You love the safety of the S&P 500, but you want to supercharge your returns by focusing only on the fastest-growing companies within it. This is where S&P 500 Growth ETFs come in.
Two ETFs dominate this specific niche: **SPYG (SPDR Portfolio S&P 500 Growth ETF)** and **VOOG (Vanguard S&P 500 Growth ETF)**. Usually, Vanguard is the low-cost leader. But in this specific battle, the tables are turned. This manual will show you why one of these funds is the obvious choice for cost-conscious investors.
The Strategy: Filtering for Growth
Both SPYG and VOOG track the exact same parent index family: the **S&P 500 Growth Index**.
They take the 500 companies in the S&P 500 and filter them based on sales growth, earnings change, and momentum. Roughly 230-240 companies make the cut. This concentrates your money in Tech (Apple, Microsoft, Nvidia) and Consumer Services, while removing slow-growth Value sectors.
If you are unsure about the difference between these styles, read our Value vs. Growth comparison guide first.
The Critical Difference: Cost (Expense Ratio)
This is where the winner is decided.
1. SPYG (State Street)
SPYG is part of State Street's "Portfolio" series, designed specifically to compete on price. It has an expense ratio of **0.04%**.
2. VOOG (Vanguard)
VOOG is a surprisingly expensive fund by Vanguard standards. It has an expense ratio of **0.10%**.
The Verdict: SPYG is less than half the cost of VOOG. For holding the exact same basket of stocks, paying more makes no sense.
Comparison Matrix (SPYG vs VOOG)
The data speaks for itself.
| Feature | SPYG (SPDR) | VOOG (Vanguard) |
|---|---|---|
| Expense Ratio | 0.04% (Winner) | 0.10% (Loser) |
| Holdings | ~230 | ~230 |
| Liquidity (AUM) | High | Moderate |
| Verdict | Best Choice | Too Expensive |
The Verdict: SPYG is the Clear Winner
Why You Should Choose SPYG
It is rare to find such a clear-cut winner in the ETF world. **SPYG** tracks the same index as VOOG, has the same holdings, but charges **60% less in fees** (0.04% vs 0.10%). It also has higher trading volume, making it easier to buy and sell.
Is there any reason to buy VOOG?
Honestly, no. Unless your specific 401(k) plan only offers VOOG and not SPYG, there is no rational reason for a retail investor to pay the higher fee for VOOG. Vanguard offers a cheaper alternative called **VUG**, but VUG tracks a slightly different index.
Conclusion: Price Matters
In investing, you can't control returns, but you can control costs. By choosing **SPYG**, you get the growth power of the S&P 500's best companies at the lowest possible price. It is the smart, efficient choice for your growth bucket.
