The Vanguard Russell 1000 Growth ETF (NASDAQ:VONG) offers low-cost exposure to large-cap growth giants, while the iShares Russell 2000 Growth ETF (NYSEMKT:IWO) targets the more volatile small-cap growth segment.
Growth investing involves targeting companies with the potential to expand faster than the broader market
These two funds track very different segments of the growth landscape. VONG focuses on established large-cap leaders, whereas IWO seeks out smaller, emerging companies that may offer higher upside but carry distinct risks. Snapshot (cost & size) VONG is the more affordable option, with an expense ratio of 0.06% that is 0.18 percentage points lower than its peer.
Both funds offer identical trailing-12-month dividend yields of 0.40%, representing a low priority for income-seeking investors. Performance & risk comparison What’s inside Primarily invested in large-cap growth stocks, the Vanguard fund has a portfolio that includes 394 holdings. Its sector allocation is heavily weighted toward Technology at 51%, followed by Communication Services at 13%, and Consumer Cyclical at 13%.