VOO vs. VOOG: Which Offers Broader Diversification?
Key Points
VOOG and VOO both track large-cap U.S. stocks within the S&P 500 index.
VOO offers broader diversification, lower costs, and higher yield, helping to mitigate risk while building steady income.
VOOG focuses on growth with a more concentrated sector tilt, as it's more heavily shifted toward the technology industry.
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The Vanguard S&P 500 Growth ETF (NYSEMKT:VOOG) and the Vanguard S&P 500 ETF (NYSEMKT:VOO) both aim to mirror segments of the S&P 500, but with different approaches.
VOOG zeroes in on growth companies within the index, while VOO covers the entire S&P 500 -- offering exposure to both growth and value stocks. Here’s how they stack up for investors considering either fund.
Snapshot
| Metric | VOOG | VOO |
|---|---|---|
| Issuer | Vanguard | Vanguard |
| Expense ratio | 0.07% | 0.03% |
| 1-yr return (as of Oct. 28, 2025) | 28.6% | 18.3% |
| Dividend yield | 0.49% | 1.15% |
| Beta | 1.03 | 1.00 |
| AUM | $20.7 billion | $1.4 trillion |
Beta measures price volatility relative to the S&P 500; figures use five-year weekly returns.
VOO appears more affordable with a lower expense ratio, and it also offers a higher dividend payout, making it an appealing option for cost-conscious investors seeking steady income.
Performance & risk comparison
| Metric | VOOG | VOO |
|---|---|---|
| Max drawdown (5 y) | -32.73% | -24.52% |
| Growth of $1,000 over 5 years | $2,200 | $2,083 |
What's inside
VOO holds 504 stocks, representing a wide swath of the U.S. market. Technology is its largest sector at 35% (as of Oct. 29, 2025), followed by financial services (14%) and consumer discretionary (11%).
Its top positions include Nvidia, Microsoft, and Apple, each representing less than 10% of the portfolio. The fund boasts a 15-year track record (as of Oct. 29, 2025), with no notable quirks or restrictions.
VOOG, in contrast, narrows its focus to 217 S&P 500 growth stocks, resulting in a heavier tilt toward technology (43%), communication services (15%), and consumer discretionary (12%).
Like VOO, its top holdings include Nvidia, Microsoft, and Apple, but with slightly higher concentrations. VOOG’s sector concentration and smaller roster may lead to more pronounced swings than VOO’s diversified mix.
For more guidance on ETF investing, check out the full guide here.
Foolish take
While both ETFs are well-diversified and contain large-cap stocks within the S&P 500, VOO is broader and more diversified. With less of a focus on the tech industry compared to VOOG, it often experiences less severe ups and downs during periods of market volatility.
That said, VOOG's heavy focus on growth stocks -- particularly in the tech sector -- positions it for more substantial growth. This fund has outperformed VOO in recent years, earning an average rate of return of 17.49% per year over the last 10 years compared to VOO's average of 15.26% per year in that time.
Both funds can be fantastic investments, and the best fit for you will depend on your goals and risk tolerance. For increased risk protection, VOO offers ample diversification. While VOOG experiences more short-term volatility, it has a history of outperforming the S&P 500.
Glossary
ETF: Exchange-traded fund; a basket of securities traded on an exchange like a stock.
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, expressed as a percentage of its current price.
Beta: A measure of an investment's volatility compared to the overall market, typically the S&P 500.
AUM: Assets under management; the total market value of assets a fund manages.
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 market average.
Value stock: A company considered undervalued compared to its fundamentals, often with lower growth but higher dividends.
Sector tilt: When a fund allocates more to certain industries or sectors than the broader market.
Track record: The historical performance period of a fund since its inception.
Concentration: The degree to which a fund's assets are invested in a small number of holdings or sectors.
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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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