VONG’s 0.06% expense ratio and large-cap focus drive outperformance over IWO’s 0.24% fee and small-cap volatility.
The Vanguard Russell 1000 Growth ETF (VONG) has outperformed the iShares Russell 2000 Growth ETF (IWO) with a 0.06% expense ratio, a quarter of IWO’s 0.24% fee. Both funds share a 0.4% dividend yield, but VONG’s large-cap focus reduces volatility relative to IWO’s small-cap exposure.
VONG tracks 394 holdings, with technology stocks comprising 51% of its portfolio. Top positions include Nvidia (13.21%), Apple (11.11%), and Microsoft (8.68%). IWO targets smaller companies, which may offer higher growth potential but come with increased price sensitivity and risk.
Investors prioritizing cost efficiency and stability may favor VONG, while those seeking higher growth potential might consider IWO despite its higher fees and volatility.