What’s better xlg or voo

The choice between Invesco 500 Top 50 ETF (XLG) and Vanguard S&P 500 ETF (VOO) depends on your investment goals, risk tolerance, and the specifics of each fund. 1. **Performance and Strategy**: - **XLG**: This ETF tracks the S&P 500 Top 50 index, which is a smart strategy to earn lofty risk-adjusted returns. It has a portfolio mix of tech and non-tech stocks, including the so-called "magnificent seven," positioning it for high risk-adjusted returns in a bullish market. It has set a new 12-month high, indicating strong performance. - **VOO**: This ETF is a passively managed fund that aims to replicate the performance of the S&P 500 index before fees and expenses. It has a broad exposure to the large-cap segment of the US equity market, with a focus on the information technology sector. It has generated approximately 13.3% average annual returns over the prior 10 years. 2. **Risk and Volatility**: - **XLG**: Offers an almost 30% stake in the largest companies from other sectors, which broadens its share price uptrend and lowers the downside risk. It has a beta of 1.08, indicating moderate volatility compared to the broader market. - **VOO**: Has a lower beta, suggesting less volatility than the broader market. This makes it a more stable option for risk-averse investors. Its almost 30-day standard deviation is 10.62, indicating relatively low volatility. 3. **Expense Ratio and Dividends**: - **XLG**: Has a higher expense ratio of 0.19%, compared to VOO's 0.03%. However, XLG distributes a quarterly dividend of $0.0863, which yields approximately 2.08%. - **VOO**: Offers a lower expense ratio, which means more of the investment stays with the investor. It has a trailing dividend yield of 1.27%. 4. **Recent Performance and Analyst Ratings**: - **XLG**: Recently reached a new 52-week high, indicating strong recent performance. It has received positive ratings and is considered a smart investment for earning risk-adjusted returns. - **VOO**: Has a solid track record and is considered a benchmark for large-cap multi-factor ETFs. It has a buy rating and is expected to match the performance of the S&P 500 index. In conclusion, if you prioritize a strategy focused on the top 50 stocks within the S&P 500 for potential high risk-adjusted returns, XLG might be the better choice. If you prefer a more stable, passively managed ETF with lower volatility and a lower expense ratio, VOO could be the preferred option. Consider your investment goals and risk tolerance to decide which ETF aligns better with your investment strategy.