in Vanguard Admiral Funds - Vanguard S&P 500 Growth ETF and Vanguard S&P 500 ETF. The Motley Fool has positions in and recommends Apple, Microsoft, Nvidia, and Vanguard S&P 500 ETF. The Motley Fool recommends the following options: long January 2026 $395 calls on Microsoft and short January 2026 $405 calls on Microsoft. The Motley Fool has a disclosure policy.
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