facebookSPY vs SPYG? Can I know the differences and which one would be better for long term investing? - Seedly

Anonymous

02 May 2020

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General Investing

SPY vs SPYG? Can I know the differences and which one would be better for long term investing?

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SPY tracks the S&P500 index while SPYG tracks the S&P500 Growth index. The growth index is selected based on sales growth, the ratio of earnings change to price, and momentum. Direct competitors include iShares' IVW and Vanguard's VOOG.

For SPY, the top 3 sector allocation is in technology, healthcare and financials, whereas for SPYG, it is technology, consumer cyclicals and healthcare. Historically, for a shorter period, the difference between the two is slight. But over decades, SPYG has higher returns. SPYG seems to have lower expense ratio too so that might be worth considering.

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