How Leading ETFs Differ on Growth, Yield and Risk

Several recent comparisons of major U.S. ETFs show a consistent trade-off between concentrated growth exposure and broad-market diversification. Funds such as Vanguard Mega Cap Growth ETF (MGK) and Invesco QQQ Trust (QQQ) emphasize large technology and communication services holdings, while S&P 500 trackers like Vanguard S&P 500 ETF (VOO) and SPDR S&P 500 ETF Trust (SPY) spread assets across all sectors.

In the MGK–SPY matchup, MGK’s expense ratio is 0.07% versus 0.09% for SPY, but SPY offers a higher dividend yield of 1.07% compared with 0.35% for MGK. Over the past five years, $1,000 grew to $1,892 in MGK and $1,805 in SPY, while MGK’s maximum drawdown of -36.02% was notably deeper than SPY’s -24.50%.

Similarly, VOO and QQQ have shown a growth-versus-diversification divide. VOO charges 0.03% and yields 1.13%, while QQQ charges 0.18% and yields 0.46%. Yet QQQ outpaced VOO in 12‑month returns as of Feb. 2, 2026, 20.13% versus 15.79%, and in five‑year growth of $1,000, $1,945 versus $1,853, alongside a steeper five‑year max drawdown of -35.12% compared with -24.53% for VOO.

MGK and QQQ both concentrate more heavily in technology than broad S&P 500 funds. MGK allocates about 55% of its portfolio to tech, 17% to communication services, and 13% to consumer cyclical, with Nvidia, Apple and Microsoft as its largest positions. QQQ shows a similar pattern, with 53% in tech, 17% in communication services and 13% in consumer cyclical, and the same three companies at the top.

By contrast, SPY and VOO each dedicate roughly 35% of assets to technology, 13% to financial services and 11% to communication services, while holding just over 500 S&P 500 constituents. This broader sector mix contributes to lower betas of 1.00 for both SPY and VOO over five years, versus 1.20 for MGK and 1.15 for QQQ, and has coincided with smaller historical drawdowns.

The Schwab U.S. Dividend Equity ETF (SCHD) and Vanguard High Dividend Yield ETF (VYM) provide another angle on equity exposure, focusing on income. Both charge 0.06% and offer above‑market dividends, but SCHD’s yield of 3.5% exceeds VYM’s 2.3%, while VYM has led on recent 12‑month total return, 15.7% versus 11.3% as of Jan. 30, 2026.

SCHD holds 101 stocks and tilts toward energy (19%), consumer defensive (18%) and healthcare (18%), with Lockheed Martin, Texas Instruments and Chevron as its largest positions. VYM is broader, with 589 holdings and heavier exposure to financial services (21%) and technology (18%), alongside healthcare at 13%. Its top holdings include Broadcom, JPMorgan Chase and Exxon Mobil.

Both dividend funds avoid leverage and overlays. Their differing sector tilts and breadth have translated into a trade-off between higher current yield in SCHD and stronger recent performance and diversification in VYM, partly linked to gains in large technology names such as Broadcom.

Vanguard’s own lineup illustrates similar dynamics. VOO, with an expense ratio of 0.03%, tracks the full S&P 500 and yields 1.13%. MGK charges 0.07% and yields 0.35%. Over the latest 12‑month period to Feb. 2, 2026, MGK posted a 16.88% return, slightly ahead of VOO’s 15.60%. Over five years, $1,000 grew to $1,970 in MGK and $1,850 in VOO.

VOO holds 504 stocks and mirrors the S&P 500’s sector diversification, while MGK confines its portfolio to 60 mega‑cap growth stocks. Nvidia, Apple and Microsoft account for nearly 36% of MGK’s assets, versus about 21% in VOO. MGK’s higher beta of 1.20 and steeper five‑year max drawdown of -36.02% versus -24.53% for VOO underscore the added volatility accompanying its growth focus.

In fixed income, Schwab Long‑Term U.S. Treasury ETF (SCHQ) and iShares 20 Year Treasury Bond ETF (TLT) target long‑dated U.S. government debt, but differ on cost and risk. SCHQ’s expense ratio of 0.03% is one‑fifth of TLT’s 0.15%, while its dividend yield of 4.6% is modestly higher than TLT’s 4.4%.

Over the trailing year to Jan. 30, 2026, both funds delivered negative total returns, -0.4% for SCHQ and -1.4% for TLT. Over five years, $1,000 would have declined to $599 in SCHQ and $573 in TLT, with maximum drawdowns of -40.88% and -43.70%, respectively. SCHQ holds 98 bonds, all in U.S. government and agency issues maturing in 10‑plus years, while TLT owns 45 Treasury bonds maturing beyond 20 years, giving it greater sensitivity to long‑term rate moves.