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: https://www.optimizedportfolio.com/voo-voov-voog/

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

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