- SPYG holds only stocks in the half of the S&P 500 that have growth characteristics. It has outperformed SPY ever since 2011.
- Looking at it in other time frames teaches us that its long-term performance can be inferior to that of SPY if it is bought when its holdings are seriously overvalued.
- SPYG's criteria for selecting growth stocks out of the parent index that SPY follows is sloppy.
- SPYG is significantly more highly valued than SPY. A look at the valuations of the 30 stocks that make up 1/3 of its value shows why.
- Predicting whether SPYG will turn out to continue to be a better investment than SPY going forward is very difficult given the role that momentum plays in the behavior of growth stocks.
For further details see:
SPY Vs. SPYG: How To Compare These Two ETFs