The Vanguard Growth ETF (NYSEMKT:VUG) provides large-cap growth exposure at a lower cost, while the Vanguard Small-Cap Growth ETF (NYSEMKT:VBK) offers broader diversification among smaller, potentially high-growth firms.
Both funds seek to capture growth-oriented equities but target vastly different market capitalizations
While VUG tracks the CRSP US Large Cap Growth Index, focusing on established giants, VBK follows the CRSP US Small Cap Growth Index, reaching for younger companies that may have more room for expansion but carry different risk profiles. Snapshot (cost & size) With an expense ratio of 0.03%, the Vanguard Growth ETF is slightly more affordable than its small-cap counterpart. It also provides a higher payout, offering a 1.80% trailing-12-month dividend yield compared to the 0.40% yield from the small-cap fund.
Performance & risk comparison What’s inside Vanguard Growth ETF concentrates on large-cap leaders, with its largest positions including NVIDIA Corp. (NASDAQ:NVDA) at 13.33%, Apple Inc. (NASDAQ:AAPL) at 11.53%, and Microsoft Corp. (NASDAQ:MSFT) at 8.77%. VUG holds roughly 160 large-cap growth stocks and is heavily tilted toward the technology sector, which accounts for 54% of the portfolio. It was launched in 2004 and paid $1.59 per share over the trailing 12 months.