SLYG Boasts Higher Yield, While VBK Has Lower Fees

Vanguard Small-Cap Growth ETF (NYSEMKT:VBK) keeps costs low and has outperformed on total returns recently, while State Street SPDR S&P 600 Small Cap Growth ETF (NYSEMKT:SLYG) pays a bit more in dividends and features less severe drawdowns.

Both VBK and SLYG aim to capture the performance of U.S. small-cap growth stocks, but they differ in cost, sector exposures, and recent performance. This comparison looks at key metrics, including expenses, yield, risk, and portfolio makeup, to highlight which fund may appeal depending on specific investor priorities.

Beta measures price volatility relative to the S&P 500; beta is calculated from five-year monthly returns. The 1-yr return represents total return over the trailing 12 months.

VBK is more affordable in terms of fees with an expense ratio of 0.05% compared to SLYG’s 0.15%, while SLYG offers a slightly higher dividend yield at 0.8% versus VBK’s 0.5%—a modest advantage for those seeking current income.

SLYG tracks an S&P index focused on small-cap growth stocks with 339 holdings, balancing its top sector weights between industrials (19%), technology (19%), and healthcare (17%). Its largest positions as of the latest data are Interdigital Inc., CareTrust REIT Inc.(NYSE:CTRE), and Sitime Corp.(NASDAQ:SITM), each with a weighting of just over 1%. The fund has been around for more than 25 years, offering a long performance track record.

VBK, by contrast, holds 579 stocks—offering broader diversification—and leans more heavily into technology (26%) and industrials (23%), with healthcare at 17%. Its top holdings include Rocket Lab Corp (NASDAQ:RKLB), Comfort Systems USA Inc (NYSE:FIX), and Sandisk Corp (NASDAQ:SNDK), each with around 1.2% of assets. There are no unusual features or quirks called out for either ETF.

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Both Vanguard Small-Cap Growth ETF (VBK) and State Street SPDR S&P 600 Small Cap Growth ETF (SLYG) deliver exposure to small-cap growth stocks. That said, there are some key differences between them.

VBK holds nearly twice as many stocks (579) as SLYG, which gives it greater diversification. As for fees, VBK comes out on top with a lower expense ratio of 0.05%. It has also performed better over the last year, with a 23.0% one-year return, compared to 18.3% for SLYV. Finally, VBK has greater liquidity, with 10x SLYV’s AUM ($40 billion vs. $4 billion).

There are, however, areas where SLYV tops VBK. Yield is one. SLYV has a dividend yield of 0.8%. In addition, SLYV, despite its smaller number of holdings, has a smaller max drawdown over the last five years. The largest drawdown SLVY has experienced is -29.2%, while VBK dropped by 38.4%.

In summary, VBK’s diversification, higher recent returns, lower fees, and larger assets under management may appeal to investors seeking growth at a low cost.

On the other hand, SLYV’s higher yield and lower max drawdown could attract those focused on capital preservation and slightly higher income.

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Jake Lerch has positions in Rocket Lab and has the following options: long December 2026 $30 puts on Rocket Lab. The Motley Fool has positions in and recommends Comfort Systems USA, Rocket Lab, SiTime, and Vanguard Index Funds – Vanguard Small-Cap Growth ETF. The Motley Fool has a disclosure policy.

Small-Cap Growth ETFs: SLYG Boasts Higher Yield, While VBK Has Lower Fees was originally published by The Motley Fool