He Vanguard Russell 1000 Growth ETF (NASDAQ:VONG) offers low-cost exposure to large-cap giants, while the iShares Russell 2000 Growth ETF (NYSEMKT:IWO) targets smaller companies with potentially higher volatility and price sensitivity.
Growth investors are often faced with a choice between established market leaders and emerging innovators. The Vanguard fund tracks the large-cap growth market and offers exposure to the world’s most dominant corporations, while the iShares fund focuses on small-cap stocks that may offer greater growth potential but are more price sensitive.
Snapshot (cost and size)
|
Metric |
OIWO |
VONG |
|---|---|---|
|
Editor |
iShares |
Vanguard |
|
Expense ratio |
0.24% |
0.06% |
|
1 year return (starting May 18, 2026) |
30.6% |
24.3% |
|
Dividend yield |
0.4% |
0.4% |
|
Beta |
1.19 |
1.16 |
|
AUM |
14.2 billion dollars |
$44.9 billion |
Beta measures price volatility relative to the S&P 500; Beta is calculated from five years’ monthly returns. The 1-year return represents the total return over the past 12 months. The dividend yield is the distribution yield for the trailing 12 months.
Cost-conscious investors might find the Vanguard fund particularly attractive given its 0.06% expense ratio, which is a quarter of the iShares fund’s 0.24% fee. Both funds currently offer an equivalent dividend yield of 0.4%.
Return and Risk Comparison
|
Metric |
OIWO |
VONG |
|---|---|---|
|
Maximum reduction (5 years) |
(40.5%) |
(32.7%) |
|
$1,000 growth in 5 years (total return) |
$1,287 |
$2,068 |
What’s inside?
The Vanguard Russell 1000 Growth ETF (VONG) offers exposure to approximately 394 holdings, with the technology sector making up 51% of the portfolio. Other top allocations include communication services at 13% and consumer cyclical stocks at 13%. His most important positions include Nvidia Corp. (NASDAQ: NVDA) at 13.21%, Apple Inc. (NASDAQ:AAPL) at 11.11%, and Microsoft Corp. (NASDAQ:MSFT) at 8.68%. Launched in 2010, the fund has a trailing 12-month dividend of $0.56 per share and seeks to reflect the performance of large U.S. growth companies.
In comparison, the iShares Russell 2000 Growth ETF (IWO) targets the small-cap segment with a portfolio that reflects technology at 24%, industrials at 23%, and healthcare at 22%. His largest holdings include Bloom Energy Corp. (NYSE: BE) at 3.36%, fabrinet (NYSE: FN) at 1.50%, and Credo Technology Group Holding Ltd (NASDAQ:CRDO) at 1.50%. This fund, launched in 2000, manages its exposure through a strategy that currently shows a lead holding in its reported data. It has paid $1.51 per share over the last 12 months.
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That seems like the best buy
The Vanguard Russell 1000 Growth ETF (VONG) and the iShares Russell 2000 Growth ETF (IWO) are ETFs worth considering, especially for growth-oriented investors. Here are some key differences between the two.