facebookShould i invest in S&P 500 etf (SPY,IVV,VOO) OR VOOG? - Seedly

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Anonymous

26 Apr 2020

βˆ™

General Investing

Should i invest in S&P 500 etf (SPY,IVV,VOO) OR VOOG?

Which is better to invest in and why?

Discussion (6)

What are your thoughts?

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Shengshi Chiam, CFA

26 Apr 2020

Personal Finance Lead at Endowus

You should choose irish domiciled ETFs, and save on the dividend withholding tax.

This is especially important for long term buy and hold investors, as the taxes eat into your returns and thinner bid-ask spread is less critical. You can read more here.
https://endowus.com/insights/an-inconvenient-tr...

Traders will appreciate the thinner bid-ask though

View 1 replies

I came across this article (https://fourpillarfreedom.com/voo-vs-voog-vs-vo...) - by no means a form of validation for its content and past results may not be an indicator of future performance.

Comparing VOO and VOOG over the past 10 years,

VOO

  • lower expense ratio ~0.03%

  • larger no. of stocks ~500

  • higher dividend yield ~2%

  • lower annualised returns ~12.6%

VOOG

  • higher expense ratio ~0.15%

  • few no. of stocks ~300

  • lower dividend yield ~1.4%

  • higher annualised returns ~14%

It is pretty difficult to nail down on which is better, and the results above is only for the past 10 years. If we were to shift the time frame further back or an even longer time frame, the results would differ. Hence it is very subjective and dependent on one's investment objective - growth stocks may provide a greater potential upside but one must be able to stomach the higher volatility.

Overall, both options are good but it is tough to say which one is better.

View 1 replies

If you are looking at VOOG, you may want to consider VUG instead, as VUG has a lower expense ratio....

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