VBK vs SLYG: Which Small‑Cap Growth ETF Is Better for Your Portfolio?
Compare VBK and SLYG for small-cap growth: expense ratios, holdings, sector exposure, performance and liquidity to help portfolio builders pick the right ETF.
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Choosing between Vanguard's VBK and State Street's SLYG comes down to index design, cost, and the exposure you want in small-cap growth stocks. Both ETFs aim to capture the growth segment of small-cap U.S. equities, but they differ in how they define and weight that opportunity—differences that matter for long-term portfolio builders.
VBK tracks the CRSP US Small Cap Growth Index and is known for broad diversification and typically lower expenses. That combination makes it attractive for buy-and-hold investors who want wide small-cap growth exposure with minimal drag from fees. SLYG follows the S&P SmallCap 600 Growth Index, offering a somewhat more concentrated footprint that can tilt toward specific industry groups depending on the S&P index composition.
Sector exposure and holdings composition are two areas where the funds diverge. VBK’s broader index construction often results in a larger number of holdings and smoother exposure across sectors. SLYG, tied to the S&P SmallCap 600 Growth methodology, can present different sector weights and a smaller, more concentrated basket. These allocation differences can drive short-term performance variation and risk characteristics.
Cost, liquidity, and tracking should also guide your decision. Vanguard funds are widely praised for low cost, and VBK generally benefits from a lower expense ratio than many peers. SLYG may carry a slightly higher fee but still offers competitive liquidity and trading volume typical of State Street ETFs. Investors should review current expense ratios, assets under management, and spreads before trading.
Performance and turnover will vary over time. Because they track different indices, VBK and SLYG won’t move in lockstep; each can outperform the other in different market environments. Turnover and index methodology affect tax efficiency and realized capital gains—important considerations for taxable accounts.
Which should you choose? If you want broader diversification with historically lower fees, VBK often makes sense. If you prefer the S&P SmallCap 600 Growth exposure and a more concentrated small-cap growth profile, SLYG can be appropriate. Always review each ETF’s prospectus, current sector weights, and expense ratio, and consider consulting a financial advisor to match the ETF to your risk tolerance and portfolio goals.
Published on: January 12, 2026, 9:05 am
