Vanguard’s largest ETF, the Vanguard S&P 500 ETF (NYSEMKT: VOO), boasts $1.5 trillion in assets under management and is a cornerstone for many investors. In contrast, the Vanguard Russell 2000 ETF (NASDAQ: VTWO) has $13.9 billion AUM and includes small-cap stocks with lower valuation multiples compared to the S&P 500. This raises the question of whether VTWO represents a more attractive investment than VOO at present. A comparison of both funds reveals their differing investment characteristics and potential benefits.
