While these 3 ETFs from Vanguard look very similar based on their tickers, they are in fact very different. Here I explore VOO, VOOV, and VOOG.

// TIMESTAMPS:

00:00 - Intro
00:29 - Methodology
03:28 - Historical Performance
04:25 - Sector Composition
04:37 - AUM & Fees
05:04 - Conclusion
06:39 - Outro

// SUMMARY:

- VOO, VOOV, and VOOG are all popular index funds from Vanguard.
- VOO tracks the S&P 500 Index. VOOV tracks the S&P 500 Value Index. VOOG tracks the S&P 500 Growth Index.
- That is, VOOV is roughly half of VOO, and VOOG is the other half.
- All 3 funds have some overlap.
- VOOV and VOOG are more expensive than VOO.
- At the time of writing, the market already tilts Growth.
- VOOG has outperformed in recent years, though we would expect VOOV to win out over the long term.
- VOOV is objectively not the best fund to specifically target large cap value stocks.

Remember, VOOV + VOOG basically equals VOO. VOOV is Value stocks from the S&P 500. VOOG is Growth stocks from the S&P 500. While Growth has crushed Value for the decade 2010-2019, Value has still outperformed Growth historically, and Value has greater expected returns than Growth. Growth is currently looking extremely expensive relative to history (and fundamentals do not explain this expensiveness), and Value is looking extremely cheap relative to Growth. That said, all crystal balls are cloudy.

VOO is cheaper than VOOV and VOOG in terms of fees. But I wouldn’t own VOOV or VOOG anyway, because VOOV does a comparatively poor job of capturing actual Value stocks, and VOOG does a comparatively poor job of capturing actual Growth stocks.

Moreover, Vanguard has some other, cheaper funds for these same segments, namely VTV for Value and VUG for Growth. If you just want an inexpensive Vanguard fund to hone in on Value or Growth, go with one of those. They both only cost 0.04%. These are cheaper because they don’t have to pay to use the S&P name.

Value and Growth tend to switch back and forth in terms of periods of one outperforming the other. Market timing usually doesn’t work, and recency bias is all too real. If you don’t care about tilting (overweighting) one of these styles, just buy VOO to capture the S&P 500 and call it a day.

Do you own VOO, VOOV, or VOOG? Let me know in the comments.

Read the blog post here: [ Ссылка ]

#vanguard #voo #voov #voog #investing #etfs

// INVEST

► M1 Finance: [ Ссылка ]
► My comprehensive review of M1 Finance: [ Ссылка ]
► Get my dividend portfolio: [ Ссылка ]
► Lazy Portfolios: [ Ссылка ]
► Beginners’ reference guide (updated regularly): [ Ссылка ]
► Webull (for stock traders; get 2 free stocks): [ Ссылка ]

// SOCIAL

► Website: [ Ссылка ]
► Patreon: [ Ссылка ]
► Facebook: [ Ссылка ]
► Instagram: [ Ссылка ]
► Twitter: [ Ссылка ]

► Support my channel by shopping on Amazon (free for you): [ Ссылка ]

I appreciate all the support!

Disclaimer: This is not financial advice, investing advice, or tax advice. The information presented is for informational, educational, and entertainment purposes only. Investment products discussed are for illustrative purposes only. It is not a recommendation to buy, sell, or otherwise transact in any of the products mentioned. I always attempt to ensure the accuracy of information presented but that accuracy cannot be guaranteed. Do your own due diligence. All investing involves risk, including the risk of losing the money you invest. Past performance does not guarantee future results. Opinions are my own and do not represent those of other parties mentioned. Read my lengthier disclaimer here: [ Ссылка ]

Disclosure: Some of the links above are referral links. At no additional cost to you, if you choose to make a purchase or sign up for a service after clicking through those links, I may receive a small commission. This allows me to continue producing high-quality content on this channel and pays for the occasional cup of coffee. I have first-hand experience with every product or service I recommend, and I recommend them because I genuinely believe they are useful.

свернуть