VTI is one of the largest ETFs and is a core holding of many portfolios, while VUG is a popular “factor” ETF. In this context, factors are quantitative characteristics that index providers assign to stocks. In this case, VUG targets growth stocks (as they are defined by the index provider). Even though VTI and VUG play different roles in a portfolio, many investors compare the two funds in order to determine whether they should tilt their portfolio towards a factor or to benchmark a factor’s performance. Please read on for a comparison of VUG vs VTI.

A quick reminder that this site does NOT provide investment recommendations. Fund comparisons (such as this one) are not conducted to identify the “best” fund (since that will vary from investor to investor based on investor-specific factors). Rather, these fund comparison posts are designed to identify and distinguish between the fund details that matter versus the ones that don’t.

The Short Answer

VUG only owns large-cap stocks that are classified as growth stocks. VTI owns a more diverse portfolio of all market caps and investment styles. Historical performance has been similar, but will depend on how the growth factor performs moving forward.

The Long Answer

Historical Performance: VUG vs VTI

Since their common inception in 2004, performance has been relatively similar with an annualized difference of roughly 1%. This has compounded over time though and the cumulative performance differential is about 115%!

As the VUG vs VTI chart shows, the growth factor has really outperformed the broader market since their common inception. However, this did change in 2022 as lines begin to converge again. It is anyone’s guess whether growth or value will perform better in the future.

Differences Between VUG and VTI

The primary difference between these two funds is that VUG tracks the CRSP US Large Cap Growth Index, while VTI tracks the broader CRSP US Total Market Index.

Geographic Exposure

Both VUG and VTI hold essentially 100% US stocks, so I will not dig into country exposures or market classification here. For all intents and purposes, the two funds have identical country exposures.

Market Cap Exposure

Overall, the market cap exposures of VUG and VTI are relatively similar.

	VUG	VTI
Large Cap	87%	72%
Mid Cap	13%	20%
Small Cap	0%	9%

Sector Weights

There are some significant differences in sector weights, which makes sense based on the fact that VUG is targeting the growth factor and some sectors meet the growth factor criteria more easily.

	VUG	VTI
Basic Materials	1.88%	2.56%
Consumer Cyclical	16.93%	10.39%
Financial Services	6.53%	12.79%
Real Estate	2.20%	3.29%
Communication Services	11.34%	7.61%
Energy	1.40%	5.06%
Industrials	4.05%	8.76%
Technology	43.61%	23.76%
Consumer Defensive	2.65%	7.13%
Health Care	9.42%	14.75%
Utilities	0.00%	2.94%

Expenses

VUG’s expense ratio is .04%, while VTI’s expense ratio is .03%. Yes, VUG is .33% more expensive than VTI, but we’re talking about 1 basis point! This in an non-issue in my opinion.

Transaction Costs

ETFs are free to trade at many brokers and custodians, so both VUG and VTI should be free to trade in most cases. Additionally, these funds are among the largest ETFs and are very liquid. The bid-ask spread of both VUG and VTI is very low, so individual investor trades will not generally be large enough to “move” the market.

Tax Efficiency & Capital Gain Distributions

ETFs are typically more tax-efficient than mutual funds, due to their ability to avoid realizing capital gains through like-kind redemptions (a process that is beyond the scope of this post). Neither VUG nor VTI has ever made a capital gains distribution (nor do I expect them to moving forward). Thus, these funds are about as tax-efficient as any fund can be and either fund is appropriate in taxable accounts.

Final Thoughts: VUG vs VTI

Both funds are great ETFs that do what they are designed to do. Generally speaking, I do not think factor ETFs should be the core of a portfolio. For a core position, I would personally choose VTI every time. However, investors looking for a satellite position in order to tilt their portfolio towards growth could do a lot worse than using VUG (although some may get similar results with something like QQQ). At the end of the day, these two funds are not necessarily comparable because they play very different roles in a portfolio.

Curious readers who want to read about VUG value-oriented counterpart can read my comparison of VTV vs VTI here.

VOOG and QQQM are two of the most popular ETFs in the market. Given their popularity, many people compare VOOG vs QQQM and/or ask which fund is a better investment.

My answer to these types of questions is that VOOG and QQQM are very different and not necessarily comparable. So rather than write a long post about similarities and differences between VOOG and QQQM, I’ll provide a framework for thinking about VOOG vs QQQM.

My goal here at ThoughtfulFinance.com is to educate investors and that sometimes includes not answering the exact question that was asked, reframing questions, or providing a different type of answer. As always though, a quick reminder that this site does NOT provide investment recommendations. Fund comparisons (such as this one) are not conducted to identify the “best” fund (since that will vary from investor to investor based on investor-specific factors).

The Short Answer

On the surface, VOOG and QQQM look similar as they’re both large-cap growth-oriented funds. They have very different exposures, although that has not led to meaningful differences in volatility. That being said, QQQM has outperformed by a wide margin since inception. Yet, I would not use either fund as a core position, but they could be used as satellite positions.

Types of Investors

There are a few reasons that someone might want to know whether VOOG or QQQM is a better investment and I think it has a lot to do with who they are. Different types of investors have varying levels of knowledge, differing goals, and so on.

New Investors

Even though VOOG and QQQM are not necessarily comparable, individual investors may not necessarily understand that the funds are different or what differences really matter. New investors may want to just skip to the bottom of this post.

Average Investors

Some investors may understand that VOOG and QQQM are quite different, but may be interested in selecting the one that they believe will perform the best. My response to these investors is that portfolio construction should be based on a target asset allocation (based on risk tolerance, time horizon, liquidity needs, and so on). Once an allocation is selected, then investors can select the best vehicle for each slice of the portfolio allocation. If an investor decides on an asset allocation before selecting investments (as they should!), then the question of VOOG vs QQQM will never come up since they fill different roles in a portfolio.

Day Traders

There are some people who think that they can trade in and out of VOOG, QQQM, and other investments profitably. To those people, I’d say the research, evidence, and odds are stacked against you but good luck!

VOOG vs QQQM: Holdings & Exposures

VOOG and QQQM are not comparable because their underlying holdings are so different. An investor’s preference for VOOG or QQQM will depend on its role in the portfolio.

Both funds primarily hold stocks, but the composition and exposures of their holdings is very different. Although both VOOG and QQQM are large-cap growth funds, QQQM is more concentrated in terms of number of companies and sectors. However, this concentration has not necessarily hurt QQQM relative to VOOG. QQQM has underperformed VOOG in some periods, but not always. VOOG has underperformed QQQM since inception.

All of that being said, QQQM and VOOG are more volatile than a broad-based index fund such as VTI or IVV. I would never recommend VOOG or QQQM as a core portfolio holding. At best, they could be satellite or complementary positions.

VOOG vs QQQM: Performance, Expenses, & Risk

I could compare VOOG and QQQM’s historical performance, expense ratios, tax-efficiency, and so on as many sites do. However, these details are only important points of comparison if the funds are comparable, so this post doesn’t include a bunch of meaningless data. Those who are still interested can check out ETF.com’s comparison tool.

Historical Performance

Since VOOG and QQQM have very different holdings and exposures, comparing historical performance is meaningless. One fund will outperform over certain time periods and the other will outperform over other time periods. I am not going to delve into a performance comparison and attribution, since we already know that the funds are very different. Readers who really want this information can check out tools like Morningstar.com.

Expenses

Again, any performance difference caused by the expense ratios of VOOG and QQQM will be dwarfed by larger differences like holdings, exposures, risk factors, etc. Expenses are very important when all else is equal, but VOOG and QQQM are not equal at all!

Risk & Volatility

The two funds are very different, but the risk and volatility has not been that different historically.

ETF Benefits

Both VOOG and QQQM are exchange-traded funds (ETFs), which do have some advantages for investors.

Tax Efficiency

ETFs are typically more tax-efficient than mutual funds, due to their ability to avoid realizing capital gains through like-kind redemptions (a process that is beyond the scope of this post). Thus, these funds are about as tax-efficient as any fund can be and either fund is appropriate in taxable accounts.

Tradability

ETFs are free to trade on many platforms and investors should have no problem trading VOOG or QQQM, which are large and liquid.

Alternative Vehicles

Investors limited to mutual funds should have no problem finding a mutual fund version of VOOG or a mutual fund version of QQQM.

Investors planning to allocate more than $250,000 may consider direct indexing rather than an ETF or mutual fund, especially if they are in a high tax bracket. Any institutional direct indexer should be able to replicate VOOG or QQQM easily.

What Would I Do: VOOG or QQQM?

In my opinion, neither VOOG nor QQQM is appropriate as a core holding for most portfolios. However, I think either QQQM or VOOG could potentially be a satellite holding for some investors. For a core holding, I’d use something like VTI (see how VTI compares to VTI here).

VUG and QQQM are two of the most popular ETFs in the market. Given their popularity, many people compare VUG vs QQQM and/or ask which fund is a better investment.

My answer to these types of questions is that VUG and QQQM are very different and not necessarily comparable. So rather than write a long post about similarities and differences between VUG and QQQM, I’ll provide a framework for thinking about VUG vs QQQM.

My goal here at ThoughtfulFinance.com is to educate investors and that sometimes includes not answering the exact question that was asked, reframing questions, or providing a different type of answer. As always though, a quick reminder that this site does NOT provide investment recommendations. Fund comparisons (such as this one) are not conducted to identify the “best” fund (since that will vary from investor to investor based on investor-specific factors).

The Short Answer

On the surface, VUG and QQQM look similar as they’re both large-cap growth-oriented funds. They have very different exposures, although that has not led to meaningful differences in volatility. That being said, QQQM has outperformed by a wide margin since inception. Yet, I would not use either fund as a core position, but they could be used as satellite positions.

Types of Investors

There are a few reasons that someone might want to know whether VUG or QQQM is a better investment and I think it has a lot to do with who they are. Different types of investors have varying levels of knowledge, differing goals, and so on.

New Investors

Even though VUG and QQQM are not necessarily comparable, individual investors may not necessarily understand that the funds are different or what differences really matter. New investors may want to just skip to the bottom of this post.

Average Investors

Some investors may understand that VUG and QQQM are quite different, but may be interested in selecting the one that they believe will perform the best. My response to these investors is that portfolio construction should be based on a target asset allocation (based on risk tolerance, time horizon, liquidity needs, and so on). Once an allocation is selected, then investors can select the best vehicle for each slice of the portfolio allocation. If an investor decides on an asset allocation before selecting investments (as they should!), then the question of VUG vs QQQM will never come up since they fill different roles in a portfolio.

Day Traders

There are some people who think that they can trade in and out of VUG, QQQM, and other investments profitably. To those people, I’d say the research, evidence, and odds are stacked against you but good luck!

VUG vs QQQM: Holdings & Exposures

VUG and QQQM are not comparable because their underlying holdings are so different. An investor’s preference for VUG or QQQM will depend on its role in the portfolio.

Both funds primarily hold stocks, but the composition and exposures of their holdings is very different. Although both VUG and QQQM are large-cap growth funds, QQQM is more concentrated in terms of number of companies and sectors. However, this concentration has not necessarily hurt QQQM relative to VUG. QQQM has underperformed VUG in some periods, but not always. VUG has underperformed QQQM since inception.

All of that being said, QQQM and VUG are more volatile than a broad-based index fund such as VTI or IVV. I would never recommend VUG or QQQM as a core portfolio holding. At best, they could be satellite or complementary positions.

VUG vs QQQM: Performance, Expenses, & Risk

I could compare VUG and QQQM’s historical performance, expense ratios, tax-efficiency, and so on as many sites do. However, these details are only important points of comparison if the funds are comparable, so this post doesn’t include a bunch of meaningless data. Those who are still interested can check out ETF.com’s comparison tool.

Historical Performance

Since VUG and QQQM have very different holdings and exposures, comparing historical performance is meaningless. One fund will outperform over certain time periods and the other will outperform over other time periods. I am not going to delve into a performance comparison and attribution, since we already know that the funds are very different. Readers who really want this information can check out tools like Morningstar.com.

Expenses

Again, any performance difference caused by the expense ratios of VUG and QQQM will be dwarfed by larger differences like holdings, exposures, risk factors, etc. Expenses are very important when all else is equal, but VUG and QQQM are not equal at all!

Risk & Volatility

The two funds are very different, but the risk and volatility has not been that different historically.

ETF Benefits

Both VUG and QQQM are exchange-traded funds (ETFs), which do have some advantages for investors.

Tax Efficiency

ETFs are typically more tax-efficient than mutual funds, due to their ability to avoid realizing capital gains through like-kind redemptions (a process that is beyond the scope of this post). Thus, these funds are about as tax-efficient as any fund can be and either fund is appropriate in taxable accounts.

Tradability

ETFs are free to trade on many platforms and investors should have no problem trading VUG or QQQM, which are large and liquid.

Alternative Vehicles

Investors limited to mutual funds should have no problem finding a mutual fund version of VUG or a mutual fund version of QQQM.

Investors planning to allocate more than $250,000 may consider direct indexing rather than an ETF or mutual fund, especially if they are in a high tax bracket. Any institutional direct indexer should be able to replicate VUG or QQQM easily.

What Would I Do: VUG or QQQM?

In my opinion, neither VUG nor QQQM is appropriate as a core holding for most portfolios. However, I think either QQQM or VUG could potentially be a satellite holding for some investors. For a core holding, I’d use something like VTI (see how VTI compares to VTI here).

SPYG and QQQM are two of the most popular ETFs in the market. Given their popularity, many people compare SPYG vs QQQM and/or ask which fund is a better investment.

My answer to these types of questions is that SPYG and QQQM are very different and not necessarily comparable. So rather than write a long post about similarities and differences between SPYG and QQQM, I’ll provide a framework for thinking about SPYG vs QQQM.

My goal here at ThoughtfulFinance.com is to educate investors and that sometimes includes not answering the exact question that was asked, reframing questions, or providing a different type of answer. As always though, a quick reminder that this site does NOT provide investment recommendations. Fund comparisons (such as this one) are not conducted to identify the “best” fund (since that will vary from investor to investor based on investor-specific factors).

The Short Answer

On the surface, SPYG and QQQM look similar as they’re both large-cap growth-oriented funds. They have very different exposures, although that has not led to meaningful differences in volatility. That being said, QQQM has outperformed by a wide margin since inception. Yet, I would not use either fund as a core position, but they could be used as satellite positions.

Types of Investors

There are a few reasons that someone might want to know whether SPYG or QQQM is a better investment and I think it has a lot to do with who they are. Different types of investors have varying levels of knowledge, differing goals, and so on.

New Investors

Even though SPYG and QQQM are not necessarily comparable, individual investors may not necessarily understand that the funds are different or what differences really matter. New investors may want to just skip to the bottom of this post.

Average Investors

Some investors may understand that SPYG and QQQM are quite different, but may be interested in selecting the one that they believe will perform the best. My response to these investors is that portfolio construction should be based on a target asset allocation (based on risk tolerance, time horizon, liquidity needs, and so on). Once an allocation is selected, then investors can select the best vehicle for each slice of the portfolio allocation. If an investor decides on an asset allocation before selecting investments (as they should!), then the question of SPYG vs QQQM will never come up since they fill different roles in a portfolio.

Day Traders

There are some people who think that they can trade in and out of SPYG, QQQM, and other investments profitably. To those people, I’d say the research, evidence, and odds are stacked against you but good luck!

SPYG vs QQQM: Holdings & Exposures

SPYG and QQQM are not comparable because their underlying holdings are so different. An investor’s preference for SPYG or QQQM will depend on its role in the portfolio.

Both funds primarily hold stocks, but the composition and exposures of their holdings is very different. Although both SPYG and QQQM are large-cap growth funds, QQQM is more concentrated in terms of number of companies and sectors. However, this concentration has not necessarily hurt QQQM relative to SPYG. QQQM has underperformed SPYG in some periods, but not always. SPYG has underperformed QQQM since inception (see SPYG vs QQQM historical performance chart below).

All of that being said, QQQM and SPYG are more volatile than a broad-based index fund such as VTI or IVV. I would never recommend SPYG or QQQM as a core portfolio holding. At best, they could be satellite or complementary positions.

SPYG vs QQQM: Performance, Expenses, & Risk

I could compare SPYG and QQQM’s historical performance, expense ratios, tax-efficiency, and so on as many sites do. However, these details are only important points of comparison if the funds are comparable, so this post doesn’t include a bunch of meaningless data. Those who are still interested can check out ETF.com’s comparison tool.

Historical Performance

Since SPYG and QQQM have very different holdings and exposures, comparing historical performance is meaningless. One fund will outperform over certain time periods and the other will outperform over other time periods. I am not going to delve into a performance comparison and attribution, since we already know that the funds are very different. Readers who really want this information can check out tools like Morningstar.com.

Expenses

Again, any performance difference caused by the expense ratios of SPYG and QQQM will be dwarfed by larger differences like holdings, exposures, risk factors, etc. Expenses are very important when all else is equal, but SPYG and QQQM are not equal at all!

Risk & Volatility

The two funds are very different, but the risk and volatility has not been that different historically.

ETF Benefits

Both SPYG and QQQM are exchange-traded funds (ETFs), which do have some advantages for investors.

Tax Efficiency

ETFs are typically more tax-efficient than mutual funds, due to their ability to avoid realizing capital gains through like-kind redemptions (a process that is beyond the scope of this post). Thus, these funds are about as tax-efficient as any fund can be and either fund is appropriate in taxable accounts.

Tradability

ETFs are free to trade on many platforms and investors should have no problem trading SPYG or QQQM, which are large and liquid.

Alternative Vehicles

Investors limited to mutual funds should have no problem finding a mutual fund version of SPYG or a mutual fund version of QQQM.

Investors planning to allocate more than $250,000 may consider direct indexing rather than an ETF or mutual fund, especially if they are in a high tax bracket. Any institutional direct indexer should be able to replicate SPYG or QQQM easily.

What Would I Do: SPYG or QQQM?

In my opinion, neither SPYG nor QQQM is appropriate as a core holding for most portfolios. However, I think either QQQM or SPYG could potentially be a satellite holding for some investors. For a core holding, I’d use something like VTI.

SPYG and QQQ are two of the most popular ETFs in the market. Given their popularity, many people compare SPYG vs QQQ and/or ask which fund is a better investment.

My answer to these types of questions is that SPYG and QQQ are very different and not necessarily comparable. So rather than write a long post about similarities and differences between SPYG and QQQ, I’ll provide a framework for thinking about SPYG vs QQQ.

My goal here at ThoughtfulFinance.com is to educate investors and that sometimes includes not answering the exact question that was asked, reframing questions, or providing a different type of answer. As always though, a quick reminder that this site does NOT provide investment recommendations. Fund comparisons (such as this one) are not conducted to identify the “best” fund (since that will vary from investor to investor based on investor-specific factors).

The Short Answer

On the surface, SPYG and QQQ look similar as they’re both large-cap growth-oriented funds. They have very different exposures, although that has not led to meaningful differences in volatility. That being said, QQQ has outperformed by a wide margin since inception. Yet, I would not use either fund as a core position, but they could be used as satellite positions.

Although QQQ is the more popular ETF, investors should also read up on QQQM which is less expensive than QQQ.

Types of Investors

There are a few reasons that someone might want to know whether SPYG or QQQ is a better investment and I think it has a lot to do with who they are. Different types of investors have varying levels of knowledge, differing goals, and so on.

New Investors

Even though SPYG and QQQ are not necessarily comparable, individual investors may not necessarily understand that the funds are different or what differences really matter. New investors may want to just skip to the bottom of this post.

Average Investors

Some investors may understand that SPYG and QQQ are quite different, but may be interested in selecting the one that they believe will perform the best. My response to these investors is that portfolio construction should be based on a target asset allocation (based on risk tolerance, time horizon, liquidity needs, and so on). Once an allocation is selected, then investors can select the best vehicle for each slice of the portfolio allocation. If an investor decides on an asset allocation before selecting investments (as they should!), then the question of SPYG vs QQQ will never come up since they fill different roles in a portfolio.

Day Traders

There are some people who think that they can trade in and out of SPYG, QQQ, and other investments profitably. To those people, I’d say the research, evidence, and odds are stacked against you but good luck!

SPYG vs QQQ: Holdings & Exposures

SPYG and QQQ are not comparable because their underlying holdings are so different. An investor’s preference for SPYG or QQQ will depend on its role in the portfolio.

Both funds primarily hold stocks, but the composition and exposures of their holdings is very different. Although both SPYG and QQQ are large-cap growth funds, QQQ is more concentrated in terms of number of companies and sectors. However, this concentration has not necessarily hurt QQQ relative to SPYG. QQQ has underperformed SPYG in some periods, but not always. SPYG has underperformed QQQ since inception (see SPYG vs QQQ historical performance chart below).

All of that being said, QQQ and SPYG are more volatile than a broad-based index fund such as VTI or IVV. I would never recommend SPYG or QQQ as a core portfolio holding. At best, they could be satellite or complementary positions.

SPYG vs QQQ: Performance, Expenses, & Risk

I could compare SPYG and QQQ’s historical performance, expense ratios, tax-efficiency, and so on as many sites do. However, these details are only important points of comparison if the funds are comparable, so this post doesn’t include a bunch of meaningless data. Those who are still interested can check out ETF.com’s comparison tool.

Historical Performance

Since SPYG and QQQ have very different holdings and exposures, comparing historical performance is meaningless. One fund will outperform over certain time periods and the other will outperform over other time periods. I am not going to delve into a performance comparison and attribution, since we already know that the funds are very different. Readers who really want this information can check out tools like Morningstar.com.

Expenses

Again, any performance difference caused by the expense ratios of SPYG and QQQ will be dwarfed by larger differences like holdings, exposures, risk factors, etc. Expenses are very important when all else is equal, but SPYG and QQQ are not equal at all!

Risk & Volatility

The two funds are very different, but the risk and volatility has not been that different historically.

ETF Benefits

Both SPYG and QQQ are exchange-traded funds (ETFs), which do have some advantages for investors.

Tax Efficiency

ETFs are typically more tax-efficient than mutual funds, due to their ability to avoid realizing capital gains through like-kind redemptions (a process that is beyond the scope of this post). Thus, these funds are about as tax-efficient as any fund can be and either fund is appropriate in taxable accounts.

Tradability

ETFs are free to trade on many platforms and investors should have no problem trading SPYG or QQQ, which are large and liquid.

Alternative Vehicles

Investors limited to mutual funds should have no problem finding a mutual fund version of SPYG or a mutual fund version of QQQ.

Investors planning to allocate more than $250,000 may consider direct indexing rather than an ETF or mutual fund, especially if they are in a high tax bracket. Any institutional direct indexer should be able to replicate SPYG or QQQ easily.

What Would I Do: SPYG or QQQ?

In my opinion, neither SPYG nor QQQ is appropriate as a core holding for most portfolios. However, I think either QQQ or SPYG could potentially be a satellite holding for some investors. For a core holding, I’d use something like VTI.

The State Street SPDR S&P 500 Trust ETF (SPY) is one of the largest ETFs and is a core holding of many portfolios, while the State Street SPDR S&P 500 Value ETF (SPYV) is a popular “factor” ETF. In this context, factors are quantitative characteristics that index providers assign to stocks. In this case, SPYV targets value stocks (as they are defined by the index provider). Even though SPY and SPYV play different roles in a portfolio, many investors compare the SPYV vs SPY in order to determine whether they should tilt their portfolio towards a factor or to benchmark a factor’s performance.

A quick reminder that this site does NOT provide investment recommendations. Fund comparisons (such as this one) are not conducted to identify the “best” fund (since that will vary from investor to investor based on investor-specific factors). Rather, these fund comparison posts are designed to identify and distinguish between the fund details that matter versus the ones that don’t.

The Short Answer

SPYV essentially owns the subset of SPY’s holdings that are considered value stocks. SPY owns a more diverse portfolio including value stocks. Historical performance has not been that much different (since inception), but future performance will depend on how the value factor performs moving forward.

The Long Answer

Historical Performance: SPYV vs SPY

SPY was the first ETF (launched in 1993), while SPYV was launched later in 2000. Since then, performance has been incredibly close with an annualized difference of less than .1%. This has compounded over time though and the cumulative performance differential is about 11% (which is still very small over 22+ years)!

As the SPYV vs SPY chart shows, the SPY and SPYV each have had their periods of outperformance. It is anyone’s guess whether growth or value will perform better in the future.

Differences Between SPYV and SPY

The primary difference between these two funds is that SPYV tracks a value-oriented index, while SPY tracks a broader index.

Geographic Exposure

Both SPYV and SPY hold essentially 100% US stocks, so I will not dig into country exposures or market classification here. For all intents and purposes, the two funds have identical country exposures.

Market Cap Exposure

Overall, the market cap exposures of SPYV and SPY are relatively similar as both are large-cap funds.

Sector Weights

There are some significant differences in sector weights, which makes sense based on the fact that SPYV is targeting the value factor and some sectors meet the value factor criteria more easily.

	SPYV	SPY
Basic Materials	2.56%	2.22%
Consumer Cyclical	11.29%	10.47%
Financial Services	18.79%	12.05%
Real Estate	4.48%	2.51%
Communication Services	10.14%	8.89%
Energy	1.44%	4.24%
Industrials	11.23%	7.67%
Technology	19.28%	28.94%
Consumer Defensive	6.88%	6.68%
Health Care	8.78%	13.68%
Utilities	5.32%	2.67%

Expenses

SPYV’s expense ratio is .04%, while SPY’s expense ratio is .0945%. Yes, SPY is 2x+ more expensive than SPYV, but we’re talking about 5 basis points! This in an non-issue in my opinion.

Transaction Costs

ETFs are free to trade at many brokers and custodians, so both SPYV and SPY should be free to trade in most cases. Additionally, these funds are among the largest ETFs and are very liquid. The bid-ask spread of both SPYV and SPY is very low, so individual investor trades will not generally be large enough to “move” the market.

Tax Efficiency & Capital Gain Distributions

ETFs are typically more tax-efficient than mutual funds, due to their ability to avoid realizing capital gains through like-kind redemptions (a process that is beyond the scope of this post). Thus, these funds are about as tax-efficient as any fund can be and either fund is appropriate in taxable accounts.

Alternative Vehicles

Investors limited to mutual funds should have no problem finding a mutual fund version of SPY or a mutual fund version of SPYV.

Investors planning to allocate more than $250,000 may consider direct indexing rather than an ETF or mutual fund, especially if they are in a high tax bracket. Any institutional direct indexer should be able to replicate SPY or SPYV easily.

Final Thoughts: SPYV vs SPY

Both funds are great ETFs that do what they are designed to do. Generally speaking, I do not think factor ETFs should be the core of a portfolio. For a core position, I would personally choose SPY every time. However, investors looking for a satellite position in order to tilt their portfolio towards value could do a lot worse than using SPYV. At the end of the day, these two funds are not necessarily comparable because they play very different roles in a portfolio.

Further Reading

Readers interested in learning about similar funds from another sponsor want want to read up on Vanguard VOO vs VTV.

The State Street SPDR S&P 500 Trust ETF (SPY) is one of the largest ETFs and is a core holding of many portfolios, while the State Street SPDR S&P 500 Growth ETF (SPYG) is a popular “factor” ETF. In this context, factors are quantitative characteristics that index providers assign to stocks. In this case, SPYG targets growth stocks (as they are defined by the index provider). Even though SPY and SPYG play different roles in a portfolio, many investors compare the SPYG vs SPY in order to determine whether they should tilt their portfolio towards a factor or to benchmark a factor’s performance.

A quick reminder that this site does NOT provide investment recommendations. Fund comparisons (such as this one) are not conducted to identify the “best” fund (since that will vary from investor to investor based on investor-specific factors). Rather, these fund comparison posts are designed to identify and distinguish between the fund details that matter versus the ones that don’t.

The Short Answer

SPYG essentially owns the subset of SPY’s holdings that are considered growth stocks. SPY owns a more diverse portfolio including growth stocks. SPYG has outperformed in the past, but future performance will depend on how the growth factor performs moving forward.

The Long Answer

Historical Performance: SPYG vs SPY

SPY was the first ETF (launched in 1993), while SPYG was launched later in 2000. Since then, SPYG has performed better by about 1.7% per year. This has compounded over time though and the cumulative performance differential is about 140%!

As the SPYG vs SPY chart shows, the growth factor has really outperformed the broader market since their common inception. It is anyone’s guess whether growth or value will perform better in the future.

Differences Between SPYG and SPY

The primary difference between these two funds is that SPYG tracks a growth-oriented index, while SPY tracks a broader index.

Geographic Exposure

Both SPYG and SPY hold essentially 100% US stocks, so I will not dig into country exposures or market classification here. For all intents and purposes, the two funds have identical country exposures.

Market Cap Exposure

Overall, the market cap exposures of SPYG and SPY are relatively similar as both are large-cap funds.

Sector Weights

There are some significant differences in sector weights, which makes sense based on the fact that SPYG is targeting the growth factor and some sectors meet the growth factor criteria more easily.

	SPYG	SPY
Basic Materials	1.93%	2.22%
Consumer Cyclical	9.79%	10.47%
Financial Services	6.45%	12.05%
Real Estate	0.88%	2.51%
Communication Services	7.84%	8.89%
Energy	6.56%	4.24%
Industrials	4.72%	7.67%
Technology	36.95%	28.94%
Consumer Defensive	6.67%	6.68%
Health Care	17.74%	13.68%
Utilities	0.47%	2.67%

Expenses

SPYG’s expense ratio is .04%, while SPY’s expense ratio is .0945%. Yes, SPY is 2x+ more expensive than SPYG, but we’re talking about 5 basis points! This in an non-issue in my opinion.

Transaction Costs

ETFs are free to trade at many brokers and custodians, so both SPYG and SPY should be free to trade in most cases. Additionally, these funds are among the largest ETFs and are very liquid. The bid-ask spread of both SPYG and SPY is very low, so individual investor trades will not generally be large enough to “move” the market.

Tax Efficiency & Capital Gain Distributions

ETFs are typically more tax-efficient than mutual funds, due to their ability to avoid realizing capital gains through like-kind redemptions (a process that is beyond the scope of this post). Thus, these funds are about as tax-efficient as any fund can be and either fund is appropriate in taxable accounts.

Alternative Vehicles

Investors limited to mutual funds should have no problem finding a mutual fund version of SPY or a mutual fund version of SPYG.

Investors planning to allocate more than $250,000 may consider direct indexing rather than an ETF or mutual fund, especially if they are in a high tax bracket. Any institutional direct indexer should be able to replicate SPY or SPYG easily.

Final Thoughts: SPYG vs SPY

Both funds are great ETFs that do what they are designed to do. Generally speaking, I do not think factor ETFs should be the core of a portfolio. For a core position, I would personally choose SPY every time. However, investors looking for a satellite position in order to tilt their portfolio towards growth could do a lot worse than using SPYG. At the end of the day, these two funds are not necessarily comparable because they play very different roles in a portfolio.

Further Reading

Readers interested in learning about similar funds from another sponsor want want to read up on Vanguard VOO vs VUG.

VOOG and QQQ are two of the most popular ETFs in the market. Given their popularity, many people compare VOOG vs QQQ and/or ask which fund is a better investment.

My answer to these types of questions is that VOOG and QQQ are very different and not necessarily comparable. So rather than write a long post about similarities and differences between VOOG and QQQ, I’ll provide a framework for thinking about VOOG vs QQQ.

My goal here at ThoughtfulFinance.com is to educate investors and that sometimes includes not answering the exact question that was asked, reframing questions, or providing a different type of answer. As always though, a quick reminder that this site does NOT provide investment recommendations. Fund comparisons (such as this one) are not conducted to identify the “best” fund (since that will vary from investor to investor based on investor-specific factors).

The Short Answer

On the surface, VOOG and QQQ look similar as they’re both large-cap growth-oriented funds. They have very different exposures, although that has not led to meaningful differences in volatility. That being said, QQQ has outperformed by a wide margin since inception. Yet, I would not use either fund as a core position, but they could be used as satellite positions.

Types of Investors

There are a few reasons that someone might want to know whether VOOG or QQQ is a better investment and I think it has a lot to do with who they are. Different types of investors have varying levels of knowledge, differing goals, and so on.

New Investors

Even though VOOG and QQQ are not necessarily comparable, individual investors may not necessarily understand that the funds are different or what differences really matter. New investors may want to just skip to the bottom of this post.

Average Investors

Some investors may understand that VOOG and QQQ are quite different, but may be interested in selecting the one that they believe will perform the best. My response to these investors is that portfolio construction should be based on a target asset allocation (based on risk tolerance, time horizon, liquidity needs, and so on). Once an allocation is selected, then investors can select the best vehicle for each slice of the portfolio allocation. If an investor decides on an asset allocation before selecting investments (as they should!), then the question of VOOG vs QQQ will never come up since they fill different roles in a portfolio.

Day Traders

There are some people who think that they can trade in and out of VOOG, QQQ, and other investments profitably. To those people, I’d say the research, evidence, and odds are stacked against you but good luck!

VOOG vs QQQ: Holdings & Exposures

VOOG and QQQ are not comparable because their underlying holdings are so different. An investor’s preference for VOOG or QQQ will depend on its role in the portfolio.

Both funds primarily hold stocks, but the composition and exposures of their holdings is very different. Although both VOOG and QQQ are large-cap growth funds, QQQ is more concentrated in terms of number of companies and sectors. However, this concentration has not necessarily hurt QQQ relative to VOOG. QQQ has underperformed VOOG in some periods, but not always. VOOG has underperformed QQQ since inception, as well as during the drawdowns of 2020 and 2022.

All of that being said, QQQ and VOOG are more volatile than a broad-based index fund such as VTI or IVV. I would never recommend VOOG or QQQ as a core portfolio holding. At best, they could be satellite or complementary positions. For further reading, see my post on VTI vs QQQ.

VOOG vs QQQ: Performance, Expenses, & Risk

I could compare VOOG and QQQ’s historical performance, expense ratios, tax-efficiency, and so on as many sites do. However, these details are only important points of comparison if the funds are comparable, so this post doesn’t include a bunch of meaningless data. Those who are still interested can check out ETF.com’s comparison tool.

Historical Performance

Since VOOG and QQQ have very different holdings and exposures, comparing historical performance is meaningless. One fund will outperform over certain time periods and the other will outperform over other time periods. I am not going to delve into a performance comparison and attribution, since we already know that the funds are very different. Readers who really want this information can check out tools like Morningstar.com.

Expenses

Again, any performance difference caused by the expense ratios of VOOG and QQQ will be dwarfed by larger differences like holdings, exposures, risk factors, etc. Expenses are very important when all else is equal, but VOOG and QQQ are not equal at all!

Risk & Volatility

The two funds are very different, but the risk and volatility has not been that different historically.

ETF Benefits

Both VOOG and QQQ are exchange-traded funds (ETFs), which do have some advantages for investors.

Tax Efficiency

ETFs are typically more tax-efficient than mutual funds, due to their ability to avoid realizing capital gains through like-kind redemptions (a process that is beyond the scope of this post). Thus, these funds are about as tax-efficient as any fund can be and either fund is appropriate in taxable accounts.

Tradability

ETFs are free to trade on many platforms and investors should have no problem trading VOOG or QQQ, which are large and liquid.

Alternative Vehicles

Investors limited to mutual funds should have no problem finding a mutual fund version of VOOG or a mutual fund version of QQQ.

Investors planning to allocate more than $250,000 may consider direct indexing rather than an ETF or mutual fund, especially if they are in a high tax bracket. Any institutional direct indexer should be able to replicate VOOG or QQQ easily.

What Would I Do: VOOG or QQQ?

In my opinion, neither VOOG nor QQQ is appropriate as a core holding for most portfolios. However, I think either QQQ or VOOG could potentially be a satellite holding for some investors. For a core holding, I’d use something like VTI (see how VTI compares to QQQ here).

VUG and QQQ are two of the most popular ETFs in the market. Given their popularity, many people compare VUG vs QQQ and/or ask which fund is a better investment.

My answer to these types of questions is that VUG and QQQ are very different and not necessarily comparable. So rather than write a long post about similarities and differences between VUG and QQQ, I’ll provide a framework for thinking about VUG vs QQQ.

My goal here at ThoughtfulFinance.com is to educate investors and that sometimes includes not answering the exact question that was asked, reframing questions, or providing a different type of answer. As always though, a quick reminder that this site does NOT provide investment recommendations. Fund comparisons (such as this one) are not conducted to identify the “best” fund (since that will vary from investor to investor based on investor-specific factors).

The Short Answer

On the surface, VUG and QQQ look similar as they’re both large-cap growth-oriented funds. They have very different exposures, although that has not led to meaningful differences in volatility. That being said, QQQ has outperformed by a wide margin since inception. Yet, I would not use either fund as a core position, but they could be used as satellite positions.

Types of Investors

There are a few reasons that someone might want to know whether VUG or QQQ is a better investment and I think it has a lot to do with who they are. Different types of investors have varying levels of knowledge, differing goals, and so on.

New Investors

Even though VUG and QQQ are not necessarily comparable, individual investors may not necessarily understand that the funds are different or what differences really matter. New investors may want to just skip to the bottom of this post.

Average Investors

Some investors may understand that VUG and QQQ are quite different, but may be interested in selecting the one that they believe will perform the best. My response to these investors is that portfolio construction should be based on a target asset allocation (based on risk tolerance, time horizon, liquidity needs, and so on). Once an allocation is selected, then investors can select the best vehicle for each slice of the portfolio allocation. If an investor decides on an asset allocation before selecting investments (as they should!), then the question of VUG vs QQQ will never come up since they fill different roles in a portfolio.

Day Traders

There are some people who think that they can trade in and out of VUG, QQQ, and other investments profitably. To those people, I’d say the research, evidence, and odds are stacked against you but good luck!

VUG vs QQQ: Holdings & Exposures

VUG and QQQ are not comparable because their underlying holdings are so different. An investor’s preference for VUG or QQQ will depend on its role in the portfolio.

Both funds primarily hold stocks, but the composition and exposures of their holdings is very different. Although both VUG and QQQ are large-cap growth funds, QQQ is more concentrated in terms of number of companies and sectors. However, this concentration has not necessarily hurt QQQ relative to VUG. QQQ has underperformed VUG in some periods, but not always. VUG has underperformed QQQ since inception, as well as during the drawdowns of 2020 and 2022.

All of that being said, QQQ and VUG are more volatile than a broad-based index fund such as VTI or IVV. I would never recommend VUG or QQQ as a core portfolio holding. At best, they could be satellite or complementary positions.

VUG vs QQQ: Performance, Expenses, & Risk

I could compare VUG and QQQ’s historical performance, expense ratios, tax-efficiency, and so on as many sites do. However, these details are only important points of comparison if the funds are comparable, so this post doesn’t include a bunch of meaningless data. Those who are still interested can check out ETF.com’s comparison tool.

Historical Performance

Since VUG and QQQ have very different holdings and exposures, comparing historical performance is meaningless. One fund will outperform over certain time periods and the other will outperform over other time periods. I am not going to delve into a performance comparison and attribution, since we already know that the funds are very different. Readers who really want this information can check out tools like Morningstar.com.

Expenses

Again, any performance difference caused by the expense ratios of VUG and QQQ will be dwarfed by larger differences like holdings, exposures, risk factors, etc. Expenses are very important when all else is equal, but VUG and QQQ are not equal at all!

Risk & Volatility

The two funds are very different, but the risk and volatility has not been that different historically.

ETF Benefits

Both VUG and QQQ are exchange-traded funds (ETFs), which do have some advantages for investors.

Tax Efficiency

ETFs are typically more tax-efficient than mutual funds, due to their ability to avoid realizing capital gains through like-kind redemptions (a process that is beyond the scope of this post). Thus, these funds are about as tax-efficient as any fund can be and either fund is appropriate in taxable accounts.

Tradability

ETFs are free to trade on many platforms and investors should have no problem trading VUG or QQQ, which are large and liquid.

Alternative Vehicles

Investors limited to mutual funds should have no problem finding a mutual fund version of VUG or a mutual fund version of QQQ.

Investors planning to allocate more than $250,000 may consider direct indexing rather than an ETF or mutual fund, especially if they are in a high tax bracket. Any institutional direct indexer should be able to replicate VUG or QQQ easily.

What Would I Do: VUG or QQQ?

In my opinion, neither VUG nor QQQ is appropriate as a core holding for most portfolios. However, I think either QQQ or VUG could potentially be a satellite holding for some investors. For a core holding, I’d use something like VTI (see how VTI compares to VTI here).